ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Heritage Global's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.47%.
As of today (2026-06-25), Heritage Global's WACC % is 4.37%. Heritage Global's ROC % is 4.92% (calculated using TTM income statement data).
Heritage Global 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.
Heritage Global (FRA:LGC) 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, Heritage Global's WACC % is 4.37%. Heritage Global's ROC % is 4.92% (calculated using TTM income statement data).
Heritage Global 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.
Heritage Global ROC % Related Terms
Heritage Global ROC % Historical Data
* Premium members only.
The historical data trend for Heritage Global'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.
Heritage Global (FRA:LGC) has a ROC % of 2.47% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Heritage Global and its competitors.
Is Heritage Global's ROC % too high?
Heritage Global's current ROC % is 2.47%. The Capital Markets industry median ROC % is 1.23. Heritage Global's value of 2.47% is 101.6% above this industry median. Overall, Heritage Global has a GF Score™ of 82/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Heritage Global's ROC % compare to MATH and GSIW?
Heritage Global's ROC % of 2.47% can be compared against companies in the Capital Markets industry. The industry median ROC % is 1.23. Heritage Global's value of 2.47% is 101.6% 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 Capital Markets company?
The median ROC % among Capital Markets companies is 1.23, based on 694 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. Heritage Global's current ROC % of 2.47% is 101.6% 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 Heritage Global and its competitors. For the Capital Markets industry, the median ROC % is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heritage Global's current ROC % is 2.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heritage Global stock overvalued right now?
Based on GuruFocus' analysis, Heritage Global (FRA:LGC) is currently considered Possible Value Trap. The stock's GF Value™ is €1.93, compared to a current price of €1.03 — trading 46.6% below its estimated fair value. The current ROC % is 2.47% and 101.6% above the Capital Markets industry median of 1.23. Heritage Global's overall GF Score™ is 82/100 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 Heritage Global (FRA:LGC), the current ROC % is 2.47% 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 Heritage Global (FRA:LGC) Overvalued in 2026?
Based on GuruFocus' analysis, Heritage Global stock appears to be undervalued.
The current stock price of €1.03 is trading 46.6% below its estimated GF Value™ of €1.93.
GuruFocus considers Heritage Global to be Possible Value Trap.
Key valuation signals for FRA:LGC:
ROC %: 2.47%
GF Value™: €1.93 vs. price of €1.03 (46.6% below fair value)
Industry Position: 101.6% above the Capital Markets median
No single metric tells the full story. See the FRA:LGC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Heritage Global Inc values and monetizes industrial and financial assets by providing acquisition, disposition, valuation, and lending services for surplus and distressed assets. It operates in four segments. The Auction and Liquidation segment, which operates as a full-service auction, appraisal, and asset advisory firm, includes the acquisition of turnkey manufacturing facilities and used industrial machinery and equipment. The Refurbishment & Resale segment acquires, refurbishes, and supplies specialized laboratory equipment. Brokerage segment, through NLEX, brokers charged-off receivables in the U.S. and Canada on behalf of financial institutions. The Specialty Lending segment, which provides specialty financing solutions to investors in charged-off and nonperforming asset portfolios.
82GF Score
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