ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Calgro M3 Holdings's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 2.98%.
As of today (2026-06-28), Calgro M3 Holdings's WACC % is 4.09%. Calgro M3 Holdings's ROC % is 3.85% (calculated using TTM income statement data).
Calgro M3 Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Calgro M3 Holdings (JSE:CGR) 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, Calgro M3 Holdings's WACC % is 4.09%. Calgro M3 Holdings's ROC % is 3.85% (calculated using TTM income statement data).
Calgro M3 Holdings 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.
Calgro M3 Holdings ROC % Related Terms
Calgro M3 Holdings ROC % Historical Data
* Premium members only.
The historical data trend for Calgro M3 Holdings'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.
Calgro M3 Holdings (JSE:CGR) has a ROC % of 2.98% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Calgro M3 Holdings and its competitors.
Is Calgro M3 Holdings' ROC % too high?
Calgro M3 Holdings' current ROC % is 2.98%. The Homebuilding & Construction industry median ROC % is 4.78. Calgro M3 Holdings' value of 2.98% is 37.7% below this industry median. Overall, Calgro M3 Holdings has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Calgro M3 Holdings' ROC % compare to DHI and PHM?
Calgro M3 Holdings' ROC % of 2.98% can be compared against companies in the Homebuilding & Construction industry. The industry median ROC % is 4.78. Calgro M3 Holdings' value of 2.98% is 37.7% 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 Homebuilding & Construction company?
The median ROC % among Homebuilding & Construction companies is 4.78, based on 95 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. Calgro M3 Holdings's current ROC % of 2.98% is 37.7% 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 Calgro M3 Holdings and its competitors. For the Homebuilding & Construction industry, the median ROC % is 4.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Calgro M3 Holdings's current ROC % is 2.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Calgro M3 Holdings stock overvalued right now?
Based on GuruFocus' analysis, Calgro M3 Holdings (JSE:CGR) is currently considered Fairly Valued. The stock's GF Value™ is R4.19, compared to a current price of R4.49 — trading 7.2% above its estimated fair value. The current ROC % is 2.98% and 37.7% below the Homebuilding & Construction industry median of 4.78. Calgro M3 Holdings' overall GF Score™ is 60/100 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 Calgro M3 Holdings (JSE:CGR), the current ROC % is 2.98% 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 Calgro M3 Holdings (JSE:CGR) Overvalued in 2026?
Based on GuruFocus' analysis, Calgro M3 Holdings stock appears to be overvalued.
The current stock price of R4.49 is trading 7.2% above its estimated GF Value™ of R4.19.
GuruFocus considers Calgro M3 Holdings to be Fairly Valued.
Key valuation signals for JSE:CGR:
ROC %: 2.98%
GF Value™: R4.19 vs. price of R4.49 (7.2% above fair value)
Industry Position: 37.7% below the Homebuilding & Construction median
No single metric tells the full story. See the JSE:CGR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Calgro M3 Holdings Ltd is a property and property-related investment company that specializes in the development of Integrated Residential Developments and the development and management of Memorial Parks, focusing on its operations in Gauteng, Western Cape, Free State and Northwest. The group develops integrated housing developments consisting of subsidized, social, Grassroots Affordable or First Home Finance and Affordable Housing. Its segments include Residential Property Development segment consists of development of integrated housing developments and mid to high income housing projects and Memorial Parks consist of burial rights and the associated burial and maintenance services.
60GF Score
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