Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. ReVolve Renewable Power's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -56.90%.
As of today (2026-08-02), ReVolve Renewable Power's WACC % is 11.08%. ReVolve Renewable Power's ROC % is -24.38% (calculated using TTM income statement data).
ReVolve Renewable Power earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ReVolve Renewable Power (FRA:PM7) 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, ReVolve Renewable Power's WACC % is 11.08%. ReVolve Renewable Power's ROC % is -24.38% (calculated using TTM income statement data).
ReVolve Renewable Power 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.
ReVolve Renewable Power (FRA:PM7) has a ROC % of -56.90% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on ReVolve Renewable Power and its competitors.
Is ReVolve Renewable Power's ROC % too high?
ReVolve Renewable Power's current ROC % is -56.90%. Overall, ReVolve Renewable Power has a GF Score™ of 34/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ReVolve Renewable Power's ROC % compare to competitors?
ReVolve Renewable Power's ROC % of -56.90% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROC % is 2.26. 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 Utilities - Independent Power Producers company?
The median ROC % among Utilities - Independent Power Producers companies is 2.26, based on 434 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 ReVolve Renewable Power and its competitors. For the Utilities - Independent Power Producers industry, the median ROC % is 2.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ReVolve Renewable Power's current ROC % is -56.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ReVolve Renewable Power stock overvalued right now?
Based on GuruFocus' analysis, ReVolve Renewable Power (FRA:PM7) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.07, compared to a current price of €0.10 — trading 45.7% above its estimated fair value. The current ROC % is -56.90%. ReVolve Renewable Power's overall GF Score™ is 34/100 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 ReVolve Renewable Power (FRA:PM7), the current ROC % is -56.90% 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 ReVolve Renewable Power (FRA:PM7) Overvalued in 2026?
Based on GuruFocus' analysis, ReVolve Renewable Power stock appears to be overvalued.
The current stock price of €0.10 is trading 45.7% above its estimated GF Value™ of €0.07.
GuruFocus considers ReVolve Renewable Power to be Significantly Overvalued.
Key valuation signals for FRA:PM7:
ROC %: -56.90%
GF Value™: €0.07 vs. price of €0.10 (45.7% above fair value)
No single metric tells the full story. See the FRA:PM7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ReVolve Renewable Power Corp develops, owns, and operates renewable energy projects across the USA, Canada, and Mexico. The company operates through three business segments: utility-scale renewable energy generation focused on wind, solar, hydro, and battery storage; behind-the-meter distributed electricity generation, including rooftop solar, battery storage, and energy efficiency projects at customer premises; and corporate activities. Its operations span utility-scale projects in the USA, both utility-scale and distributed generation projects in Mexico, and utility-scale and corporate activities in Canada and other regions. The company also holds a majority interest in Box Springs Wind Corporation.
34GF Score
Get the complete analysis for FRA:PM7
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:PM7 has been successfully added to your 
