ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Northern Bear's annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was 23.66%.
As of today (2026-07-01), Northern Bear's WACC % is 5.17%. Northern Bear's ROC % is 16.59% (calculated using TTM income statement data).
Northern Bear generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Northern Bear (LSE:NTBR) 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, Northern Bear's WACC % is 5.17%. Northern Bear's ROC % is 16.59% (calculated using TTM income statement data).
Northern Bear generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Northern Bear ROC % Related Terms
Northern Bear ROC % Historical Data
* Premium members only.
The historical data trend for Northern Bear'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 (Sep. 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.
Northern Bear (LSE:NTBR) has a ROC % of 23.66% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Northern Bear and its competitors.
Is Northern Bear's ROC % too high?
Northern Bear's current ROC % is 23.66%. The Construction industry median ROC % is 4.66. Northern Bear's value of 23.66% is 407.7% above this industry median. Overall, Northern Bear has a GF Score™ of 43/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Northern Bear's ROC % compare to TT and JCI?
Northern Bear's ROC % of 23.66% can be compared against companies in the Construction industry. The industry median ROC % is 4.66. Northern Bear's value of 23.66% is 407.7% above 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 Construction company?
The median ROC % among Construction companies is 4.66, based on 1,750 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. Northern Bear's current ROC % of 23.66% is 407.7% above 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 Northern Bear and its competitors. For the Construction industry, the median ROC % is 4.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northern Bear's current ROC % is 23.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northern Bear stock overvalued right now?
Based on GuruFocus' analysis, Northern Bear (LSE:NTBR) is currently considered Fairly Valued. The stock's GF Value™ is £0.90, compared to a current price of £0.98 — trading 8.3% above its estimated fair value. The current ROC % is 23.66% and 407.7% above the Construction industry median of 4.66. Northern Bear's overall GF Score™ is 43/100 with 2 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 Northern Bear (LSE:NTBR), the current ROC % is 23.66% as of Sep. 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 Northern Bear (LSE:NTBR) Overvalued in 2026?
Based on GuruFocus' analysis, Northern Bear stock appears to be overvalued.
The current stock price of £0.98 is trading 8.3% above its estimated GF Value™ of £0.90.
GuruFocus considers Northern Bear to be Fairly Valued.
Key valuation signals for LSE:NTBR:
ROC %: 23.66%
GF Value™: £0.90 vs. price of £0.98 (8.3% above fair value)
Industry Position: 407.7% above the Construction median
No single metric tells the full story. See the LSE:NTBR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northern Bear PLC is a specialist building service provider serving the support services sector. Its operating segments include Roofing activities - companies providing a comprehensive range of roofing services including slang, felting, refurbishment, and maintenance for domestic, commercial, and public sector properties; Materials handling activities - supply, service, and maintenance of forklift trucks and warehouse equipment on hire and for sale; Specialist building services activities - aggregation of other specialist building services companies providing services including building maintenance, electrical contracting, and sound insulation and Corporate and other activities - the provision of head office activity and consolidation items. It generates revenues mainly from the UK.
43GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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