ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sygnia's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 0.22%.
As of today (2026-06-27), Sygnia's WACC % is 25.41%. Sygnia's ROC % is -0.09% (calculated using TTM income statement data).
Sygnia earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sygnia (JSE:SYG) 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, Sygnia's WACC % is 25.41%. Sygnia's ROC % is -0.09% (calculated using TTM income statement data).
Sygnia 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.
Sygnia ROC % Related Terms
Sygnia ROC % Historical Data
* Premium members only.
The historical data trend for Sygnia'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.
Sygnia (JSE:SYG) has a ROC % of 0.22% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sygnia and its competitors.
Is Sygnia's ROC % too high?
Sygnia's current ROC % is 0.22%. Overall, Sygnia has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sygnia's ROC % compare to FRHC and VOYA?
Sygnia's ROC % of 0.22% can be compared against companies in the Diversified Financial Services 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 Diversified Financial Services company?
A good ROC % depends on the Diversified Financial Services 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 Sygnia and its competitors. Sygnia's current ROC % is 0.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sygnia stock overvalued right now?
Based on GuruFocus' analysis, Sygnia (JSE:SYG) is currently considered Modestly Overvalued. The stock's GF Value™ is R28.33, compared to a current price of R32.05 — trading 13.1% above its estimated fair value. The current ROC % is 0.22%. Sygnia's overall GF Score™ is 69/100 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 Sygnia (JSE:SYG), the current ROC % is 0.22% 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 Sygnia (JSE:SYG) Overvalued in 2026?
Based on GuruFocus' analysis, Sygnia stock appears to be overvalued.
The current stock price of R32.05 is trading 13.1% above its estimated GF Value™ of R28.33.
GuruFocus considers Sygnia to be Modestly Overvalued.
Key valuation signals for JSE:SYG:
ROC %: 0.22%
GF Value™: R28.33 vs. price of R32.05 (13.1% above fair value)
No single metric tells the full story. See the JSE:SYG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sygnia Ltd is a specialist financial services company. The company provides investment management and administration solutions to institutional and retail clients located predominantly in South Africa. Its main investment services include domestic and international multi-manager and index-tracking products, customized investment design and management, transition management, and investment administration services. The company operates in Cape Town, Johannesburg, Durban, London, with Maximum of its revenue from South Africa.
69GF Score
Get the complete analysis for JSE:SYG
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
JSE:SYG has been successfully added to your 
