ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Biofrontera AG's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 0.23%.
As of today (2026-06-28), Biofrontera AG's WACC % is 1.19%. Biofrontera AG's ROC % is -7.47% (calculated using TTM income statement data).
Biofrontera AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Biofrontera AG (FRA:B8FK) 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, Biofrontera AG's WACC % is 1.19%. Biofrontera AG's ROC % is -7.47% (calculated using TTM income statement data).
Biofrontera AG 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.
Biofrontera AG ROC % Related Terms
Biofrontera AG ROC % Historical Data
* Premium members only.
The historical data trend for Biofrontera AG'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.
Biofrontera AG (FRA:B8FK) has a ROC % of 0.23% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Biofrontera AG and its competitors.
Is Biofrontera AG's ROC % too high?
Biofrontera AG's current ROC % is 0.23%. The Drug Manufacturers industry median ROC % is 4.46. Biofrontera AG's value of 0.23% is 94.8% below this industry median. Overall, Biofrontera AG has a GF Score™ of 58/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Biofrontera AG's ROC % compare to ZTS and UTHR?
Biofrontera AG's ROC % of 0.23% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.46. Biofrontera AG's value of 0.23% is 94.8% 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 a Drug Manufacturers company?
The median ROC % among Drug Manufacturers companies is 4.46, based on 982 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. Biofrontera AG's current ROC % of 0.23% is 94.8% 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 Biofrontera AG and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Biofrontera AG's current ROC % is 0.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Biofrontera AG stock overvalued right now?
Based on GuruFocus' analysis, Biofrontera AG (FRA:B8FK) is currently considered Fairly Valued. The stock's GF Value™ is €2.29, compared to a current price of €2.21 — trading 3.5% below its estimated fair value. The current ROC % is 0.23% and 94.8% below the Drug Manufacturers industry median of 4.46. Biofrontera AG's overall GF Score™ is 58/100 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 Biofrontera AG (FRA:B8FK), the current ROC % is 0.23% 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 Biofrontera AG (FRA:B8FK) Overvalued in 2026?
Based on GuruFocus' analysis, Biofrontera AG stock appears to be undervalued.
The current stock price of €2.21 is trading 3.5% below its estimated GF Value™ of €2.29.
GuruFocus considers Biofrontera AG to be Fairly Valued.
Key valuation signals for FRA:B8FK:
ROC %: 0.23%
GF Value™: €2.29 vs. price of €2.21 (3.5% below fair value)
Industry Position: 94.8% below the Drug Manufacturers median
No single metric tells the full story. See the FRA:B8FK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Biofrontera AG is active in the field of healthcare. It manufactures pharmaceutical products, especially medical cosmetics and dermatological drugs for the care and treatment of skin diseases. Its suite of products includes the prescription drugs Ameluz and BF-RhodoLED and BF-RhodoLED XL, for the treatment of actinic keratosis and Belixos, for the regenerative care of reddened and inflamed skin. Geographically, the company generates maximum revenue from Germany, and the rest from Spain, the United Kingdom, the rest of Europe, and other regions.
58GF Score
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