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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 %. Estre Ambiental's annualized return on capital (ROC %) for the quarter that ended in Jun. 2019 was 1.17%.
As of today (2026-08-02), Estre Ambiental's WACC % is 0.00%. Estre Ambiental's ROC % is 0.00% (calculated using TTM income statement data).
Estre Ambiental earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Estre Ambiental's WACC % is 0.00%. Estre Ambiental's ROC % is 0.00% (calculated using TTM income statement data).
Estre Ambiental 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.
Estre Ambiental ROC % Related Terms
Estre Ambiental ROC % Historical Data
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The historical data trend for Estre Ambiental'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 (Jun. 2019) 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.
Estre Ambiental (ESTRF) has a ROC % of 1.17% as of Jun. 2019. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Estre Ambiental and its competitors.
Is Estre Ambiental's ROC % too high?
Estre Ambiental's current ROC % is 1.17%. The Waste Management industry median ROC % is 3.63. Estre Ambiental's value of 1.17% is 67.8% below this industry median.
How does Estre Ambiental's ROC % compare to OCLN and HDII?
Estre Ambiental's ROC % of 1.17% can be compared against companies in the Waste Management industry. The industry median ROC % is 3.63. Estre Ambiental's value of 1.17% is 67.8% 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 a Waste Management company?
The median ROC % among Waste Management companies is 3.63, based on 243 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. Estre Ambiental's current ROC % of 1.17% is 67.8% 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 Estre Ambiental and its competitors. For the Waste Management industry, the median ROC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Estre Ambiental's current ROC % is 1.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Estre Ambiental stock overvalued right now?
Estre Ambiental (ESTRF) has a current ROC % of 1.17%. The current ROC % is 1.17% and 67.8% below the Waste Management industry median of 3.63. 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 Estre Ambiental (ESTRF), the current ROC % is 1.17% as of Jun. 2019. 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.
Estre Ambiental Inc waste management company in Brazil which operates in the Southeast, South and Northeast regions of Brazil. It operates its own landfills and is engaged in the final treatment of hazardous wastes, temporary storage of waste, collection and burning of landfill biogas, environmental consulting services, recycling, reverse manufacturing of electrical and electronic devices and waste collection, among others activities. The operations are grouped into four business segments Collection and Cleaning Services; Landfills; Oil and Gas; and Value Recovery. It generates a vast majority of its revenue from the collection and cleaning services segment.
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