ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Macfarlane Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 4.10%.
As of today (2026-06-26), Macfarlane Group's WACC % is 5.87%. Macfarlane Group's ROC % is 4.57% (calculated using TTM income statement data).
Macfarlane Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Macfarlane Group (LSE:MACF) 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, Macfarlane Group's WACC % is 5.87%. Macfarlane Group's ROC % is 4.57% (calculated using TTM income statement data).
Macfarlane 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.
Macfarlane Group ROC % Related Terms
Macfarlane Group ROC % Historical Data
* Premium members only.
The historical data trend for Macfarlane Group'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 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.
Macfarlane Group (LSE:MACF) has a ROC % of 4.10% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Macfarlane Group and its competitors.
Is Macfarlane Group's ROC % too high?
Macfarlane Group's current ROC % is 4.10%. The Packaging & Containers industry median ROC % is 4.19. Macfarlane Group's value of 4.10% is 2.1% below this industry median. Overall, Macfarlane Group has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Macfarlane Group's ROC % compare to SW and PKG?
Macfarlane Group's ROC % of 4.10% can be compared against companies in the Packaging & Containers industry. The industry median ROC % is 4.19. Macfarlane Group's value of 4.10% is 2.1% 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 a Packaging & Containers company?
The median ROC % among Packaging & Containers companies is 4.19, based on 397 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. Macfarlane Group's current ROC % of 4.10% is 2.1% 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 Macfarlane Group and its competitors. For the Packaging & Containers industry, the median ROC % is 4.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Macfarlane Group's current ROC % is 4.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Macfarlane Group stock overvalued right now?
Based on GuruFocus' analysis, Macfarlane Group (LSE:MACF) is currently considered Significantly Undervalued. The stock's GF Value™ is £1.18, compared to a current price of £0.66 — trading 44.1% below its estimated fair value. The current ROC % is 4.10% and 2.1% below the Packaging & Containers industry median of 4.19. Macfarlane Group's overall GF Score™ is 57/100 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 Macfarlane Group (LSE:MACF), the current ROC % is 4.10% 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 Macfarlane Group (LSE:MACF) Overvalued in 2026?
Based on GuruFocus' analysis, Macfarlane Group stock appears to be undervalued.
The current stock price of £0.66 is trading 44.1% below its estimated GF Value™ of £1.18.
GuruFocus considers Macfarlane Group to be Significantly Undervalued.
Key valuation signals for LSE:MACF:
ROC %: 4.10%
GF Value™: £1.18 vs. price of £0.66 (44.1% below fair value)
Industry Position: 2.1% below the Packaging & Containers median
No single metric tells the full story. See the LSE:MACF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Macfarlane Group PLC is a United Kingdom-based company that provides services for the packaging sector. It operates in two segments Packaging Distribution segment, which includes the distribution of packaging materials & supply of storage & warehousing services, & Manufacturing Operations comprises the manufacturing & supplying of self-adhesive labels to fast-moving consumer goods. The business operates Regional Distribution Centers, supplying customers with a range of packaging materials & services. It operates across a wide range of sectors such as Aerospace, Defense, Electronics, Medical General, Industrial food, health & beauty, household products, & beverages sectors. It derives key revenue from the Distribution segment. Geographically, it derives the majority revenue from the UK.
57GF Score
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