ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Balwin Properties's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 3.58%.
As of today (2026-06-26), Balwin Properties's WACC % is 4.95%. Balwin Properties's ROC % is 3.25% (calculated using TTM income statement data).
Balwin Properties earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Balwin Properties (JSE:BWN) 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, Balwin Properties's WACC % is 4.95%. Balwin Properties's ROC % is 3.25% (calculated using TTM income statement data).
Balwin Properties 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.
Balwin Properties ROC % Related Terms
Balwin Properties ROC % Historical Data
* Premium members only.
The historical data trend for Balwin Properties'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 (Feb. 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.
Balwin Properties (JSE:BWN) has a ROC % of 3.58% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Balwin Properties and its competitors.
Is Balwin Properties' ROC % too high?
Balwin Properties' current ROC % is 3.58%. The Real Estate industry median ROC % is 2.19. Balwin Properties' value of 3.58% is 63.5% above this industry median. Overall, Balwin Properties has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Balwin Properties' ROC % compare to competitors?
Balwin Properties' ROC % of 3.58% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.19. Balwin Properties' value of 3.58% is 63.5% above 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 Real Estate company?
The median ROC % among Real Estate companies is 2.19, based on 1,757 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. Balwin Properties's current ROC % of 3.58% is 63.5% above 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 Balwin Properties and its competitors. For the Real Estate industry, the median ROC % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Balwin Properties's current ROC % is 3.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Balwin Properties stock overvalued right now?
Based on GuruFocus' analysis, Balwin Properties (JSE:BWN) is currently considered Significantly Overvalued. The stock's GF Value™ is R2.32, compared to a current price of R4.20 — trading 81% above its estimated fair value. The current ROC % is 3.58% and 63.5% above the Real Estate industry median of 2.19. Balwin Properties' overall GF Score™ is 49/100 with 9 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 Balwin Properties (JSE:BWN), the current ROC % is 3.58% as of Feb. 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 Balwin Properties (JSE:BWN) Overvalued in 2026?
Based on GuruFocus' analysis, Balwin Properties stock appears to be overvalued.
The current stock price of R4.20 is trading 81% above its estimated GF Value™ of R2.32.
GuruFocus considers Balwin Properties to be Significantly Overvalued.
Key valuation signals for JSE:BWN:
ROC %: 3.58%
GF Value™: R2.32 vs. price of R4.20 (81% above fair value)
Industry Position: 63.5% above the Real Estate median
No single metric tells the full story. See the JSE:BWN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Balwin Properties Ltd is engaged in residential property development and sale of sectional title estates, bond origination, information and communication technology services, rental of commercial property and other annuity based services provided to the residential developments. Its operating segments include Sale of apartments and land; Provision of services to residential estates; Bond commission; property rental; and Balwin Foundation. It derives majority of the revenue from Residential and commercial property rental segment.
49GF Score
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