Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Key Energy Services's annualized return on capital (ROC %) for the quarter that ended in Sep. 2020 was -17.01%.
As of today (2026-08-31), Key Energy Services's WACC % is 0.00%. Key Energy Services's ROC % is 0.00% (calculated using TTM income statement data).
Key Energy Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Key Energy Services (OTCPK:KEGX) 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, Key Energy Services's WACC % is 0.00%. Key Energy Services's ROC % is 0.00% (calculated using TTM income statement data).
Key Energy Services 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.
Key Energy Services ROC % Related Terms
Key Energy Services ROC % Historical Data
* Premium members only.
The historical data trend for Key Energy Services'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 (Sep. 2020) 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.
Key Energy Services (KEGX) has a ROC % of -17.01% as of Sep. 2020. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Key Energy Services and its competitors.
Is Key Energy Services' ROC % too high?
Key Energy Services' current ROC % is -17.01%. Overall, Key Energy Services has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Key Energy Services' ROC % compare to GEOS and NGS?
Key Energy Services' ROC % of -17.01% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 4.33. 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 Oil & Gas company?
The median ROC % among Oil & Gas companies is 4.33, based on 1,011 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 Key Energy Services and its competitors. For the Oil & Gas industry, the median ROC % is 4.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Key Energy Services's current ROC % is -17.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Key Energy Services stock overvalued right now?
Key Energy Services (KEGX) has a current ROC % of -17.01%. The current ROC % is -17.01%. Key Energy Services' overall GF Score™ is 12/100. 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 Key Energy Services (KEGX), the current ROC % is -17.01% as of Sep. 2020. 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.
Key Energy Services Inc is an onshore, rig-based well-servicing contractor. It provides a full range of well-services to oil companies, and independent oil and natural gas production companies. Its services include rig-based and coiled tubing-based well maintenance and workover services, well completion and re-completion services, fluid management services, fishing, and rental services, and other ancillary oilfield services. Its segment includes Rig Services, Fishing, and Rental Services, Coiled Tubing Services and Fluid Management Services within the United States. The company derives the maximum revenue from the Rig Services segment.
12GF Score
Get the complete analysis for KEGX
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
KEGX has been successfully added to your 
