ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Ebro Foods's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 6.87%.
As of today (2026-06-28), Ebro Foods's WACC % is 4.98%. Ebro Foods's ROC % is 6.95% (calculated using TTM income statement data).
Ebro Foods 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.
Ebro Foods (FRA:AZU) 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, Ebro Foods's WACC % is 4.98%. Ebro Foods's ROC % is 6.95% (calculated using TTM income statement data).
Ebro Foods 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.
Ebro Foods ROC % Related Terms
Ebro Foods ROC % Historical Data
* Premium members only.
The historical data trend for Ebro Foods'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.
Ebro Foods (FRA:AZU) has a ROC % of 6.87% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Ebro Foods and its competitors.
Is Ebro Foods' ROC % too high?
Ebro Foods' current ROC % is 6.87%. The Consumer Packaged Goods industry median ROC % is 5.13. Ebro Foods' value of 6.87% is 33.9% above this industry median. Overall, Ebro Foods has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ebro Foods' ROC % compare to KHC and GIS?
Ebro Foods' ROC % of 6.87% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROC % is 5.13. Ebro Foods' value of 6.87% is 33.9% 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 Consumer Packaged Goods company?
The median ROC % among Consumer Packaged Goods companies is 5.13, based on 1,945 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. Ebro Foods's current ROC % of 6.87% is 33.9% 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 Ebro Foods and its competitors. For the Consumer Packaged Goods industry, the median ROC % is 5.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ebro Foods's current ROC % is 6.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ebro Foods stock overvalued right now?
Based on GuruFocus' analysis, Ebro Foods (FRA:AZU) is currently considered Modestly Overvalued. The stock's GF Value™ is €16.08, compared to a current price of €17.96 — trading 11.7% above its estimated fair value. The current ROC % is 6.87% and 33.9% above the Consumer Packaged Goods industry median of 5.13. Ebro Foods' overall GF Score™ is 69/100 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 Ebro Foods (FRA:AZU), the current ROC % is 6.87% 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 Ebro Foods (FRA:AZU) Overvalued in 2026?
Based on GuruFocus' analysis, Ebro Foods stock appears to be overvalued.
The current stock price of €17.96 is trading 11.7% above its estimated GF Value™ of €16.08.
GuruFocus considers Ebro Foods to be Modestly Overvalued.
Key valuation signals for FRA:AZU:
ROC %: 6.87%
GF Value™: €16.08 vs. price of €17.96 (11.7% above fair value)
Industry Position: 33.9% above the Consumer Packaged Goods median
No single metric tells the full story. See the FRA:AZU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ebro Foods SA is a Spanish international food group operating in the pasta, rice, and sauces segments. The company is present in more than 25 countries in Europe, North America, Asia, and Africa, through its wide network of subsidiaries and brands. The core businesses are rice and pasta, offered in dry, fresh, precooked, and frozen varieties. Aside from pasta and rice, Ebro Food offers ready meals, fresh potato, sauces among others. The largest geographical segment for the rice division is in Europe, followed by North America, Asia, and Africa. Pasta, sauces, and other products, accounting for almost half of revenue, are mainly present in Europe and North America.
69GF Score
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