ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Cinclus Pharma Holding AB's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -290.61%.
As of today (2026-06-27), Cinclus Pharma Holding AB's WACC % is 8.96%. Cinclus Pharma Holding AB's ROC % is -287.78% (calculated using TTM income statement data).
Cinclus Pharma Holding AB earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Cinclus Pharma Holding AB (FRA:J8P) 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, Cinclus Pharma Holding AB's WACC % is 8.96%. Cinclus Pharma Holding AB's ROC % is -287.78% (calculated using TTM income statement data).
Cinclus Pharma Holding AB 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.
* 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.
Cinclus Pharma Holding AB (FRA:J8P) has a ROC % of -290.61% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Cinclus Pharma Holding AB and its competitors.
Is Cinclus Pharma Holding AB's ROC % too high?
Cinclus Pharma Holding AB's current ROC % is -290.61%. Overall, Cinclus Pharma Holding AB has a GF Score™ of 6/100, reflecting its overall financial health beyond just this single metric.
How does Cinclus Pharma Holding AB's ROC % compare to ZTS?
Cinclus Pharma Holding AB's ROC % of -290.61% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.44. 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 4.44, based on 985 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. 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 Cinclus Pharma Holding AB and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cinclus Pharma Holding AB's current ROC % is -290.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cinclus Pharma Holding AB stock overvalued right now?
Cinclus Pharma Holding AB (FRA:J8P) has a current ROC % of -290.61%. The current ROC % is -290.61%. Cinclus Pharma Holding AB's overall GF Score™ is 6/100 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 Cinclus Pharma Holding AB (FRA:J8P), the current ROC % is -290.61% 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.
Cinclus Pharma Holding AB is a Swedish clinical-stage pharmaceutical company focused on developing small-molecule treatments for gastric acid-related diseases. Its candidate, linaprazan glurate, is being developed for the treatment of severe gastroesophageal reflux disease, including erosive forms. The company is also developing a dual therapy treatment with an antibiotic targeting Helicobacter pylori, a bacterium found in the gastric and duodenal mucosa. Its primary target population consists of patients with severe erosive gastroesophageal reflux disease, where current treatment options are limited. It operates in Switzerland, Sweden, and the Czech Republic, with the majority of revenue from the Czech Republic.
6GF Score
Get the complete analysis for FRA:J8P
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:J8P has been successfully added to your 
