ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. AECI's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 0.98%.
As of today (2026-06-25), AECI's WACC % is 6.56%. AECI's ROC % is 2.98% (calculated using TTM income statement data).
AECI earns returns that do not match up to its cost of capital. It will destroy value as it grows.
AECI (JSE:AFE) 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, AECI's WACC % is 6.56%. AECI's ROC % is 2.98% (calculated using TTM income statement data).
AECI 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.
AECI ROC % Related Terms
AECI ROC % Historical Data
* Premium members only.
The historical data trend for AECI'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.
AECI (JSE:AFE) has a ROC % of 0.98% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on AECI and its competitors.
Is AECI's ROC % too high?
AECI's current ROC % is 0.98%. The Chemicals industry median ROC % is 4.46. AECI's value of 0.98% is 78% below this industry median. Overall, AECI has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does AECI's ROC % compare to LIN and SHW?
AECI's ROC % of 0.98% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.46. AECI's value of 0.98% is 78% 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 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. AECI's current ROC % of 0.98% is 78% 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 AECI 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. AECI's current ROC % is 0.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AECI stock overvalued right now?
Based on GuruFocus' analysis, AECI (JSE:AFE) is currently considered Significantly Overvalued. The stock's GF Value™ is R90.99, compared to a current price of R125.54 — trading 38% above its estimated fair value. The current ROC % is 0.98% and 78% below the Chemicals industry median of 4.46. AECI's overall GF Score™ is 62/100 with 6 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 AECI (JSE:AFE), the current ROC % is 0.98% 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 AECI (JSE:AFE) Overvalued in 2026?
Based on GuruFocus' analysis, AECI stock appears to be overvalued.
The current stock price of R125.54 is trading 38% above its estimated GF Value™ of R90.99.
GuruFocus considers AECI to be Significantly Overvalued.
Key valuation signals for JSE:AFE:
ROC %: 0.98%
GF Value™: R90.99 vs. price of R125.54 (38% above fair value)
No single metric tells the full story. See the JSE:AFE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AECI Ltd is a diversified group operating predominantly in the chemicals industry. The company performs its various business activities in the following reportable segments: AECI Mining, AECI Chemicals, AECI Managed Businesses, and AECI Property Services and Corporate. A majority of its revenue is generated from the AECI Mining segment, which provides a mine-to-mineral solution for the international mining sector. The offerings under this segment include commercial explosives, initiating systems, blasting services, and surfactants for explosives manufacture across the value chain to chemicals for ore beneficiation and tailings treatment. Geographically, the group generates a majority of its revenue from Africa, followed by Asia-Pacific, Europe, North America, and Latin America.
62GF Score
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