ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Broadstone Net Lease's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 4.34%.
As of today (2026-06-27), Broadstone Net Lease's WACC % is 7.06%. Broadstone Net Lease's ROC % is 4.28% (calculated using TTM income statement data).
Broadstone Net Lease earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Broadstone Net Lease (NYSE:BNL) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Broadstone Net Lease's WACC % is 7.06%. Broadstone Net Lease's ROC % is 4.28% (calculated using TTM income statement data).
Broadstone Net Lease earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Broadstone Net Lease (BNL) has a ROC % of 4.34% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Broadstone Net Lease and its competitors.
Is Broadstone Net Lease's ROC % too high?
Broadstone Net Lease's current ROC % is 4.34%. The REITs industry median ROC % is 3.74. Broadstone Net Lease's value of 4.34% is 16% above this industry median. Overall, Broadstone Net Lease has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Broadstone Net Lease's ROC % compare to GNL and AAT?
Broadstone Net Lease's ROC % of 4.34% can be compared against companies in the REITs industry. The industry median ROC % is 3.74. Broadstone Net Lease's value of 4.34% is 16% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a REITs company?
The median ROC % among REITs companies is 3.74, based on 749 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Broadstone Net Lease's current ROC % of 4.34% is 16% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Broadstone Net Lease and its competitors. For the REITs industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Broadstone Net Lease's current ROC % is 4.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Broadstone Net Lease stock overvalued right now?
Based on GuruFocus' analysis, Broadstone Net Lease (BNL) is currently considered Modestly Overvalued. The stock's GF Value™ is $17.62, compared to a current price of $21.21 — trading 20.4% above its estimated fair value. The current ROC % is 4.34% and 16% above the REITs industry median of 3.74. Broadstone Net Lease's overall GF Score™ is 78/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Broadstone Net Lease (BNL), the current ROC % is 4.34% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Broadstone Net Lease (BNL) Overvalued in 2026?
Based on GuruFocus' analysis, Broadstone Net Lease stock appears to be overvalued.
The current stock price of $21.21 is trading 20.4% above its estimated GF Value™ of $17.62.
GuruFocus considers Broadstone Net Lease to be Modestly Overvalued.
Key valuation signals for BNL:
ROC %: 4.34%
GF Value™: $17.62 vs. price of $21.21 (20.4% above fair value)
No single metric tells the full story. See the BNL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Broadstone Net Lease Inc is an internally managed real estate investment trust that invests in, owns, and manages single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. The company has selectively invested in net leased assets in the industrial, healthcare, restaurant, retail, and office property types. The company focuses on investing in real estate that is operated by creditworthy single tenants in industries characterized by positive business drivers and trends. The company targets properties that are an integral part of the tenants' businesses and are therefore opportunities to secure long-term net leases.
78GF Score
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