ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Enstar Group's annualized return on capital (ROC %) for the quarter that ended in Mar. 2025 was 1.62%.
As of today (2026-07-01), Enstar Group's WACC % is 8.55%. Enstar Group's ROC % is 3.09% (calculated using TTM income statement data).
Enstar Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Enstar Group (OTCPK:ESGOF.PFD) 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, Enstar Group's WACC % is 8.55%. Enstar Group's ROC % is 3.09% (calculated using TTM income statement data).
Enstar 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.
Enstar Group ROC % Related Terms
Enstar Group ROC % Historical Data
* Premium members only.
The historical data trend for Enstar 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 EBIT data used here is four times the quarterly (Mar. 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.
Enstar Group (ESGOF.PFD) has a ROC % of 1.62% as of Mar. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Enstar Group and its competitors.
Is Enstar Group's ROC % too high?
Enstar Group's current ROC % is 1.62%. The Insurance industry median ROC % is 3.36. Enstar Group's value of 1.62% is 51.8% below this industry median.
How does Enstar Group's ROC % compare to FIHL and IGIC?
Enstar Group's ROC % of 1.62% can be compared against companies in the Insurance industry. The industry median ROC % is 3.36. Enstar Group's value of 1.62% is 51.8% below 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 an Insurance company?
The median ROC % among Insurance companies is 3.36, based on 371 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. Enstar Group's current ROC % of 1.62% is 51.8% below 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 Enstar Group and its competitors. For the Insurance industry, the median ROC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Enstar Group's current ROC % is 1.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Enstar Group stock overvalued right now?
Enstar Group (ESGOF.PFD) has a current ROC % of 1.62%. The current ROC % is 1.62% and 51.8% below the Insurance industry median of 3.36. 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 Enstar Group (ESGOF.PFD), the current ROC % is 1.62% as of Mar. 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.
Enstar Group Ltd is a (re)insurance group that offers capital release solutions through its network of group companies. It seeks to create value by managing (re)insurance companies and portfolios of (re)insurance and other liability businesses in run-off and striving to generate an attractive risk-adjusted return from its investment portfolio. Its operations are through two reportable segments: Run-off segment and Investments segment.
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