ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Cadogan Energy Solutions's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -17.66%.
As of today (2026-06-26), Cadogan Energy Solutions's WACC % is 3.98%. Cadogan Energy Solutions's ROC % is -14.81% (calculated using TTM income statement data).
Cadogan Energy Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Cadogan Energy Solutions (LSE:CAD) 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, Cadogan Energy Solutions's WACC % is 3.98%. Cadogan Energy Solutions's ROC % is -14.81% (calculated using TTM income statement data).
Cadogan Energy Solutions 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.
Cadogan Energy Solutions (LSE:CAD) has a ROC % of -17.66% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Cadogan Energy Solutions and its competitors.
Is Cadogan Energy Solutions' ROC % too high?
Cadogan Energy Solutions' current ROC % is -17.66%.
How does Cadogan Energy Solutions' ROC % compare to COP and EOG?
Cadogan Energy Solutions' ROC % of -17.66% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.63. 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 3.63, based on 997 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 Cadogan Energy Solutions and its competitors. For the Oil & Gas industry, the median ROC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadogan Energy Solutions's current ROC % is -17.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cadogan Energy Solutions stock overvalued right now?
Based on GuruFocus' analysis, Cadogan Energy Solutions (LSE:CAD) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.01, compared to a current price of £0.04 — trading 275% above its estimated fair value. The current ROC % is -17.66%. 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 Cadogan Energy Solutions (LSE:CAD), the current ROC % is -17.66% 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.
Cadogan Energy Solutions PLC is an independent energy company, which operates an exploration and production license in Western Ukraine, conducts gas trading operations, and provides services to E&P companies. The objective of the company is to be a diversified energy group making investments offering energy solutions and alternative services with a lower environmental impact. It has two operating segments; the Exploration and Production segment includes E&P activities on the exploration and production licenses for natural gas, oil, and condensate, and the Trading segment includes the Import of natural gas from European countries and Local purchase and sales of natural gas operations with physical delivery of natural gas.
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