ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Johnson Matthey's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 0.00%.
As of today (2026-06-24), Johnson Matthey's WACC % is 9.61%. Johnson Matthey's ROC % is 0.00% (calculated using TTM income statement data).
Johnson Matthey earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Johnson Matthey (OTCPK:JMPLY) 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, Johnson Matthey's WACC % is 9.61%. Johnson Matthey's ROC % is 0.00% (calculated using TTM income statement data).
Johnson Matthey 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.
Johnson Matthey ROC % Related Terms
Johnson Matthey ROC % Historical Data
* Premium members only.
The historical data trend for Johnson Matthey'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 (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.
Johnson Matthey (JMPLY) has a ROC % of 0.00% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Johnson Matthey and its competitors.
Is Johnson Matthey's ROC % too high?
Johnson Matthey's current ROC % is 0.00%. Overall, Johnson Matthey has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Johnson Matthey's ROC % compare to LIN and SHW?
Johnson Matthey's ROC % of 0.00% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.46. 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 Chemicals company?
The median ROC % among Chemicals companies is 4.46, based on 1,585 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 Johnson Matthey and its competitors. For the Chemicals industry, the median ROC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Johnson Matthey's current ROC % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Johnson Matthey stock overvalued right now?
Based on GuruFocus' analysis, Johnson Matthey (JMPLY) is currently considered Modestly Overvalued. The stock's GF Value™ is $43.18, compared to a current price of $54.97 — trading 27.3% above its estimated fair value. The current ROC % is 0.00%. Johnson Matthey's overall GF Score™ is 68/100 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 Johnson Matthey (JMPLY), the current ROC % is 0.00% 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 Johnson Matthey (JMPLY) Overvalued in 2026?
Based on GuruFocus' analysis, Johnson Matthey stock appears to be overvalued.
The current stock price of $54.97 is trading 27.3% above its estimated GF Value™ of $43.18.
GuruFocus considers Johnson Matthey to be Modestly Overvalued.
Key valuation signals for JMPLY:
ROC %: 0.00%
GF Value™: $43.18 vs. price of $54.97 (27.3% above fair value)
No single metric tells the full story. See the JMPLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Johnson Matthey PLC is a platinum group metals (PGMs) company. It uses metal chemistry, catalysis, and process engineering and provides technology and expertise to energy, chemicals, and automotive companies to decarbonise, reduce harmful emissions, and improve sustainability. Its segments include Clean Air, PGM Services, Catalyst Technologies, Hydrogen Technologies and Value Businesses. The company generates maximum revenue from the PGM Services segment, which enables the energy transition through providing circular solutions as demand for scarce critical materials increases, provides a strategic service to the group supporting the other segments with security of metal supply, and manufactures value-added PGM products. The company derives key revenue from the United Kingdom.
68GF Score
Get the complete analysis for JMPLY
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
JMPLY has been successfully added to your 
