ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Republic Airways Holdings's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.17%.
As of today (2026-06-29), Republic Airways Holdings's WACC % is 5.59%. Republic Airways Holdings's ROC % is 1.60% (calculated using TTM income statement data).
Republic Airways Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Republic Airways Holdings's WACC % is 5.59%. Republic Airways Holdings's ROC % is 1.60% (calculated using TTM income statement data).
Republic Airways Holdings 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.
Republic Airways Holdings (FRA:M2A0) has a ROC % of 6.17% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Republic Airways Holdings and its competitors.
Is Republic Airways Holdings' ROC % too high?
Republic Airways Holdings' current ROC % is 6.17%. The Transportation industry median ROC % is 4.69. Republic Airways Holdings' value of 6.17% is 31.6% above this industry median. Overall, Republic Airways Holdings has a GF Score™ of 32/100, reflecting its overall financial health beyond just this single metric.
How does Republic Airways Holdings' ROC % compare to FLYX and SRFM?
Republic Airways Holdings' ROC % of 6.17% can be compared against companies in the Transportation industry. The industry median ROC % is 4.69. Republic Airways Holdings' value of 6.17% is 31.6% 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 Transportation company?
The median ROC % among Transportation companies is 4.69, based on 986 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. Republic Airways Holdings's current ROC % of 6.17% is 31.6% 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 Republic Airways Holdings and its competitors. For the Transportation industry, the median ROC % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Republic Airways Holdings's current ROC % is 6.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Republic Airways Holdings stock overvalued right now?
Republic Airways Holdings (FRA:M2A0) has a current ROC % of 6.17%. The current ROC % is 6.17% and 31.6% above the Transportation industry median of 4.69. Republic Airways Holdings' overall GF Score™ is 32/100 with 5 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 Republic Airways Holdings (FRA:M2A0), the current ROC % is 6.17% 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.
Republic Airways Holdings Inc is a regional airline mainly in North America. The company provides scheduled passenger service through its mainline partnerships with American Airlines, Delta Air Lines, and United Airlines. Republic offers scheduled passenger service on several daily flights to various cities in the United States, Canada, Mexico, and the Caribbean. It exclusively operates the dual-class Embraer E170/175 family of aircraft, and provides its services under the American Eagle, Delta Connection, or United Express brands. The company is organized and operates as one operating and reportable segment: regional airline services.
32GF Score
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