ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Reckitt Benckiser Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 14.96%.
As of today (2026-06-25), Reckitt Benckiser Group's WACC % is 10.09%. Reckitt Benckiser Group's ROC % is 12.07% (calculated using TTM income statement data).
Reckitt Benckiser Group 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.
Reckitt Benckiser Group (CHIX:RKTl) 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, Reckitt Benckiser Group's WACC % is 10.09%. Reckitt Benckiser Group's ROC % is 12.07% (calculated using TTM income statement data).
Reckitt Benckiser Group 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 (Dec. 2025) 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.
Reckitt Benckiser Group (CHIX:RKTL) has a ROC % of 14.96% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Reckitt Benckiser Group and its competitors.
Is Reckitt Benckiser Group's ROC % too high?
Reckitt Benckiser Group's current ROC % is 14.96%. The Consumer Packaged Goods industry median ROC % is 5.14. Reckitt Benckiser Group's value of 14.96% is 191.1% above this industry median. Overall, Reckitt Benckiser Group has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Reckitt Benckiser Group's ROC % compare to PG and CL?
Reckitt Benckiser Group's ROC % of 14.96% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROC % is 5.14. Reckitt Benckiser Group's value of 14.96% is 191.1% 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 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. Reckitt Benckiser Group's current ROC % of 14.96% is 191.1% 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 Reckitt Benckiser Group 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. Reckitt Benckiser Group's current ROC % is 14.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reckitt Benckiser Group stock overvalued right now?
Based on GuruFocus' analysis, Reckitt Benckiser Group (CHIX:RKTL) is currently considered Modestly Undervalued. The stock's GF Value™ is £54.08, compared to a current price of £48.31 — trading 10.7% below its estimated fair value. The current ROC % is 14.96% and 191.1% above the Consumer Packaged Goods industry median of 5.14. Reckitt Benckiser Group's overall GF Score™ is 72/100 with 1 warning sign 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 Reckitt Benckiser Group (CHIX:RKTL), the current ROC % is 14.96% as of Dec. 2025. 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 Reckitt Benckiser Group (CHIX:RKTL) Overvalued in 2026?
Based on GuruFocus' analysis, Reckitt Benckiser Group stock appears to be undervalued.
The current stock price of £48.31 is trading 10.7% below its estimated GF Value™ of £54.08.
GuruFocus considers Reckitt Benckiser Group to be Modestly Undervalued.
Key valuation signals for CHIX:RKTL:
ROC %: 14.96%
GF Value™: £54.08 vs. price of £48.31 (10.7% below fair value)
Industry Position: 191.1% above the Consumer Packaged Goods median
No single metric tells the full story. See the CHIX:RKTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reckitt Benckiser was formed in 1999 through the merger of the British firm Reckitt & Colman and Dutch-based Benckiser. Recently rebranded under the corporate name Reckitt, it sells a portfolio that includes a variety of household and consumer health brands, such as Lysol, Finish, Durex, and Mucinex, many of which hold a number-one or number-two position in their categories globally. Reckitt has repositioned its portfolio and has entered the infant formula market through the acquisition of Mead Johnson in 2017, expanded its consumer health presence by acquiring Schiff Nutrition, K-Y, and Biofreeze, and has exited the food industry. The firm operates in 60 countries and sells products in more than 200, generating over 40% of core sales from emerging markets.
72GF Score
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