ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Jackson Financial's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -0.44%.
As of today (2026-06-26), Jackson Financial's WACC % is 7.44%. Jackson Financial's ROC % is -0.08% (calculated using TTM income statement data).
Jackson Financial earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Jackson Financial (NYSE:JXN) 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, Jackson Financial's WACC % is 7.44%. Jackson Financial's ROC % is -0.08% (calculated using TTM income statement data).
Jackson Financial 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.
Jackson Financial ROC % Related Terms
Jackson Financial ROC % Historical Data
* Premium members only.
The historical data trend for Jackson Financial'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 EBIT data used here is four times the quarterly (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.
Jackson Financial (JXN) has a ROC % of -0.44% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Jackson Financial and its competitors.
Is Jackson Financial's ROC % too high?
Jackson Financial's current ROC % is -0.44%. Overall, Jackson Financial has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Jackson Financial's ROC % compare to LNC and PRI?
Jackson Financial's ROC % of -0.44% can be compared against companies in the Insurance industry. The industry median ROC % is 3.36. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Insurance company?
The median ROC % among Insurance companies is 3.36, based on 368 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 Jackson Financial and its competitors. For the Insurance industry, the median ROC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jackson Financial's current ROC % is -0.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jackson Financial stock overvalued right now?
Based on GuruFocus' analysis, Jackson Financial (JXN) is currently considered Possible Value Trap. The stock's GF Value™ is $156.64, compared to a current price of $106.74 — trading 31.9% below its estimated fair value. The current ROC % is -0.44%. Jackson Financial's overall GF Score™ is 75/100 with 5 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 Jackson Financial (JXN), the current ROC % is -0.44% 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 Jackson Financial (JXN) Overvalued in 2026?
Based on GuruFocus' analysis, Jackson Financial stock appears to be undervalued.
The current stock price of $106.74 is trading 31.9% below its estimated GF Value™ of $156.64.
GuruFocus considers Jackson Financial to be Possible Value Trap.
Key valuation signals for JXN:
ROC %: -0.44%
GF Value™: $156.64 vs. price of $106.74 (31.9% below fair value)
No single metric tells the full story. See the JXN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jackson Financial Inc helps Americans grow and protect their retirement savings and income to enable them to pursue financial freedom for life. Its retail product offerings are comprised of annuities, designed to help retail investors save for and live in retirement. Its diverse suite of annuities includes a variable, fixed index, and fixed annuities. The company manages its business through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks and Corporate and Other segments. The company generates the majority of its revenue from the Retail Annuities segment, which offers a variety of retirement income and savings products of variable annuities, registered index-linked annuities ("RILA"), fixed index annuities, fixed annuities, and payout annuities.
75GF Score
Get the complete analysis for JXN
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
JXN has been successfully added to your 
