ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Stanmore Resources's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 15.26%.
As of today (2026-06-27), Stanmore Resources's WACC % is 3.84%. Stanmore Resources's ROC % is 4.80% (calculated using TTM income statement data).
Stanmore Resources 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.
Stanmore Resources (FRA:S0D) 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, Stanmore Resources's WACC % is 3.84%. Stanmore Resources's ROC % is 4.80% (calculated using TTM income statement data).
Stanmore Resources 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.
Stanmore Resources ROC % Related Terms
Stanmore Resources ROC % Historical Data
* Premium members only.
The historical data trend for Stanmore 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.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) 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.
Stanmore Resources (FRA:S0D) has a ROC % of 15.26% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Stanmore Resources and its competitors.
Is Stanmore Resources' ROC % too high?
Stanmore Resources' current ROC % is 15.26%. The Steel industry median ROC % is 2.63. Stanmore Resources' value of 15.26% is 481.3% above this industry median. Overall, Stanmore Resources has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Stanmore Resources' ROC % compare to HCC and AMR?
Stanmore Resources' ROC % of 15.26% can be compared against companies in the Steel industry. The industry median ROC % is 2.63. Stanmore Resources' value of 15.26% is 481.3% 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 Steel company?
The median ROC % among Steel companies is 2.63, based on 624 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. Stanmore Resources's current ROC % of 15.26% is 481.3% 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 Stanmore Resources and its competitors. For the Steel industry, the median ROC % is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stanmore Resources's current ROC % is 15.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stanmore Resources stock overvalued right now?
Based on GuruFocus' analysis, Stanmore Resources (FRA:S0D) is currently considered Fairly Valued. The stock's GF Value™ is €1.28, compared to a current price of €1.39 — trading 8.6% above its estimated fair value. The current ROC % is 15.26% and 481.3% above the Steel industry median of 2.63. Stanmore Resources' overall GF Score™ is 79/100 with 2 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 Stanmore Resources (FRA:S0D), the current ROC % is 15.26% as of Dec. 2025. 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 Stanmore Resources (FRA:S0D) Overvalued in 2026?
Based on GuruFocus' analysis, Stanmore Resources stock appears to be overvalued.
The current stock price of €1.39 is trading 8.6% above its estimated GF Value™ of €1.28.
GuruFocus considers Stanmore Resources to be Fairly Valued.
Key valuation signals for FRA:S0D:
ROC %: 15.26%
GF Value™: €1.28 vs. price of €1.39 (8.6% above fair value)
No single metric tells the full story. See the FRA:S0D stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Stanmore Resources Ltd is an Australian resources company that is engaged in the exploration, development, production, and sale of metallurgical coal in Queensland, Australia with operations and exploration projects in the Bowen and Surat Basins. The company's portfolio of existing operations includes the Isaac Plains Complex in Queensland's Bowen Basin region, South Walker Creek, and the Poitrel open-cut coal mine. It also holds ownership interests in several other exploration projects, such as the Lilyvale project, Mackenzie, Lancewood, the Isaac Downs Extension, the Range, Belview, the Isaac Plains Underground, and the Clifford project. Geographically, the company derives maximum revenue from the sale of metallurgical coal in Asia, followed by Europe and South America.
79GF Score
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