ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Arif Habib's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 5.12%.
As of today (2026-06-25), Arif Habib's WACC % is 10.11%. Arif Habib's ROC % is 5.77% (calculated using TTM income statement data).
Arif Habib earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Arif Habib (KAR:AHCL) 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, Arif Habib's WACC % is 10.11%. Arif Habib's ROC % is 5.77% (calculated using TTM income statement data).
Arif Habib 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.
Arif Habib ROC % Related Terms
Arif Habib ROC % Historical Data
* Premium members only.
The historical data trend for Arif Habib'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 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.
Arif Habib (KAR:AHCL) has a ROC % of 5.12% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Arif Habib and its competitors.
Is Arif Habib's ROC % too high?
Arif Habib's current ROC % is 5.12%. The Utilities - Independent Power Producers industry median ROC % is 2.27. Arif Habib's value of 5.12% is 126% above this industry median. Overall, Arif Habib has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arif Habib's ROC % compare to competitors?
Arif Habib's ROC % of 5.12% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROC % is 2.27. Arif Habib's value of 5.12% is 126% 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 an Utilities - Independent Power Producers company?
The median ROC % among Utilities - Independent Power Producers companies is 2.27, based on 430 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. Arif Habib's current ROC % of 5.12% is 126% 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 Arif Habib and its competitors. For the Utilities - Independent Power Producers industry, the median ROC % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arif Habib's current ROC % is 5.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arif Habib stock overvalued right now?
Based on GuruFocus' analysis, Arif Habib (KAR:AHCL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨6.59, compared to a current price of ₨15.99 — trading 142.6% above its estimated fair value. The current ROC % is 5.12% and 126% above the Utilities - Independent Power Producers industry median of 2.27. Arif Habib's overall GF Score™ is 58/100 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 Arif Habib (KAR:AHCL), the current ROC % is 5.12% 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 Arif Habib (KAR:AHCL) Overvalued in 2026?
Based on GuruFocus' analysis, Arif Habib stock appears to be overvalued.
The current stock price of ₨15.99 is trading 142.6% above its estimated GF Value™ of ₨6.59.
GuruFocus considers Arif Habib to be Significantly Overvalued.
Key valuation signals for KAR:AHCL:
ROC %: 5.12%
GF Value™: ₨6.59 vs. price of ₨15.99 (142.6% above fair value)
Industry Position: 126% above the Utilities - Independent Power Producers median
No single metric tells the full story. See the KAR:AHCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arif Habib Corp Ltd generates and sells electricity in Pakistan. It is also engaged in providing equity and debt brokerage, as well as corporate finance services to institutional, corporate, high-net-worth, and retail clients. Its segments are Capital market operations; Brokerage; Energy Development, and Others. The firm generates the majority of revenue from the Energy segment. The Energy segment is engaged in energy development. The brokerage segment is engaged in brokerage, underwriting, corporate consultancy, research, and corporate finance services. Capital market operations segment is engaged in trading of equity securities and maintaining strategic and trading portfolios. Others include assets of RCPL.
58GF Score
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