Neo Energy Metals (LSE:NEO) ROC %: -5.85% (As of Mar. 2026)


What is Neo Energy Metals ROC %?

Neo Energy Metals LSE:NEO +0.13% ROC % is -5.85% as of Mar. 2026. 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 %. Neo Energy Metals's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -5.85%.

As of today (2026-06-26), Neo Energy Metals's WACC % is 13.74%. Neo Energy Metals's ROC % is -10.74% (calculated using TTM income statement data). Neo Energy Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Neo Energy Metals  (LSE:NEO) 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, Neo Energy Metals's WACC % is 13.74%. Neo Energy Metals's ROC % is -10.74% (calculated using TTM income statement data). Neo Energy Metals 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.

Neo Energy Metals ROC % Related Terms

Neo Energy Metals ROC % Historical Data

* Premium members only.

The historical data trend for Neo Energy Metals'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.

Neo Energy Metals ROC % Chart

Neo Energy Metals Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Sep24 Sep25
ROC %
Get a 7-Day Free Trial -103.85 -64.09 -29.57 -10.53 -16.56

Neo Energy Metals Semi-Annual Data
Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar24 Sep24 Mar25 Sep25 Mar26
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -286.78 -5.46 -28.41 -16.10 -5.85

Neo Energy Metals ROC % Calculation

Neo Energy Metals's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2025 is calculated as:

ROC % (A: Sep. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2024 ) + Invested Capital (A: Sep. 2025 ))/ count )
=-6.054 * ( 1 - 0% )/( (35.785 + 37.347)/ 2 )
=-6.054/36.566
=-16.56 %

where

Invested Capital(A: Sep. 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))
=18.422 - 0.698 - ( 0.003 - max(0, 18.2 - 0.139+0.003))
=35.785

Invested Capital(A: Sep. 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))
=19.869 - 1.268 - ( 0.019 - max(0, 18.884 - 0.138+0.019))
=37.347

Neo Energy Metals's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=-2.188 * ( 1 - 0% )/( (37.347 + 37.42)/ 2 )
=-2.188/37.3835
=-5.85 %

where

Invested Capital(Q: Sep. 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))
=19.869 - 1.268 - ( 0.019 - max(0, 18.884 - 0.138+0.019))
=37.347

Invested Capital(Q: Mar. 2026 )
=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))
=21.964 - 2.155 - ( 1.542 - max(0, 19.368 - 1.757+1.542))
=37.42

Note: The Operating Income data used here is two times the semi-annual (Mar. 2026) 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -5.85% mean?
Neo Energy Metals (LSE:NEO) has a ROC % of -5.85% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Neo Energy Metals and its competitors.
Is Neo Energy Metals' ROC % too high?
Neo Energy Metals' current ROC % is -5.85%.
How does Neo Energy Metals' ROC % compare to UEC and LEU?
Neo Energy Metals' ROC % of -5.85% can be compared against companies in the Other Energy Sources 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 an Other Energy Sources company?
A good ROC % depends on the Other Energy Sources 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 Neo Energy Metals and its competitors. Neo Energy Metals's current ROC % is -5.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neo Energy Metals stock overvalued right now?
Neo Energy Metals (LSE:NEO) has a current ROC % of -5.85%. The current ROC % is -5.85%. 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 Neo Energy Metals (LSE:NEO), the current ROC % is -5.85% as of Mar. 2026. 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.

Neo Energy Metals Business Description

Other Exchanges L7J:Germany
Address 27-28 Eastcastle Street, London, GBR, W1W 8DH
Neo Energy Metals PLC is engaged in mining and development, focusing on Uranium and Strategic Metals. Group is focused on two reportable segments as follows: Head office, corporate and administrative, including parent company activities of raising finance and seeking new investment opportunities, all based in the UK; and Uranium and gold exploration and mining operations, all based in South Africa. Geographically, it operates its business in the United Kingdom and Africa.