HRTX (Heron Therapeutics) ROC %: -16.38% (As of Mar. 2026)

What is Heron Therapeutics ROC %?

Heron Therapeutics HRTX +4.04% 49 ROC % is -16.38% as of Mar. 2026. GuruFocus rates HRTX with a GF Score™ of 49/100 and a GF Value™ of $1.53 (Possible Value Trap). The stock has 4 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 %. Heron Therapeutics's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -16.38%.

As of today (2026-06-25), Heron Therapeutics's WACC % is 8.58%. Heron Therapeutics's ROC % is -8.25% (calculated using TTM income statement data). Heron Therapeutics earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Heron Therapeutics (NAS:HRTX) 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, Heron Therapeutics's WACC % is 8.58%. Heron Therapeutics's ROC % is -8.25% (calculated using TTM income statement data). Heron Therapeutics 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.

Heron Therapeutics ROC % Related Terms

Heron Therapeutics ROC % Historical Data

* Premium members only.

The historical data trend for Heron Therapeutics'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.

Heron Therapeutics ROC % Chart

Heron Therapeutics Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROC %

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-276.64

-183.19

-129.33

-13.83

-2.36

Heron Therapeutics Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROC %	Get a 7-Day Free Trial															13.13	-4.41	-10.83	0.13	-16.38

49GF Score

Heron Therapeutics Inc HRTX

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Heron Therapeutics ROC % Calculation

Heron Therapeutics's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2025 is calculated as:

	ROC % (A: Dec. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2024 )	+	Invested Capital (A: Dec. 2025 ))	/ count )
=	-2.538 * ( 1 - 0% )	/	( (93.407	+	121.762)	/ 2 )
=	-2.538	/	107.5845
=	-2.36 %

where

	Invested Capital		(A: Dec. 2024 )
=	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	))
=	233.147	-	80.457	-	( 59.283	-	max(0, 91.457	-	209.014	+	59.283	))
=	93.407

	Invested Capital		(A: Dec. 2025 )
=	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	))
=	255.877	-	87.484	-	( 46.631	-	max(0, 96.098	-	238.066	+	46.631	))
=	121.762

Heron Therapeutics's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2026 is calculated as:

	ROC % (Q: Mar. 2026 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2025 )	+	Invested Capital (Q: Mar. 2026 ))	/ count )
=	-19.06 * ( 1 - 0% )	/	( (121.762	+	110.916)	/ 2 )
=	-19.06	/	116.339
=	-16.38 %

where

	Invested Capital		(Q: Dec. 2025 )
=	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	))
=	255.877	-	87.484	-	( 46.631	-	max(0, 96.098	-	238.066	+	46.631	))
=	121.762

	Invested Capital		(Q: Mar. 2026 )
=	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	))
=	246.216	-	90.516	-	( 44.784	-	max(0, 90.516	-	228.984	+	44.784	))
=	110.916

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%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -16.38% mean?

Heron Therapeutics (HRTX) has a ROC % of -16.38% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Heron Therapeutics and its competitors.

Is Heron Therapeutics' ROC % too high?

Heron Therapeutics' current ROC % is -16.38%. Overall, Heron Therapeutics has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.

How does Heron Therapeutics' ROC % compare to PLYX and ORMP?

Heron Therapeutics' ROC % of -16.38% can be compared against companies in the Biotechnology 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 Biotechnology company?

A good ROC % depends on the Biotechnology 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 Heron Therapeutics and its competitors. Heron Therapeutics's current ROC % is -16.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Heron Therapeutics stock overvalued right now?

Based on GuruFocus' analysis, Heron Therapeutics (HRTX) is currently considered Possible Value Trap. The stock's GF Value™ is $1.53, compared to a current price of $0.43 — trading 71.7% below its estimated fair value. The current ROC % is -16.38%. Heron Therapeutics' overall GF Score™ is 49/100 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 Heron Therapeutics (HRTX), the current ROC % is -16.38% 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 Heron Therapeutics (HRTX) Overvalued in 2026?

Based on GuruFocus' analysis, Heron Therapeutics stock appears to be undervalued. The current stock price of $0.43 is trading 71.7% below its estimated GF Value™ of $1.53. GuruFocus considers Heron Therapeutics to be Possible Value Trap.

Key valuation signals for HRTX:

ROC %: -16.38%
GF Value™: $1.53 vs. price of $0.43 (71.7% below fair value)
GF Score™: 49/100 with 4 warning signs

No single metric tells the full story. See the HRTX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Heron Therapeutics Business Description

Industry Healthcare Biotechnology

Comparable Companies PLYX ORMP SPRO MENS PRQR GALT NRXP PLX CNTB ANTX VRTX REGN XBRU:UCB XBRU:ARGX XKRX:207940 ALNY RVMD ASX:CSL ONC XKRX:068270

Other Exchanges 0J4V:UK AXD2:Germany

Address 100 Regency Forect Drive, Suite 300, Cary, NC, USA, 27518

Website https://www.herontx.com

Heron Therapeutics Inc is a commercial-stage biotechnology company. The company is focused on improving the lives of patients by developing treatments and commercializing therapeutic solutions to address some of the unmet patient needs. The company's product portfolio consists of APONVIE, SUSTOL, ZYNRELEF, and CINVANTI.

49GF Score

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$0.43

Price

$1.53

GF Value

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