ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. argenx SE's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 38.23%.
As of today (2026-06-25), argenx SE's WACC % is 2.91%. argenx SE's ROC % is 43.51% (calculated using TTM income statement data).
argenx SE 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.
argenx SE (MEX:ARGXN) 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, argenx SE's WACC % is 2.91%. argenx SE's ROC % is 43.51% (calculated using TTM income statement data).
argenx SE 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.
argenx SE ROC % Related Terms
argenx SE ROC % Historical Data
* Premium members only.
The historical data trend for argenx SE'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 four times the quarterly (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.
argenx SE (MEX:ARGXN) has a ROC % of 38.23% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on argenx SE and its competitors.
Is argenx SE's ROC % too high?
argenx SE's current ROC % is 38.23%. Overall, argenx SE has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does argenx SE's ROC % compare to VRTX and REGN?
argenx SE's ROC % of 38.23% 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 argenx SE and its competitors. argenx SE's current ROC % is 38.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is argenx SE stock overvalued right now?
argenx SE (MEX:ARGXN) has a current ROC % of 38.23%. The stock's GF Value™ is MXN20,951.12, compared to a current price of MXN13,000.67 — trading 37.9% below its estimated fair value. The current ROC % is 38.23%. argenx SE's overall GF Score™ is 63/100 with 5 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 argenx SE (MEX:ARGXN), the current ROC % is 38.23% 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 argenx SE (MEX:ARGXN) Overvalued in 2026?
Based on GuruFocus' analysis, argenx SE stock appears to be undervalued.
The current stock price of MXN13,000.67 is trading 37.9% below its estimated GF Value™ of MXN20,951.12.
Key valuation signals for MEX:ARGXN:
ROC %: 38.23%
GF Value™: MXN20,951.12 vs. price of MXN13,000.67 (37.9% below fair value)
No single metric tells the full story. See the MEX:ARGXN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Argenx is a Dutch biopharmaceutical company focused on developing antibody-based therapies for rare autoimmune diseases. The company's lead product, Vyvgart (efgartigimod), was approved by the FDA in December 2021 for the treatment of generalized myasthenia gravis (gMG). In 2022, Argenx also received FDA approval for Vyvgart Hytrulo, a subcutaneous formulation of Vyvgart, offering a more convenient option compared with Vyvgart's intravenous administration. In 2024, the FDA approved Vyvgart Hytrulo for Chronic Inflammatory Demyelinating Polyneuropathy, a rare immune-mediated neuromuscular disorder of the peripheral nervous system. Argenx is focused on innovation and developing its pipeline for treatments such as primary immune thrombocytopenia, thyroid eye disease, and Sjogren's Disease.
63GF Score
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