ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Brasilagro - Cia Bras de Prop Agricolas's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -0.37%.
Brasilagro - Cia Bras de Prop Agricolas (BSP:AGRO3) 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, Brasilagro - Cia Bras de Prop Agricolas's WACC % is 9.15%. Brasilagro - Cia Bras de Prop Agricolas's ROC % is 1.02% (calculated using TTM income statement data).
Brasilagro - Cia Bras de Prop Agricolas 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.
Brasilagro - Cia Bras de Prop Agricolas ROC % Related Terms
Brasilagro - Cia Bras de Prop Agricolas ROC % Historical Data
* 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.
Brasilagro - Cia Bras de Prop Agricolas ROC % Chart
Brasilagro - Cia Bras de Prop Agricolas Annual Data
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.
Brasilagro - Cia Bras de Prop Agricolas (BSP:AGRO3) has a ROC % of -0.37% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Brasilagro - Cia Bras de Prop Agricolas and its competitors.
Is Brasilagro - Cia Bras de Prop Agricolas' ROC % too high?
Brasilagro - Cia Bras de Prop Agricolas' current ROC % is -0.37%. Overall, Brasilagro - Cia Bras de Prop Agricolas has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Brasilagro - Cia Bras de Prop Agricolas' ROC % compare to ADM and BG?
Brasilagro - Cia Bras de Prop Agricolas' ROC % of -0.37% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROC % is 5.14. 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 Consumer Packaged Goods company?
The median ROC % among Consumer Packaged Goods companies is 5.14, based on 1,948 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. 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 Brasilagro - Cia Bras de Prop Agricolas and its competitors. For the Consumer Packaged Goods industry, the median ROC % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brasilagro - Cia Bras de Prop Agricolas's current ROC % is -0.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brasilagro - Cia Bras de Prop Agricolas stock overvalued right now?
Based on GuruFocus' analysis, Brasilagro - Cia Bras de Prop Agricolas (BSP:AGRO3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$22.03, compared to a current price of R$17.96 — trading 18.5% below its estimated fair value. The current ROC % is -0.37%. Brasilagro - Cia Bras de Prop Agricolas' overall GF Score™ is 71/100 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 Brasilagro - Cia Bras de Prop Agricolas (BSP:AGRO3), the current ROC % is -0.37% 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 Brasilagro - Cia Bras de Prop Agricolas (BSP:AGRO3) Overvalued in 2026?
Based on GuruFocus' analysis, Brasilagro - Cia Bras de Prop Agricolas stock appears to be undervalued.
The current stock price of R$17.96 is trading 18.5% below its estimated GF Value™ of R$22.03.
GuruFocus considers Brasilagro - Cia Bras de Prop Agricolas to be Modestly Undervalued.
Key valuation signals for BSP:AGRO3:
ROC %: -0.37%
GF Value™: R$22.03 vs. price of R$17.96 (18.5% below fair value)
No single metric tells the full story. See the BSP:AGRO3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Brasilagro - Cia Bras de Prop Agricolas Business Description
Brasilagro - Cia Bras de Prop Agricolas is a Brazil-based company, engaged in the acquisition, development, operation, and sale of rural properties suitable for agricultural activities. The business activity of the firm is operated through Real estate, Grains, Sugarcane, Cattle rising, Cotton, and Other segments. The Grains segment is involved in the production and sale of soybean and corn. The Sugarcane segment includes the sale of raw product. The Real Estate segment presents the P&L from operations carried out in the company's subsidiaries. The Cattle Raising segment consists of producing and selling beef calves after weaning, which characterizes the activity as breeding and the Other segment engages in other corporate activities. The majority of revenue is earned from Grain Segment.
71GF Score
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