ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. KP Green Engineering's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 20.06%.
As of today (2026-07-08), KP Green Engineering's WACC % is 13.12%. KP Green Engineering's ROC % is 20.28% (calculated using TTM income statement data).
KP Green Engineering generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
KP Green Engineering (BOM:544150) 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, KP Green Engineering's WACC % is 13.12%. KP Green Engineering's ROC % is 20.28% (calculated using TTM income statement data).
KP Green Engineering generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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 two times the semi-annual (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.
KP Green Engineering (BOM:544150) has a ROC % of 20.06% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on KP Green Engineering and its competitors.
Is KP Green Engineering's ROC % too high?
KP Green Engineering's current ROC % is 20.06%. The Industrial Products industry median ROC % is 5.19. KP Green Engineering's value of 20.06% is 286.5% above this industry median. Overall, KP Green Engineering has a GF Score™ of 46/100, reflecting its overall financial health beyond just this single metric.
How does KP Green Engineering's ROC % compare to CRS and ATI?
KP Green Engineering's ROC % of 20.06% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.19. KP Green Engineering's value of 20.06% is 286.5% 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 an Industrial Products company?
The median ROC % among Industrial Products companies is 5.19, based on 3,029 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. KP Green Engineering's current ROC % of 20.06% is 286.5% 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 KP Green Engineering and its competitors. For the Industrial Products industry, the median ROC % is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KP Green Engineering's current ROC % is 20.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KP Green Engineering stock overvalued right now?
KP Green Engineering (BOM:544150) has a current ROC % of 20.06%. The current ROC % is 20.06% and 286.5% above the Industrial Products industry median of 5.19. KP Green Engineering's overall GF Score™ is 46/100 with 4 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 KP Green Engineering (BOM:544150), the current ROC % is 20.06% 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.
KP Green Engineering Ltd manufactures fabricated and hot-dip galvanized steel products. The company is engaged in the business of galvanization of structures as well as it is engaged in providing services of fabrication, galvanizing fault rectification team, Patrolling of Optical Fiber Cables, Site Clearance Work, Solar Roof-top installation, Sale of solar electricity, EPC, Mobile tower Manufacturing and Turnkey Service Provider to Mobile and Renewable Energy Industry.
46GF Score
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