ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Covivio Hotels's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 5.82%.
As of today (2026-06-27), Covivio Hotels's WACC % is 3.44%. Covivio Hotels's ROC % is 3.74% (calculated using TTM income statement data).
Covivio Hotels 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.
Covivio Hotels (FRA:9FM) 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, Covivio Hotels's WACC % is 3.44%. Covivio Hotels's ROC % is 3.74% (calculated using TTM income statement data).
Covivio Hotels 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.
Covivio Hotels ROC % Related Terms
Covivio Hotels ROC % Historical Data
* Premium members only.
The historical data trend for Covivio Hotels'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.
Covivio Hotels (FRA:9FM) has a ROC % of 5.82% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Covivio Hotels and its competitors.
Is Covivio Hotels' ROC % too high?
Covivio Hotels' current ROC % is 5.82%. The REITs industry median ROC % is 3.74. Covivio Hotels' value of 5.82% is 55.6% above this industry median. Overall, Covivio Hotels has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does Covivio Hotels' ROC % compare to HST and RHP?
Covivio Hotels' ROC % of 5.82% can be compared against companies in the REITs industry. The industry median ROC % is 3.74. Covivio Hotels' value of 5.82% is 55.6% 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 REITs company?
The median ROC % among REITs companies is 3.74, based on 749 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. Covivio Hotels's current ROC % of 5.82% is 55.6% 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 Covivio Hotels and its competitors. For the REITs industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Covivio Hotels's current ROC % is 5.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Covivio Hotels stock overvalued right now?
Covivio Hotels (FRA:9FM) has a current ROC % of 5.82%. The stock's GF Value™ is €26.38, compared to a current price of €22.40 — trading 15.1% below its estimated fair value. The current ROC % is 5.82% and 55.6% above the REITs industry median of 3.74. Covivio Hotels' overall GF Score™ is 78/100 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 Covivio Hotels (FRA:9FM), the current ROC % is 5.82% 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 Covivio Hotels (FRA:9FM) Overvalued in 2026?
Based on GuruFocus' analysis, Covivio Hotels stock appears to be undervalued.
The current stock price of €22.40 is trading 15.1% below its estimated GF Value™ of €26.38.
Key valuation signals for FRA:9FM:
ROC %: 5.82%
GF Value™: €26.38 vs. price of €22.40 (15.1% below fair value)
No single metric tells the full story. See the FRA:9FM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Covivio Hotels is engaged in the real estate sector. The company functions as a real estate investment trust, with special emphasis in the holding and management of real estate assets particularly in the hotel sector. Its investment portfolio includes hotels, massage therapy institutes, clinics, garden centers and leisure villages located in Europe.
78GF Score
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