ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Orizon Valorizacao De Residuos's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.38%.
As of today (2026-07-07), Orizon Valorizacao De Residuos's WACC % is 9.65%. Orizon Valorizacao De Residuos's ROC % is 8.17% (calculated using TTM income statement data).
Orizon Valorizacao De Residuos earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Orizon Valorizacao De Residuos (BSP:ORVR3) 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, Orizon Valorizacao De Residuos's WACC % is 9.65%. Orizon Valorizacao De Residuos's ROC % is 8.17% (calculated using TTM income statement data).
Orizon Valorizacao De Residuos 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.
Orizon Valorizacao De Residuos ROC % Related Terms
Orizon Valorizacao De Residuos 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.
Orizon Valorizacao De Residuos (BSP:ORVR3) has a ROC % of 6.38% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Orizon Valorizacao De Residuos and its competitors.
Is Orizon Valorizacao De Residuos' ROC % too high?
Orizon Valorizacao De Residuos' current ROC % is 6.38%. The Waste Management industry median ROC % is 3.50. Orizon Valorizacao De Residuos' value of 6.38% is 82.3% above this industry median. Overall, Orizon Valorizacao De Residuos has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Orizon Valorizacao De Residuos' ROC % compare to WM and RSG?
Orizon Valorizacao De Residuos' ROC % of 6.38% can be compared against companies in the Waste Management industry. The industry median ROC % is 3.50. Orizon Valorizacao De Residuos' value of 6.38% is 82.3% 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 Waste Management company?
The median ROC % among Waste Management companies is 3.50, based on 245 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. Orizon Valorizacao De Residuos's current ROC % of 6.38% is 82.3% 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 Orizon Valorizacao De Residuos and its competitors. For the Waste Management industry, the median ROC % is 3.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Orizon Valorizacao De Residuos's current ROC % is 6.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Orizon Valorizacao De Residuos stock overvalued right now?
Based on GuruFocus' analysis, Orizon Valorizacao De Residuos (BSP:ORVR3) is currently considered Modestly Overvalued. The stock's GF Value™ is R$63.11, compared to a current price of R$78.49 — trading 24.4% above its estimated fair value. The current ROC % is 6.38% and 82.3% above the Waste Management industry median of 3.50. Orizon Valorizacao De Residuos' overall GF Score™ is 87/100 with 7 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 Orizon Valorizacao De Residuos (BSP:ORVR3), the current ROC % is 6.38% 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 Orizon Valorizacao De Residuos (BSP:ORVR3) Overvalued in 2026?
Based on GuruFocus' analysis, Orizon Valorizacao De Residuos stock appears to be overvalued.
The current stock price of R$78.49 is trading 24.4% above its estimated GF Value™ of R$63.11.
GuruFocus considers Orizon Valorizacao De Residuos to be Modestly Overvalued.
Key valuation signals for BSP:ORVR3:
ROC %: 6.38%
GF Value™: R$63.11 vs. price of R$78.49 (24.4% above fair value)
Industry Position: 82.3% above the Waste Management median
No single metric tells the full story. See the BSP:ORVR3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Orizon Valorizacao De Residuos Business Description
Orizon Valorizacao De Residuos SA is a waste treatment and recovery company. The company offers solid waste treatment services, treatment of gases, processing and industrialization of waste, monitoring groundwater, and environmental remediation services.
87GF Score
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