ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Martifer SGPS's annualized return on capital (ROC %) for the quarter that ended in Jun. 2025 was 6.60%.
As of today (2026-06-26), Martifer SGPS's WACC % is 7.21%. Martifer SGPS's ROC % is 8.97% (calculated using TTM income statement data).
Martifer SGPS 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.
Martifer SGPS (FRA:FRW) 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, Martifer SGPS's WACC % is 7.21%. Martifer SGPS's ROC % is 8.97% (calculated using TTM income statement data).
Martifer SGPS 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.
Martifer SGPS ROC % Related Terms
Martifer SGPS ROC % Historical Data
* Premium members only.
The historical data trend for Martifer SGPS'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 (Jun. 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.
Martifer SGPS (FRA:FRW) has a ROC % of 6.60% as of Jun. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Martifer SGPS and its competitors.
Is Martifer SGPS's ROC % too high?
Martifer SGPS's current ROC % is 6.60%. The Construction industry median ROC % is 4.65. Martifer SGPS's value of 6.60% is 41.9% above this industry median. Overall, Martifer SGPS has a GF Score™ of 59/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Martifer SGPS's ROC % compare to PWR and FIX?
Martifer SGPS's ROC % of 6.60% can be compared against companies in the Construction industry. The industry median ROC % is 4.65. Martifer SGPS's value of 6.60% is 41.9% 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 Construction company?
The median ROC % among Construction companies is 4.65, based on 1,755 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. Martifer SGPS's current ROC % of 6.60% is 41.9% 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 Martifer SGPS and its competitors. For the Construction industry, the median ROC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Martifer SGPS's current ROC % is 6.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Martifer SGPS stock overvalued right now?
Based on GuruFocus' analysis, Martifer SGPS (FRA:FRW) is currently considered Modestly Overvalued. The stock's GF Value™ is €1.99, compared to a current price of €2.33 — trading 17.1% above its estimated fair value. The current ROC % is 6.60% and 41.9% above the Construction industry median of 4.65. Martifer SGPS's overall GF Score™ is 59/100 with 7 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 Martifer SGPS (FRA:FRW), the current ROC % is 6.60% as of Jun. 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 Martifer SGPS (FRA:FRW) Overvalued in 2026?
Based on GuruFocus' analysis, Martifer SGPS stock appears to be overvalued.
The current stock price of €2.33 is trading 17.1% above its estimated GF Value™ of €1.99.
GuruFocus considers Martifer SGPS to be Modestly Overvalued.
Key valuation signals for FRA:FRW:
ROC %: 6.60%
GF Value™: €1.99 vs. price of €2.33 (17.1% above fair value)
Industry Position: 41.9% above the Construction median
No single metric tells the full story. See the FRA:FRW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Martifer SGPS SA is Portugal based holding company. Along with its subsidiaries, the firm operates in three business divisions: Metallic Constructions, which provides metallic constructions, aluminum and glass facades, and infrastructures for oil & gas; Naval Industry segment includes shipbuilding as well as the rendering of ship repair and ship conversion services; and Renewables segment includes the promotion and development of renewable energy projects, with special focus on the wind energy sector. Its geographical segments are Iberian Peninsula, Central Europe, and Other markets.
59GF Score
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