Faron Pharmaceuticals Oy (LSE:FARN) ROC %: -155.24% (As of Dec. 2025)

What is Faron Pharmaceuticals Oy ROC %?

Faron Pharmaceuticals Oy LSE:FARN -0.24% 22 ROC % is -155.24% as of Dec. 2025. GuruFocus rates LSE:FARN with a GF Score™ of 22/100. The stock has 4 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Faron Pharmaceuticals Oy's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -155.24%.

As of today (2026-06-29), Faron Pharmaceuticals Oy's WACC % is 5.22%. Faron Pharmaceuticals Oy's ROC % is -227.50% (calculated using TTM income statement data). Faron Pharmaceuticals Oy earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Faron Pharmaceuticals Oy (LSE:FARN) 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, Faron Pharmaceuticals Oy's WACC % is 5.22%. Faron Pharmaceuticals Oy's ROC % is -227.50% (calculated using TTM income statement data). Faron Pharmaceuticals Oy 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.

Faron Pharmaceuticals Oy ROC % Related Terms

Faron Pharmaceuticals Oy ROC % Historical Data

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The historical data trend for Faron Pharmaceuticals Oy'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.

Faron Pharmaceuticals Oy ROC % Chart

Faron Pharmaceuticals Oy Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROC %

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-356.49

-427.26

-398.75

-258.63

-179.99

Faron Pharmaceuticals Oy Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
ROC %	Get a 7-Day Free Trial															-470.39	-300.21	-203.99	-468.44	-155.24

22GF Score

Faron Pharmaceuticals Oy LSE:FARN

ROC % is just one metric. See GF Score™, valuation, warning signs, and more.

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Faron Pharmaceuticals Oy ROC % Calculation

Faron Pharmaceuticals Oy's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2025 is calculated as:

	ROC % (A: Dec. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2024 )	+	Invested Capital (A: Dec. 2025 ))	/ count )
=	-16.584 * ( 1 - 0% )	/	( (5.591	+	12.837)	/ 2 )
=	-16.584	/	9.214
=	-179.99 %

where

	Invested Capital		(A: Dec. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	10.371	-	4.039	-	( 7.871	-	max(0, 8.424	-	9.165	+	7.871	))
=	5.591

	Invested Capital		(A: Dec. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	15.02	-	4.85	-	( 10.774	-	max(0, 16.509	-	13.842	+	10.774	))
=	12.837

Faron Pharmaceuticals Oy's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2025 is calculated as:

	ROC % (Q: Dec. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2025 )	+	Invested Capital (Q: Dec. 2025 ))	/ count )
=	-12.334 * ( 1 - 0% )	/	( (3.053	+	12.837)	/ 2 )
=	-12.334	/	7.945
=	-155.24 %

where

	Invested Capital		(Q: Jun. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	13.774	-	4.789	-	( 11.503	-	max(0, 6.653	-	12.585	+	11.503	))
=	3.053

	Invested Capital		(Q: Dec. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	15.02	-	4.85	-	( 10.774	-	max(0, 16.509	-	13.842	+	10.774	))
=	12.837

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%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -155.24% mean?

Faron Pharmaceuticals Oy (LSE:FARN) has a ROC % of -155.24% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Faron Pharmaceuticals Oy and its competitors.

Is Faron Pharmaceuticals Oy's ROC % too high?

Faron Pharmaceuticals Oy's current ROC % is -155.24%. Overall, Faron Pharmaceuticals Oy has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.

How does Faron Pharmaceuticals Oy's ROC % compare to VRTX and REGN?

Faron Pharmaceuticals Oy's ROC % of -155.24% can be compared against companies in the Biotechnology industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROC % for a Biotechnology company?

A good ROC % depends on the Biotechnology industry context. 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 Faron Pharmaceuticals Oy and its competitors. Faron Pharmaceuticals Oy's current ROC % is -155.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Faron Pharmaceuticals Oy stock overvalued right now?

Faron Pharmaceuticals Oy (LSE:FARN) has a current ROC % of -155.24%. The current ROC % is -155.24%. Faron Pharmaceuticals Oy's overall GF Score™ is 22/100 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 Faron Pharmaceuticals Oy (LSE:FARN), the current ROC % is -155.24% 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.

Faron Pharmaceuticals Oy Business Description

Industry Healthcare Biotechnology

Comparable Companies LSE:4BB LSE:BVXP LSE:HEMO LSE:POLB LSE:COIL LSE:SBTX LSE:SAR LSE:AREC LSE:IMM LSE:APTA VRTX REGN XBRU:UCB XBRU:ARGX XKRX:207940 ALNY ASX:CSL RVMD ONC MRNA

Other Exchanges FARON:Finland 4FR:Germany

Address Joukahaisenkatu 6 B, Turku, FIN, 20520

Website https://www.faron.com

Faron Pharmaceuticals Oy is a clinical-stage biopharmaceutical company. The company has one operating and reportable segment. The Group has a pipeline based on the receptors involved in the regulation of immune response in oncology, organ damage, and bone marrow regeneration. Faron is a late clinical stage drug discovery and development Group. The company includes Bexmarilimab in its pipeline. Bexmarilimab is Faron's wholly owned, investigational immunotherapy designed to overcome resistance to existing treatments and improve clinical outcomes by targeting myeloid cell function in the microenvironment and igniting the immune system against cancer.

22GF Score

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