ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Brooks Macdonald Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 1.00%.
As of today (2026-07-05), Brooks Macdonald Group's WACC % is 9.73%. Brooks Macdonald Group's ROC % is 1.93% (calculated using TTM income statement data).
Brooks Macdonald Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Brooks Macdonald Group (LSE:BRK) 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, Brooks Macdonald Group's WACC % is 9.73%. Brooks Macdonald Group's ROC % is 1.93% (calculated using TTM income statement data).
Brooks Macdonald Group 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.
* 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 (Dec. 2025) 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.
Brooks Macdonald Group (LSE:BRK) has a ROC % of 1.00% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Brooks Macdonald Group and its competitors.
Is Brooks Macdonald Group's ROC % too high?
Brooks Macdonald Group's current ROC % is 1.00%. The Asset Management industry median ROC % is 1.21. Brooks Macdonald Group's value of 1.00% is 17.4% below this industry median. Overall, Brooks Macdonald Group has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Brooks Macdonald Group's ROC % compare to BLK and BX?
Brooks Macdonald Group's ROC % of 1.00% can be compared against companies in the Asset Management industry. The industry median ROC % is 1.21. Brooks Macdonald Group's value of 1.00% is 17.4% below 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 Asset Management company?
The median ROC % among Asset Management companies is 1.21, based on 711 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. Brooks Macdonald Group's current ROC % of 1.00% is 17.4% below 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 Brooks Macdonald Group and its competitors. For the Asset Management industry, the median ROC % is 1.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brooks Macdonald Group's current ROC % is 1.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brooks Macdonald Group stock overvalued right now?
Based on GuruFocus' analysis, Brooks Macdonald Group (LSE:BRK) is currently considered Significantly Undervalued. The stock's GF Value™ is £18.76, compared to a current price of £13.00 — trading 30.7% below its estimated fair value. The current ROC % is 1.00% and 17.4% below the Asset Management industry median of 1.21. Brooks Macdonald Group's overall GF Score™ is 74/100 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 Brooks Macdonald Group (LSE:BRK), the current ROC % is 1.00% as of Dec. 2025. 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 Brooks Macdonald Group (LSE:BRK) Overvalued in 2026?
Based on GuruFocus' analysis, Brooks Macdonald Group stock appears to be undervalued.
The current stock price of £13.00 is trading 30.7% below its estimated GF Value™ of £18.76.
GuruFocus considers Brooks Macdonald Group to be Significantly Undervalued.
Key valuation signals for LSE:BRK:
ROC %: 1.00%
GF Value™: £18.76 vs. price of £13.00 (30.7% below fair value)
Industry Position: 17.4% below the Asset Management median
No single metric tells the full story. See the LSE:BRK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Brooks Macdonald Group PLC provides investment management services, handles offshore fund management and administration services, and acts as a fund manager to regulated open-ended investment companies. It provides its services to private investors, pension funds, charities, trusts, high-net-worth families, and employee benefit consultancies. It also offers specialized funds in the property and absolute return sectors and manages property assets on behalf of these funds and other clients. Additionally, the company is involved in international investment advisory services as well. The majority of its revenue is generated from the investment management business. Geographically, the company carries out all of its operations in the United Kingdom.
74GF Score
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