BPZ Resources (FRA:NA4) ROC %: -10.33% (As of Mar. 2015)


What is BPZ Resources ROC %?

BPZ Resources FRA:NA4 ROC % is -10.33% as of Mar. 2015. The stock has 2 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. BPZ Resources's annualized return on capital (ROC %) for the quarter that ended in Mar. 2015 was -10.33%.

As of today (2026-06-27), BPZ Resources's WACC % is 10.31%. BPZ Resources's ROC % is -34.52% (calculated using TTM income statement data). BPZ Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

BPZ Resources  (FRA:NA4) 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, BPZ Resources's WACC % is 10.31%. BPZ Resources's ROC % is -34.52% (calculated using TTM income statement data). BPZ Resources 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.

BPZ Resources ROC % Related Terms

BPZ Resources ROC % Historical Data

* Premium members only.

The historical data trend for BPZ Resources'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.

BPZ Resources ROC % Chart

BPZ Resources Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -15.20 -2.74 -4.88 -8.90 -15.62

BPZ Resources Quarterly Data
Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.35 4.49 -43.98 -24.64 -10.33

BPZ Resources ROC % Calculation

BPZ Resources's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2014 is calculated as:

ROC % (A: Dec. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2013 ) + Invested Capital (A: Dec. 2014 ))/ count )
=-46.774 * ( 1 - 0% )/( (240.8 + 358.198)/ 2 )
=-46.774/299.499
=-15.62 %

where

Invested Capital(A: Dec. 2013 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=296.927 - 14.229 - ( 41.898 - max(0, 32.132 - 84.451+41.898))
=240.8

Invested Capital(A: Dec. 2014 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=236.293 - 12.803 - ( 50.403 - max(0, 204.885 - 70.177+50.403))
=358.198

BPZ Resources's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2015 is calculated as:

ROC % (Q: Mar. 2015 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2014 ) + Invested Capital (Q: Mar. 2015 ))/ count )
=-30.056 * ( 1 - 0% )/( (358.198 + 223.531)/ 2 )
=-30.056/290.8645
=-10.33 %

where

Invested Capital(Q: Dec. 2014 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=236.293 - 12.803 - ( 50.403 - max(0, 204.885 - 70.177+50.403))
=358.198

Invested Capital(Q: Mar. 2015 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=254.55 - 11.65 - ( 25.884 - max(0, 30.059 - 49.428+25.884))
=223.531

Note: The Operating Income data used here is four times the quarterly (Mar. 2015) 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -10.33% mean?
BPZ Resources (FRA:NA4) has a ROC % of -10.33% as of Mar. 2015. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on BPZ Resources and its competitors.
Is BPZ Resources' ROC % too high?
BPZ Resources' current ROC % is -10.33%.
How does BPZ Resources' ROC % compare to competitors?
BPZ Resources' ROC % of -10.33% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.63. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Oil & Gas company?
The median ROC % among Oil & Gas companies is 3.63, based on 997 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 BPZ Resources and its competitors. For the Oil & Gas industry, the median ROC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BPZ Resources's current ROC % is -10.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BPZ Resources stock overvalued right now?
BPZ Resources (FRA:NA4) has a current ROC % of -10.33%. The current ROC % is -10.33%. 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 BPZ Resources (FRA:NA4), the current ROC % is -10.33% as of Mar. 2015. 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.

BPZ Resources Business Description

Industry EnergyOil & Gas
BPZ Resources Inc is a Texas corporation, incorporated in 1993. The Company is an independent oil and gas company engaged in the exploration, development and production of oil and natural gas in Peru and Ecuador. The Company is in the process of developing its Peruvian oil and gas reserves. It has completed the installation of the new CX-15 platform in the Corvina field to continue the development of the field and continued its drilling campaign there with completion of the CX-15-1D well. The customer of the Company is Peruvian national oil company, Petroleos del Peru - PETROPERU S.A.