ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Earth Science Tech's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 99.74%.
As of today (2026-06-28), Earth Science Tech's WACC % is 26.27%. Earth Science Tech's ROC % is 74.51% (calculated using TTM income statement data).
Earth Science Tech generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Earth Science Tech (OTCPK:ETST) 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, Earth Science Tech's WACC % is 26.27%. Earth Science Tech's ROC % is 74.51% (calculated using TTM income statement data).
Earth Science Tech generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Earth Science Tech ROC % Related Terms
Earth Science Tech ROC % Historical Data
* Premium members only.
The historical data trend for Earth Science Tech'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.
Earth Science Tech (ETST) has a ROC % of 99.74% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Earth Science Tech and its competitors.
Is Earth Science Tech's ROC % too high?
Earth Science Tech's current ROC % is 99.74%. The Drug Manufacturers industry median ROC % is 4.46. Earth Science Tech's value of 99.74% is 2136.3% above this industry median. Overall, Earth Science Tech has a GF Score™ of 37/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Earth Science Tech's ROC % compare to SCYX and INIS?
Earth Science Tech's ROC % of 99.74% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.46. Earth Science Tech's value of 99.74% is 2136.3% 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 Drug Manufacturers company?
The median ROC % among Drug Manufacturers companies is 4.46, based on 982 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. Earth Science Tech's current ROC % of 99.74% is 2136.3% 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 Earth Science Tech and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Earth Science Tech's current ROC % is 99.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Earth Science Tech stock overvalued right now?
Based on GuruFocus' analysis, Earth Science Tech (ETST) is currently considered Possible Value Trap. The stock's GF Value™ is $0.23, compared to a current price of $0.16 — trading 30.4% below its estimated fair value. The current ROC % is 99.74% and 2136.3% above the Drug Manufacturers industry median of 4.46. Earth Science Tech's overall GF Score™ is 37/100 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 Earth Science Tech (ETST), the current ROC % is 99.74% 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 Earth Science Tech (ETST) Overvalued in 2026?
Based on GuruFocus' analysis, Earth Science Tech stock appears to be undervalued.
The current stock price of $0.16 is trading 30.4% below its estimated GF Value™ of $0.23.
GuruFocus considers Earth Science Tech to be Possible Value Trap.
Key valuation signals for ETST:
ROC %: 99.74%
GF Value™: $0.23 vs. price of $0.16 (30.4% below fair value)
Industry Position: 2136.3% above the Drug Manufacturers median
No single metric tells the full story. See the ETST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Earth Science Tech Inc is a diversified holding company. The company focuses on the health and wellness sector. The Company's principal operating plan is to build a vertically integrated healthcare platform that combines compounding pharmacy operations, telemedicine platforms, clinical support, and direct-to-patient fulfillment. The Company's healthcare operations are supported by investments in real estate and asset management activities and a consumer products business. The core of the Company's value proposition is the seamless integration of patient care, from consultation to fulfillment.
37GF Score
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