ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Cellcom Israel's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 5.30%.
As of today (2026-06-25), Cellcom Israel's WACC % is 10.33%. Cellcom Israel's ROC % is 5.19% (calculated using TTM income statement data).
Cellcom Israel earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Cellcom Israel (OTCPK:CELJF) 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, Cellcom Israel's WACC % is 10.33%. Cellcom Israel's ROC % is 5.19% (calculated using TTM income statement data).
Cellcom Israel 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.
Cellcom Israel ROC % Related Terms
Cellcom Israel ROC % Historical Data
* Premium members only.
The historical data trend for Cellcom Israel's ROC % can be seen below:
* 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.
Cellcom Israel (CELJF) has a ROC % of 5.30% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Cellcom Israel and its competitors.
Is Cellcom Israel's ROC % too high?
Cellcom Israel's current ROC % is 5.30%. The Telecommunication Services industry median ROC % is 4.54. Cellcom Israel's value of 5.30% is 16.7% above this industry median. Overall, Cellcom Israel has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cellcom Israel's ROC % compare to TMUS and VZ?
Cellcom Israel's ROC % of 5.30% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.54. Cellcom Israel's value of 5.30% is 16.7% 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 Telecommunication Services company?
The median ROC % among Telecommunication Services companies is 4.54, based on 366 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. Cellcom Israel's current ROC % of 5.30% is 16.7% 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 Cellcom Israel and its competitors. For the Telecommunication Services industry, the median ROC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cellcom Israel's current ROC % is 5.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cellcom Israel stock overvalued right now?
Based on GuruFocus' analysis, Cellcom Israel (CELJF) is currently considered Significantly Overvalued. The stock's GF Value™ is $5.54, compared to a current price of $10.46 — trading 88.8% above its estimated fair value. The current ROC % is 5.30% and 16.7% above the Telecommunication Services industry median of 4.54. Cellcom Israel's overall GF Score™ is 57/100 with 5 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 Cellcom Israel (CELJF), the current ROC % is 5.30% 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 Cellcom Israel (CELJF) Overvalued in 2026?
Based on GuruFocus' analysis, Cellcom Israel stock appears to be overvalued.
The current stock price of $10.46 is trading 88.8% above its estimated GF Value™ of $5.54.
GuruFocus considers Cellcom Israel to be Significantly Overvalued.
Key valuation signals for CELJF:
ROC %: 5.30%
GF Value™: $5.54 vs. price of $10.46 (88.8% above fair value)
Industry Position: 16.7% above the Telecommunication Services median
No single metric tells the full story. See the CELJF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cellcom Israel Ltd is an Israeli communications group that provides a wide variety of communication services in Israel. Additionally, it also provides electricity supply services to private and business customers. The group's operating segments are: Cellular Communications, Fixed Line Communications, and Electricity Supply. The majority of its revenue is generated from the Cellular Communications segment, which provides cellular communications services in Israel, on several networks deployed across the country, which include calls, text messages (SMS, MMS), internet access, and transfer of data over the internet and other associated equipment and services. In addition, the group provides overseas roaming services to its customers and to customers of foreign operators visiting Israel.
57GF Score
Get the complete analysis for CELJF
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CELJF has been successfully added to your 
