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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Charter Hall Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 5.52%.
As of today (2026-07-26), Charter Hall Group's WACC % is 16.30%. Charter Hall Group's ROC % is 5.33% (calculated using TTM income statement data).
Charter Hall Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Charter Hall Group (OTCPK:CTOUF) 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, Charter Hall Group's WACC % is 16.30%. Charter Hall Group's ROC % is 5.33% (calculated using TTM income statement data).
Charter Hall Group 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.
Charter Hall Group ROC % Related Terms
Charter Hall Group ROC % Historical Data
* Premium members only.
The historical data trend for Charter Hall Group'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.
Charter Hall Group (CTOUF) has a ROC % of 5.52% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Charter Hall Group and its competitors.
Is Charter Hall Group's ROC % too high?
Charter Hall Group's current ROC % is 5.52%. The REITs industry median ROC % is 3.74. Charter Hall Group's value of 5.52% is 47.6% above this industry median. Overall, Charter Hall Group has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Charter Hall Group's ROC % compare to VICI and WPC?
Charter Hall Group's ROC % of 5.52% can be compared against companies in the REITs industry. The industry median ROC % is 3.74. Charter Hall Group's value of 5.52% is 47.6% 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 REITs company?
The median ROC % among REITs companies is 3.74, based on 739 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. Charter Hall Group's current ROC % of 5.52% is 47.6% 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 Charter Hall Group and its competitors. For the REITs industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Charter Hall Group's current ROC % is 5.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Charter Hall Group stock overvalued right now?
Based on GuruFocus' analysis, Charter Hall Group (CTOUF) is currently considered Fairly Valued. The stock's GF Value™ is $15.59, compared to a current price of $15.80 — trading 1.3% above its estimated fair value. The current ROC % is 5.52% and 47.6% above the REITs industry median of 3.74. Charter Hall Group's overall GF Score™ is 80/100 with 3 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 Charter Hall Group (CTOUF), the current ROC % is 5.52% 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 Charter Hall Group (CTOUF) Overvalued in 2026?
Based on GuruFocus' analysis, Charter Hall Group stock appears to be overvalued.
The current stock price of $15.80 is trading 1.3% above its estimated GF Value™ of $15.59.
GuruFocus considers Charter Hall Group to be Fairly Valued.
Key valuation signals for CTOUF:
ROC %: 5.52%
GF Value™: $15.59 vs. price of $15.80 (1.3% above fair value)
No single metric tells the full story. See the CTOUF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Charter Hall Group is the umbrella group of over 40 retail and institutional unlisted funds, as well as three listed REITs: Charter Hall Long WALE REIT, Charter Hall Retail REIT, and Charter Hall Social Infrastructure REIT. Investment management fees and property services fees from these investment vehicles are the main sources of revenue for Charter Hall. The aggregate portfolio across the platform has one third exposure to office, one third to logistics, and the remainder in retail, social infrastructure and listed equities. Charter Hall co-invests in many of the vehicles, so a portion of its earnings come from rent and fund distributions. The group also earns development revenue on projects that it manages, but this income stream is relatively small.
80GF Score
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