EMMA (Emmaus Life Sciences) ROC %: -5.54% (As of Mar. 2026)


What is Emmaus Life Sciences ROC %?

Emmaus Life Sciences EMMA -16.67% ROC % is -5.54% as of Mar. 2026. The stock has 6 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Emmaus Life Sciences's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -5.54%.

As of today (2026-06-26), Emmaus Life Sciences's WACC % is 24.98%. Emmaus Life Sciences's ROC % is 0.64% (calculated using TTM income statement data). Emmaus Life Sciences earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Emmaus Life Sciences  (OTCPK:EMMA) 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, Emmaus Life Sciences's WACC % is 24.98%. Emmaus Life Sciences's ROC % is 0.64% (calculated using TTM income statement data). Emmaus Life Sciences 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.

Emmaus Life Sciences ROC % Related Terms

Emmaus Life Sciences ROC % Historical Data

* Premium members only.

The historical data trend for Emmaus Life Sciences'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.

Emmaus Life Sciences ROC % Chart

Emmaus Life Sciences Annual Data
Trend Sep16 Sep17 Sep18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -8.77 -8.32 4.59 -2.86 0.37

Emmaus Life Sciences Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6.18 -1.56 4.66 5.98 -5.54

Emmaus Life Sciences ROC % Calculation

Emmaus Life Sciences's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2025 is calculated as:

ROC % (A: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2024 ) + Invested Capital (A: Dec. 2025 ))/ count )
=0.231 * ( 1 - 0% )/( (63.464 + 60.147)/ 2 )
=0.231/61.8055
=0.37 %

where

Invested Capital(A: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=23.602 - 16.926 - ( 1.389 - max(0, 63.555 - 6.767+1.389))
=63.464

Invested Capital(A: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=21.436 - 22.615 - ( 2.127 - max(0, 69.072 - 7.746+2.127))
=60.147

Emmaus Life Sciences's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=-3.292 * ( 1 - 0% )/( (60.147 + 58.751)/ 2 )
=-3.292/59.449
=-5.54 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=21.436 - 22.615 - ( 2.127 - max(0, 69.072 - 7.746+2.127))
=60.147

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=18.696 - 24.487 - ( 1.072 - max(0, 70.537 - 5.995+1.072))
=58.751

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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -5.54% mean?
Emmaus Life Sciences (EMMA) has a ROC % of -5.54% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Emmaus Life Sciences and its competitors.
Is Emmaus Life Sciences' ROC % too high?
Emmaus Life Sciences' current ROC % is -5.54%.
How does Emmaus Life Sciences' ROC % compare to CERO and AGTX?
Emmaus Life Sciences' ROC % of -5.54% can be compared against companies in the Biotechnology industry. 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 Biotechnology company?
A good ROC % depends on the Biotechnology industry context. 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 Emmaus Life Sciences and its competitors. Emmaus Life Sciences's current ROC % is -5.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Emmaus Life Sciences stock overvalued right now?
Based on GuruFocus' analysis, Emmaus Life Sciences (EMMA) is currently considered Fairly Valued. The stock's GF Value™ is $0.01, compared to a current price of $0.01 — trading right at its estimated fair value. The current ROC % is -5.54%. 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 Emmaus Life Sciences (EMMA), the current ROC % is -5.54% 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.

Emmaus Life Sciences Business Description

Address 21250 Hawthorne Boulevard, Suite 800, Torrance, CA, USA, 90503
Emmaus Life Sciences Inc is a commercial-stage biopharmaceutical company engaged in the discovery, development, marketing and sales of the Company's product Endari (prescription grade L-glutamine oral powder), to reduce the acute complications of sickle cell disease (SCD) in adult and pediatric patients five years of age and older. Endari is reimbursable by the Centers for Medicare and Medicaid Services, and every state provides coverage for Endari for outpatient prescriptions to all eligible Medicaid enrollees within their state Medicaid programs. Endari is also reimbursable by many commercial payors.