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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 %. Green Brick Partners's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 13.65%.
As of today (2026-08-20), Green Brick Partners's WACC % is 12.78%. Green Brick Partners's ROC % is 13.57% (calculated using TTM income statement data).
Green Brick Partners 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.
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, Green Brick Partners's WACC % is 12.78%. Green Brick Partners's ROC % is 13.57% (calculated using TTM income statement data).
Green Brick Partners 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.
* 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 (Jun. 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.
Green Brick Partners (FRA:2G1) has a ROC % of 13.65% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Green Brick Partners and its competitors.
Is Green Brick Partners' ROC % too high?
Green Brick Partners' current ROC % is 13.65%. The Homebuilding & Construction industry median ROC % is 4.41. Green Brick Partners' value of 13.65% is 209.5% above this industry median. Overall, Green Brick Partners has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Green Brick Partners' ROC % compare to KBH and MHO?
Green Brick Partners' ROC % of 13.65% can be compared against companies in the Homebuilding & Construction industry. The industry median ROC % is 4.41. Green Brick Partners' value of 13.65% is 209.5% 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 Homebuilding & Construction company?
The median ROC % among Homebuilding & Construction companies is 4.41, based on 93 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. Green Brick Partners's current ROC % of 13.65% is 209.5% 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 Green Brick Partners and its competitors. For the Homebuilding & Construction industry, the median ROC % is 4.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Green Brick Partners's current ROC % is 13.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Green Brick Partners stock overvalued right now?
Based on GuruFocus' analysis, Green Brick Partners (FRA:2G1) is currently considered Modestly Overvalued. The stock's GF Value™ is €52.73, compared to a current price of €59.10 — trading 12.1% above its estimated fair value. The current ROC % is 13.65% and 209.5% above the Homebuilding & Construction industry median of 4.41. Green Brick Partners' overall GF Score™ is 91/100 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 Green Brick Partners (FRA:2G1), the current ROC % is 13.65% as of Jun. 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 Green Brick Partners (FRA:2G1) Overvalued in 2026?
Based on GuruFocus' analysis, Green Brick Partners stock appears to be overvalued.
The current stock price of €59.10 is trading 12.1% above its estimated GF Value™ of €52.73.
GuruFocus considers Green Brick Partners to be Modestly Overvalued.
Key valuation signals for FRA:2G1:
ROC %: 13.65%
GF Value™: €52.73 vs. price of €59.10 (12.1% above fair value)
Industry Position: 209.5% above the Homebuilding & Construction median
No single metric tells the full story. See the FRA:2G1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Green Brick Partners Inc is a homebuilding and land development company. It acquires and develops land, as well as provides land and construction financing to its controlled builders. The company has three reportable segments: builder operations central, builder operations southeast, and land development. The majority of the company's revenue is generated from the builder operations central segment, which is entirely the operations of builders in Texas. The company is engaged in various aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, sales, and brand image creation. In addition to homebuilding, the company provides home financing services, such as mortgages and title.
91GF Score
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