ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Pharmala Biotech Holdings's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was -61.67%.
As of today (2026-07-11), Pharmala Biotech Holdings's WACC % is 9.26%. Pharmala Biotech Holdings's ROC % is -70.85% (calculated using TTM income statement data).
Pharmala Biotech Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Pharmala Biotech Holdings's WACC % is 9.26%. Pharmala Biotech Holdings's ROC % is -70.85% (calculated using TTM income statement data).
Pharmala Biotech Holdings 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 four times the quarterly (Feb. 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.
Pharmala Biotech Holdings (MDXXF) has a ROC % of -61.67% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Pharmala Biotech Holdings and its competitors.
Is Pharmala Biotech Holdings' ROC % too high?
Pharmala Biotech Holdings' current ROC % is -61.67%. Overall, Pharmala Biotech Holdings has a GF Score™ of 35/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pharmala Biotech Holdings' ROC % compare to VRTX and REGN?
Pharmala Biotech Holdings' ROC % of -61.67% can be compared against companies in the Biotechnology 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 a Biotechnology company?
A good ROC % depends on the Biotechnology 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 Pharmala Biotech Holdings and its competitors. Pharmala Biotech Holdings's current ROC % is -61.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pharmala Biotech Holdings stock overvalued right now?
Based on GuruFocus' analysis, Pharmala Biotech Holdings (MDXXF) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.15, compared to a current price of $0.11 — trading 28.2% below its estimated fair value. The current ROC % is -61.67%. Pharmala Biotech Holdings' overall GF Score™ is 35/100 with 1 warning sign 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 Pharmala Biotech Holdings (MDXXF), the current ROC % is -61.67% as of Feb. 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 Pharmala Biotech Holdings (MDXXF) Overvalued in 2026?
Based on GuruFocus' analysis, Pharmala Biotech Holdings stock appears to be undervalued.
The current stock price of $0.11 is trading 28.2% below its estimated GF Value™ of $0.15.
GuruFocus considers Pharmala Biotech Holdings to be Modestly Undervalued.
Key valuation signals for MDXXF:
ROC %: -61.67%
GF Value™: $0.15 vs. price of $0.11 (28.2% below fair value)
No single metric tells the full story. See the MDXXF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pharmala Biotech Holdings Inc is a Canadian Biotechnology company focused on the development, manufacture and sales of MDMA and MDXX class molecules in service to the burgeoning clinical research community and growing commercial use cases in select jurisdictions. The company produces its MDMA active pharmaceutical ingredient under the LaNeo brand through Good Manufacturing Practice (GMP) processes, aiming to address shortages for clinical trials investigating treatments for various disorders. It generates revenue from the sale of tablets, raw MDMA and MDXX compounds/formulations, and royalties from licensing of its IP.
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