ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Eqva ASA's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 0.19%.
As of today (2026-06-27), Eqva ASA's WACC % is 9.35%. Eqva ASA's ROC % is 4.71% (calculated using TTM income statement data).
Eqva ASA earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Eqva ASA (FRA:1H2) 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, Eqva ASA's WACC % is 9.35%. Eqva ASA's ROC % is 4.71% (calculated using TTM income statement data).
Eqva ASA 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.
Eqva ASA ROC % Related Terms
Eqva ASA ROC % Historical Data
* Premium members only.
The historical data trend for Eqva ASA'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.
Eqva ASA (FRA:1H2) has a ROC % of 0.19% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Eqva ASA and its competitors.
Is Eqva ASA's ROC % too high?
Eqva ASA's current ROC % is 0.19%. The Utilities - Independent Power Producers industry median ROC % is 2.27. Eqva ASA's value of 0.19% is 91.6% below this industry median. Overall, Eqva ASA has a GF Score™ of 58/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eqva ASA's ROC % compare to competitors?
Eqva ASA's ROC % of 0.19% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROC % is 2.27. Eqva ASA's value of 0.19% is 91.6% 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 Utilities - Independent Power Producers company?
The median ROC % among Utilities - Independent Power Producers companies is 2.27, based on 430 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. Eqva ASA's current ROC % of 0.19% is 91.6% 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 Eqva ASA and its competitors. For the Utilities - Independent Power Producers industry, the median ROC % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eqva ASA's current ROC % is 0.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eqva ASA stock overvalued right now?
Based on GuruFocus' analysis, Eqva ASA (FRA:1H2) is currently considered Significantly Undervalued. The stock's GF Value™ is €0.50, compared to a current price of €0.25 — trading 51% below its estimated fair value. The current ROC % is 0.19% and 91.6% below the Utilities - Independent Power Producers industry median of 2.27. Eqva ASA's overall GF Score™ is 58/100 with 3 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 Eqva ASA (FRA:1H2), the current ROC % is 0.19% 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 Eqva ASA (FRA:1H2) Overvalued in 2026?
Based on GuruFocus' analysis, Eqva ASA stock appears to be undervalued.
The current stock price of €0.25 is trading 51% below its estimated GF Value™ of €0.50.
GuruFocus considers Eqva ASA to be Significantly Undervalued.
Key valuation signals for FRA:1H2:
ROC %: 0.19%
GF Value™: €0.50 vs. price of €0.25 (51% below fair value)
Industry Position: 91.6% below the Utilities - Independent Power Producers median
No single metric tells the full story. See the FRA:1H2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eqva ASA is a Norway-based industrial investment company that acquires and develops companies providing productive, safe, and sustainable services and solutions to industrial customers. The Group operates through three main business segments: Industrial Solutions, Renewables, and Real Estate. The Industrial Solutions segment, which generates the majority of revenue, provides mechanical and electrical industrial services through companies including BKS Group, IMTAS Group, Austevoll Rorteknikk, and Kvinnherad Elektro. The Renewables segment develops and operates small-scale hydropower plants in Norway through Fossberg Kraft. The Real Estate segment includes the Group's real estate properties and development plans.
58GF Score
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