ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Science Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 19.89%.
As of today (2026-06-26), Science Group's WACC % is 7.17%. Science Group's ROC % is 15.42% (calculated using TTM income statement data).
Science Group 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.
Science Group (LSE:SAG) 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, Science Group's WACC % is 7.17%. Science Group's ROC % is 15.42% (calculated using TTM income statement data).
Science Group 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.
Science Group ROC % Related Terms
Science Group ROC % Historical Data
* Premium members only.
The historical data trend for Science 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.
Science Group (LSE:SAG) has a ROC % of 19.89% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Science Group and its competitors.
Is Science Group's ROC % too high?
Science Group's current ROC % is 19.89%. The Business Services industry median ROC % is 5.93. Science Group's value of 19.89% is 235.4% above this industry median. Overall, Science Group has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Science Group's ROC % compare to VRSK and EFX?
Science Group's ROC % of 19.89% can be compared against companies in the Business Services industry. The industry median ROC % is 5.93. Science Group's value of 19.89% is 235.4% 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 Business Services company?
The median ROC % among Business Services companies is 5.93, based on 1,075 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. Science Group's current ROC % of 19.89% is 235.4% 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 Science Group and its competitors. For the Business Services industry, the median ROC % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Science Group's current ROC % is 19.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Science Group stock overvalued right now?
Based on GuruFocus' analysis, Science Group (LSE:SAG) is currently considered Modestly Overvalued. The stock's GF Value™ is £4.62, compared to a current price of £5.85 — trading 26.6% above its estimated fair value. The current ROC % is 19.89% and 235.4% above the Business Services industry median of 5.93. Science Group's overall GF Score™ is 83/100 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 Science Group (LSE:SAG), the current ROC % is 19.89% 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 Science Group (LSE:SAG) Overvalued in 2026?
Based on GuruFocus' analysis, Science Group stock appears to be overvalued.
The current stock price of £5.85 is trading 26.6% above its estimated GF Value™ of £4.62.
GuruFocus considers Science Group to be Modestly Overvalued.
Key valuation signals for LSE:SAG:
ROC %: 19.89%
GF Value™: £4.62 vs. price of £5.85 (26.6% above fair value)
Industry Position: 235.4% above the Business Services median
No single metric tells the full story. See the LSE:SAG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Science Group PLC provides outsourced science and technology-based consultancy, advisory, and product development services to a wide range of industries and markets. It operates in the Services segment, which comprises five consultancy Practises under the Sagentia brand: Medical, Innovation Regulatory, Defence, and Aviation. The Systems segments comprise two businesses: Critical Maritime Systems & Support (CMS2), which designs, manufactures and supports submarine atmosphere systems for the defence sector; and Frontier Smart Technologies Limited (Frontier), which designs and supplies radio and audio semi-conductors/modules. Its geographical segments are the UK, Other European Countries, North America, Asia, and Other, of which the majority of its revenue comes from the United Kingdom.
83GF Score
Get the complete analysis for LSE:SAG
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:SAG has been successfully added to your 
