ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Epiroc AB's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 13.34%.
As of today (2026-06-25), Epiroc AB's WACC % is 9.77%. Epiroc AB's ROC % is 13.89% (calculated using TTM income statement data).
Epiroc AB 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.
Epiroc AB (MEX:EPIAN) 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, Epiroc AB's WACC % is 9.77%. Epiroc AB's ROC % is 13.89% (calculated using TTM income statement data).
Epiroc AB 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.
Epiroc AB ROC % Related Terms
Epiroc AB ROC % Historical Data
* Premium members only.
The historical data trend for Epiroc AB'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.
Epiroc AB (MEX:EPIAN) has a ROC % of 13.34% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Epiroc AB and its competitors.
Is Epiroc AB's ROC % too high?
Epiroc AB's current ROC % is 13.34%. The Farm & Heavy Construction Machinery industry median ROC % is 5.47. Epiroc AB's value of 13.34% is 143.9% above this industry median. Overall, Epiroc AB has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Epiroc AB's ROC % compare to CAT and DE?
Epiroc AB's ROC % of 13.34% can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median ROC % is 5.47. Epiroc AB's value of 13.34% is 143.9% 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 Farm & Heavy Construction Machinery company?
The median ROC % among Farm & Heavy Construction Machinery companies is 5.47, based on 207 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. Epiroc AB's current ROC % of 13.34% is 143.9% 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 Epiroc AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROC % is 5.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Epiroc AB's current ROC % is 13.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Epiroc AB stock overvalued right now?
Based on GuruFocus' analysis, Epiroc AB (MEX:EPIAN) is currently considered Fairly Valued. The stock's GF Value™ is MXN470.55, compared to a current price of MXN517.06 — trading 9.9% above its estimated fair value. The current ROC % is 13.34% and 143.9% above the Farm & Heavy Construction Machinery industry median of 5.47. Epiroc AB's overall GF Score™ is 94/100 with 8 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 Epiroc AB (MEX:EPIAN), the current ROC % is 13.34% 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 Epiroc AB (MEX:EPIAN) Overvalued in 2026?
Based on GuruFocus' analysis, Epiroc AB stock appears to be overvalued.
The current stock price of MXN517.06 is trading 9.9% above its estimated GF Value™ of MXN470.55.
GuruFocus considers Epiroc AB to be Fairly Valued.
Key valuation signals for MEX:EPIAN:
ROC %: 13.34%
GF Value™: MXN470.55 vs. price of MXN517.06 (9.9% above fair value)
Industry Position: 143.9% above the Farm & Heavy Construction Machinery median
No single metric tells the full story. See the MEX:EPIAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Epiroc is a global manufacturer of niche equipment and services used by mining and infrastructure customers. The company's products include hard rock drilling equipment and excavation technologies for underground and surface mining, as well as servicing and spare parts. Approximately 69% of group sales are from the aftermarket, which includes services and the sale of spare parts and consumables. Epiroc was spun out of Atlas Copco and listed as a stand-alone company on Nasdaq Stockholm in 2018.
94GF Score
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