ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Companhia Brasileira de Aluminio's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.33%.
As of today (2026-07-12), Companhia Brasileira de Aluminio's WACC % is 8.87%. Companhia Brasileira de Aluminio's ROC % is 1.67% (calculated using TTM income statement data).
Companhia Brasileira de Aluminio earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Companhia Brasileira de Aluminio (BSP:CBAV3) 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, Companhia Brasileira de Aluminio's WACC % is 8.87%. Companhia Brasileira de Aluminio's ROC % is 1.67% (calculated using TTM income statement data).
Companhia Brasileira de Aluminio 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.
Companhia Brasileira de Aluminio ROC % Related Terms
Companhia Brasileira de Aluminio 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.
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.
Companhia Brasileira de Aluminio (BSP:CBAV3) has a ROC % of 7.33% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Companhia Brasileira de Aluminio and its competitors.
Is Companhia Brasileira de Aluminio's ROC % too high?
Companhia Brasileira de Aluminio's current ROC % is 7.33%. Overall, Companhia Brasileira de Aluminio has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Companhia Brasileira de Aluminio's ROC % compare to AA and CENX?
Companhia Brasileira de Aluminio's ROC % of 7.33% can be compared against companies in the Metals & Mining industry. 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 Metals & Mining company?
A good ROC % depends on the Metals & Mining industry context. 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 Companhia Brasileira de Aluminio and its competitors. Companhia Brasileira de Aluminio's current ROC % is 7.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Companhia Brasileira de Aluminio stock overvalued right now?
Based on GuruFocus' analysis, Companhia Brasileira de Aluminio (BSP:CBAV3) is currently considered Significantly Overvalued. The stock's GF Value™ is R$5.43, compared to a current price of R$10.81 — trading 99.1% above its estimated fair value. The current ROC % is 7.33%. Companhia Brasileira de Aluminio's overall GF Score™ is 55/100 with 11 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 Companhia Brasileira de Aluminio (BSP:CBAV3), the current ROC % is 7.33% 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 Companhia Brasileira de Aluminio (BSP:CBAV3) Overvalued in 2026?
Based on GuruFocus' analysis, Companhia Brasileira de Aluminio stock appears to be overvalued.
The current stock price of R$10.81 is trading 99.1% above its estimated GF Value™ of R$5.43.
GuruFocus considers Companhia Brasileira de Aluminio to be Significantly Overvalued.
Key valuation signals for BSP:CBAV3:
ROC %: 7.33%
GF Value™: R$5.43 vs. price of R$10.81 (99.1% above fair value)
No single metric tells the full story. See the BSP:CBAV3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Companhia Brasileira de Aluminio Business Description
Companhia Brasileira de Aluminio SA is engaged in the exploration of bauxite mining in Brazil, producing and/or trading bauxite, alumina, primary aluminum, and semi-fabricated products in Brazil and abroad. The Company has a wide product range, such as ingots, billets, plates, coils, foil, and extruded products. The company has three operating segments; the Aluminum segment comprises the operations of the aluminum production chain, from bauxite mining to the production of primary and downstream products, the Energy segment; Comprises the sale of surplus energy to the market, and others segment.
55GF Score
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