ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Diana Shipping's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 4.73%.
As of today (2026-06-25), Diana Shipping's WACC % is 6.17%. Diana Shipping's ROC % is 3.92% (calculated using TTM income statement data).
Diana Shipping earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Diana Shipping (NYSE:DSX) 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, Diana Shipping's WACC % is 6.17%. Diana Shipping's ROC % is 3.92% (calculated using TTM income statement data).
Diana Shipping 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.
Diana Shipping ROC % Related Terms
Diana Shipping ROC % Historical Data
* Premium members only.
The historical data trend for Diana Shipping'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.
Diana Shipping (DSX) has a ROC % of 4.73% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Diana Shipping and its competitors.
Is Diana Shipping's ROC % too high?
Diana Shipping's current ROC % is 4.73%. The Transportation industry median ROC % is 4.69. Diana Shipping's value of 4.73% is 0.9% above this industry median. Overall, Diana Shipping has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Diana Shipping's ROC % compare to SHIP and GASS?
Diana Shipping's ROC % of 4.73% can be compared against companies in the Transportation industry. The industry median ROC % is 4.69. Diana Shipping's value of 4.73% is 0.9% 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 Transportation company?
The median ROC % among Transportation companies is 4.69, based on 994 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. Diana Shipping's current ROC % of 4.73% is 0.9% 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 Diana Shipping and its competitors. For the Transportation industry, the median ROC % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diana Shipping's current ROC % is 4.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diana Shipping stock overvalued right now?
Based on GuruFocus' analysis, Diana Shipping (DSX) is currently considered Fairly Valued. The stock's GF Value™ is $2.16, compared to a current price of $2.06 — trading 4.6% below its estimated fair value. The current ROC % is 4.73% and 0.9% above the Transportation industry median of 4.69. Diana Shipping's overall GF Score™ is 67/100 with 4 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 Diana Shipping (DSX), the current ROC % is 4.73% 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 Diana Shipping (DSX) Overvalued in 2026?
Based on GuruFocus' analysis, Diana Shipping stock appears to be undervalued.
The current stock price of $2.06 is trading 4.6% below its estimated GF Value™ of $2.16.
GuruFocus considers Diana Shipping to be Fairly Valued.
Key valuation signals for DSX:
ROC %: 4.73%
GF Value™: $2.16 vs. price of $2.06 (4.6% below fair value)
Industry Position: 0.9% above the Transportation median
No single metric tells the full story. See the DSX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diana Shipping Inc provides shipping transportation services. The company, through its subsidiaries, operates a fleet of vessels consisting of dry bulk carriers such as Panamax, Kamsarmax, Post-Panamax, Capesize, and Newcastlemax vessels. Using this fleet, the firm provides transportation services for various goods, including coal, iron ore, and grains. It also transports minor bulks, including steel products, cement, and fertilizers, through its dry bulk carrier vessels. The operation of the vessels is the main source of revenue generation; the services provided by the vessels are similar, and all operate under the same economic environment.
67GF Score
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