ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Robert Walters's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -7.65%.
As of today (2026-06-24), Robert Walters's WACC % is 7.48%. Robert Walters's ROC % is -7.50% (calculated using TTM income statement data).
Robert Walters earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Robert Walters (CHIX:RWAl) 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, Robert Walters's WACC % is 7.48%. Robert Walters's ROC % is -7.50% (calculated using TTM income statement data).
Robert Walters 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.
Robert Walters ROC % Related Terms
Robert Walters ROC % Historical Data
* Premium members only.
The historical data trend for Robert Walters'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 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.
Robert Walters (CHIX:RWAL) has a ROC % of -7.65% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Robert Walters and its competitors.
Is Robert Walters' ROC % too high?
Robert Walters' current ROC % is -7.65%. Overall, Robert Walters has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Robert Walters' ROC % compare to KFY and RHI?
Robert Walters' ROC % of -7.65% can be compared against companies in the Business Services industry. The industry median ROC % is 5.92. 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 Business Services company?
The median ROC % among Business Services companies is 5.92, based on 1,075 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 Robert Walters and its competitors. For the Business Services industry, the median ROC % is 5.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Robert Walters's current ROC % is -7.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Robert Walters stock overvalued right now?
Based on GuruFocus' analysis, Robert Walters (CHIX:RWAL) is currently considered Possible Value Trap. The stock's GF Value™ is £2.72, compared to a current price of £0.83 — trading 69.4% below its estimated fair value. The current ROC % is -7.65%. Robert Walters' overall GF Score™ is 51/100 with 2 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 Robert Walters (CHIX:RWAL), the current ROC % is -7.65% 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 Robert Walters (CHIX:RWAL) Overvalued in 2026?
Based on GuruFocus' analysis, Robert Walters stock appears to be undervalued.
The current stock price of £0.83 is trading 69.4% below its estimated GF Value™ of £2.72.
GuruFocus considers Robert Walters to be Possible Value Trap.
Key valuation signals for CHIX:RWAL:
ROC %: -7.65%
GF Value™: £2.72 vs. price of £0.83 (69.4% below fair value)
No single metric tells the full story. See the CHIX:RWAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Robert Walters PLC is a specialist professional recruitment group. The company specialises in the placement of professionals across the disciplines of accountancy and finance, banking, engineering, HR, healthcare, IT, legal, sales, marketing, secretarial and support and supply chain, logistics, and procurement. The company's client base ranges from blue-chip corporates and financial services organizations to SMEs and start-ups. The company provides three core services: Specialist professional recruitment, Recruitment outsourcing, and Talent advisory. Its geographical area of operation includes Asia Pacific, the UK, Europe, and the Rest of World. It generates the majority of its revenue from the Asia Pacific region.
51GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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