ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Gemfields Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -1.78%.
As of today (2026-06-26), Gemfields Group's WACC % is 5.14%. Gemfields Group's ROC % is -3.74% (calculated using TTM income statement data).
Gemfields Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Gemfields Group (FRA:5PH) 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, Gemfields Group's WACC % is 5.14%. Gemfields Group's ROC % is -3.74% (calculated using TTM income statement data).
Gemfields 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.
Gemfields Group ROC % Related Terms
Gemfields Group ROC % Historical Data
* Premium members only.
The historical data trend for Gemfields 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 Operating Income data used here is two times the semi-annual (Dec. 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.
Gemfields Group (FRA:5PH) has a ROC % of -1.78% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Gemfields Group and its competitors.
Is Gemfields Group's ROC % too high?
Gemfields Group's current ROC % is -1.78%. Overall, Gemfields Group has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Gemfields Group's ROC % compare to HL?
Gemfields Group's ROC % of -1.78% can be compared against companies in the Metals & Mining industry. 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 Metals & Mining company?
A good ROC % depends on the Metals & Mining industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Gemfields Group and its competitors. Gemfields Group's current ROC % is -1.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gemfields Group stock overvalued right now?
Based on GuruFocus' analysis, Gemfields Group (FRA:5PH) is currently considered Possible Value Trap. The stock's GF Value™ is €0.06, compared to a current price of €0.04 — trading 31.7% below its estimated fair value. The current ROC % is -1.78%. Gemfields Group's overall GF Score™ is 70/100 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 Gemfields Group (FRA:5PH), the current ROC % is -1.78% as of Dec. 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.
Is Gemfields Group (FRA:5PH) Overvalued in 2026?
Based on GuruFocus' analysis, Gemfields Group stock appears to be undervalued.
The current stock price of €0.04 is trading 31.7% below its estimated GF Value™ of €0.06.
GuruFocus considers Gemfields Group to be Possible Value Trap.
Key valuation signals for FRA:5PH:
ROC %: -1.78%
GF Value™: €0.06 vs. price of €0.04 (31.7% below fair value)
No single metric tells the full story. See the FRA:5PH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gemfields Group Ltd is a miner of coloured gemstones. The company is the operator and owner of both Kagem Mining Limited (Kagem) in Zambia and Montepuez Ruby Mining (MRM) in Mozambique. In addition, it holds controlling interests in various other gemstone mining and prospecting licences in Zambia, Mozambique, and Madagascar. Its operating segments include Kagem Mining Limited, its emerald and beryl mine, in Zambia, Africa; Montepuez Ruby Mining Limitada, its ruby and corundum mine, in Mozambique, Africa; Development assets comprises exploration activities in Africa and projects in Ethiopia and Madagascar; Corporate, and Others. It derives the majority of the revenue from the Kagem segment.
70GF Score
Get the complete analysis for FRA:5PH
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:5PH has been successfully added to your 
