ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Nexus Infrastructure's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -5.52%.
As of today (2026-06-26), Nexus Infrastructure's WACC % is 7.18%. Nexus Infrastructure's ROC % is -7.43% (calculated using TTM income statement data).
Nexus Infrastructure earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Nexus Infrastructure (LSE:NEXS) 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, Nexus Infrastructure's WACC % is 7.18%. Nexus Infrastructure's ROC % is -7.43% (calculated using TTM income statement data).
Nexus Infrastructure 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 (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.
Nexus Infrastructure (LSE:NEXS) has a ROC % of -5.52% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nexus Infrastructure and its competitors.
Is Nexus Infrastructure's ROC % too high?
Nexus Infrastructure's current ROC % is -5.52%. Overall, Nexus Infrastructure has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nexus Infrastructure's ROC % compare to PWR and FIX?
Nexus Infrastructure's ROC % of -5.52% can be compared against companies in the Construction industry. The industry median ROC % is 4.65. 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 Construction company?
The median ROC % among Construction companies is 4.65, based on 1,755 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 Nexus Infrastructure and its competitors. For the Construction industry, the median ROC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nexus Infrastructure's current ROC % is -5.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nexus Infrastructure stock overvalued right now?
Based on GuruFocus' analysis, Nexus Infrastructure (LSE:NEXS) is currently considered Significantly Undervalued. The stock's GF Value™ is £1.71, compared to a current price of £1.08 — trading 37.1% below its estimated fair value. The current ROC % is -5.52%. Nexus Infrastructure's overall GF Score™ is 74/100 with 3 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 Nexus Infrastructure (LSE:NEXS), the current ROC % is -5.52% 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.
Is Nexus Infrastructure (LSE:NEXS) Overvalued in 2026?
Based on GuruFocus' analysis, Nexus Infrastructure stock appears to be undervalued.
The current stock price of £1.08 is trading 37.1% below its estimated GF Value™ of £1.71.
GuruFocus considers Nexus Infrastructure to be Significantly Undervalued.
Key valuation signals for LSE:NEXS:
ROC %: -5.52%
GF Value™: £1.71 vs. price of £1.08 (37.1% below fair value)
No single metric tells the full story. See the LSE:NEXS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nexus Infrastructure PLC engages in the provision of infrastructure services in the house-building and commercial sectors in the United Kingdom. The Group business includes Tamdown, a Civil Engineering business, that provides a range of civil engineering and infrastructure services to the UK housebuilding sector. These services include earthworks, building highways, substructures, and basements, and installing sustainable drainage systems. It operates in the South East of England and London. The company generates revenue from Tamdon, Nexus Infrastructure Plc, and Nexus Park Ltd.
74GF Score
Get the complete analysis for LSE:NEXS
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:NEXS has been successfully added to your 
