ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Homerun Resources's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -85.66%.
As of today (2026-07-02), Homerun Resources's WACC % is 7.88%. Homerun Resources's ROC % is -135.55% (calculated using TTM income statement data).
Homerun Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Homerun Resources (OTCPK:HMRFF) 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, Homerun Resources's WACC % is 7.88%. Homerun Resources's ROC % is -135.55% (calculated using TTM income statement data).
Homerun 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.
Homerun Resources ROC % Related Terms
Homerun Resources ROC % Historical Data
* Premium members only.
The historical data trend for Homerun 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.
Homerun Resources (HMRFF) has a ROC % of -85.66% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Homerun Resources and its competitors.
Is Homerun Resources' ROC % too high?
Homerun Resources' current ROC % is -85.66%. Overall, Homerun Resources has a GF Score™ of 32/100, reflecting its overall financial health beyond just this single metric.
How does Homerun Resources' ROC % compare to NEM and AU?
Homerun Resources' ROC % of -85.66% can be compared against companies in the Metals & Mining industry. 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 Metals & Mining company?
A good ROC % depends on the Metals & Mining industry context. 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 Homerun Resources and its competitors. Homerun Resources's current ROC % is -85.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Homerun Resources stock overvalued right now?
Homerun Resources (HMRFF) has a current ROC % of -85.66%. The current ROC % is -85.66%. Homerun Resources' overall GF Score™ is 32/100 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 Homerun Resources (HMRFF), the current ROC % is -85.66% 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.
Homerun Resources Inc is an exploration stage company focused on silica sand and the development of silica-related resource and technology opportunities. The Company is also engaged in the development of photovoltaic and energy-related technology activities in Europe. The company has two reportable operating segments, being that its corporate headquarters located in Canada and of its operations in Brazil. The company generates majority of revenue from Canada. The company's solutions includes solar Glass, supply portfolio, purification, Energy Storage, Energy management system.
32GF Score
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