ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Engro Fertilizers's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.13%.
As of today (2026-06-25), Engro Fertilizers's WACC % is 9.51%. Engro Fertilizers's ROC % is 11.96% (calculated using TTM income statement data).
Engro Fertilizers generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Engro Fertilizers (KAR:EFERT) 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, Engro Fertilizers's WACC % is 9.51%. Engro Fertilizers's ROC % is 11.96% (calculated using TTM income statement data).
Engro Fertilizers generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Engro Fertilizers ROC % Related Terms
Engro Fertilizers ROC % Historical Data
* Premium members only.
The historical data trend for Engro Fertilizers'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.
Engro Fertilizers (KAR:EFERT) has a ROC % of 7.13% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Engro Fertilizers and its competitors.
Is Engro Fertilizers' ROC % too high?
Engro Fertilizers' current ROC % is 7.13%. The Agriculture industry median ROC % is 5.48. Engro Fertilizers' value of 7.13% is 30.2% above this industry median. Overall, Engro Fertilizers has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Engro Fertilizers' ROC % compare to CTVA and CF?
Engro Fertilizers' ROC % of 7.13% can be compared against companies in the Agriculture industry. The industry median ROC % is 5.48. Engro Fertilizers' value of 7.13% is 30.2% 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 Agriculture company?
The median ROC % among Agriculture companies is 5.48, based on 258 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. Engro Fertilizers's current ROC % of 7.13% is 30.2% 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 Engro Fertilizers and its competitors. For the Agriculture industry, the median ROC % is 5.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Engro Fertilizers's current ROC % is 7.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Engro Fertilizers stock overvalued right now?
Based on GuruFocus' analysis, Engro Fertilizers (KAR:EFERT) is currently considered Fairly Valued. The stock's GF Value™ is ₨194.89, compared to a current price of ₨200.21 — trading 2.7% above its estimated fair value. The current ROC % is 7.13% and 30.2% above the Agriculture industry median of 5.48. Engro Fertilizers' overall GF Score™ is 82/100 with 8 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 Engro Fertilizers (KAR:EFERT), the current ROC % is 7.13% 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 Engro Fertilizers (KAR:EFERT) Overvalued in 2026?
Based on GuruFocus' analysis, Engro Fertilizers stock appears to be overvalued.
The current stock price of ₨200.21 is trading 2.7% above its estimated GF Value™ of ₨194.89.
GuruFocus considers Engro Fertilizers to be Fairly Valued.
Key valuation signals for KAR:EFERT:
ROC %: 7.13%
GF Value™: ₨194.89 vs. price of ₨200.21 (2.7% above fair value)
Industry Position: 30.2% above the Agriculture median
No single metric tells the full story. See the KAR:EFERT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Engro Fertilizers Ltd is a Pakistan-based company mainly involved in the manufacturing, purchasing, and marketing of fertilizers, seeds, and pesticides and providing logistics services. It segments include: Straight Fertilizers (Engro Urea, Phosphatic Fertilizers); Specialty Fertilizer (Engro Zabardast Urea, Zarkhez grades), and Agri services including site specific recommendations. The company offers different ranges of products under brand names such as Engro Urea, Engro DAP, Engro TSP, Engro Zorawar, Engro Zarkhez, Engro Zarkhez Plus, and Engro Zarkhez Khaas.
82GF Score
Get the complete analysis for KAR:EFERT
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
KAR:EFERT has been successfully added to your 
