ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Greenfire Resources's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 1.83%.
As of today (2026-06-26), Greenfire Resources's WACC % is 9.87%. Greenfire Resources's ROC % is 3.07% (calculated using TTM income statement data).
Greenfire Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Greenfire Resources (NYSE:GFR) 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, Greenfire Resources's WACC % is 9.87%. Greenfire Resources's ROC % is 3.07% (calculated using TTM income statement data).
Greenfire 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.
Greenfire Resources ROC % Related Terms
Greenfire Resources ROC % Historical Data
* Premium members only.
The historical data trend for Greenfire 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 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.
Greenfire Resources (GFR) has a ROC % of 1.83% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Greenfire Resources and its competitors.
Is Greenfire Resources' ROC % too high?
Greenfire Resources' current ROC % is 1.83%. The Oil & Gas industry median ROC % is 3.63. Greenfire Resources' value of 1.83% is 49.6% below this industry median. Overall, Greenfire Resources has a GF Score™ of 34/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Greenfire Resources' ROC % compare to TXO and VTS?
Greenfire Resources' ROC % of 1.83% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.63. Greenfire Resources' value of 1.83% is 49.6% below 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 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. Greenfire Resources's current ROC % of 1.83% is 49.6% below 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 Greenfire 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. Greenfire Resources's current ROC % is 1.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Greenfire Resources stock overvalued right now?
Based on GuruFocus' analysis, Greenfire Resources (GFR) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.45, compared to a current price of $5.58 — trading 61.7% above its estimated fair value. The current ROC % is 1.83% and 49.6% below the Oil & Gas industry median of 3.63. Greenfire Resources' overall GF Score™ is 34/100 with 4 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 Greenfire Resources (GFR), the current ROC % is 1.83% 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 Greenfire Resources (GFR) Overvalued in 2026?
Based on GuruFocus' analysis, Greenfire Resources stock appears to be overvalued.
The current stock price of $5.58 is trading 61.7% above its estimated GF Value™ of $3.45.
GuruFocus considers Greenfire Resources to be Significantly Overvalued.
Key valuation signals for GFR:
ROC %: 1.83%
GF Value™: $3.45 vs. price of $5.58 (61.7% above fair value)
Industry Position: 49.6% below the Oil & Gas median
No single metric tells the full story. See the GFR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Greenfire Resources Ltd explores, acquires, develops and produces oil and gas in the Canadian energy sector and internationally. Greenfire currently has two producing oil sand assets, Hangingstone Expansion and Hangingstone Demo. The company has one reportable operating segment which is made up of its oil sands operations based on geographic location : Athabasca oil sands region of Alberta, Canada, nature of the products sold and integration of facilities and operations. The company is actively developing its Hangingstone Facilities using SAGD, an enhanced oil recovery extraction method.
34GF Score
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