ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Fomento de Construcciones y Contratas's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -16.73%.
Fomento de Construcciones y Contratas (MEX:FCCN) 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, Fomento de Construcciones y Contratas's WACC % is 4.24%. Fomento de Construcciones y Contratas's ROC % is 3.23% (calculated using TTM income statement data).
Fomento de Construcciones y Contratas 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.
Fomento de Construcciones y Contratas ROC % Related Terms
Fomento de Construcciones y Contratas ROC % Historical Data
* 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 (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.
Fomento de Construcciones y Contratas (MEX:FCCN) has a ROC % of -16.73% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Fomento de Construcciones y Contratas and its competitors.
Is Fomento de Construcciones y Contratas' ROC % too high?
Fomento de Construcciones y Contratas' current ROC % is -16.73%. Overall, Fomento de Construcciones y Contratas has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Fomento de Construcciones y Contratas' ROC % compare to WM and RSG?
Fomento de Construcciones y Contratas' ROC % of -16.73% can be compared against companies in the Waste Management industry. The industry median ROC % is 3.53. 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 Waste Management company?
The median ROC % among Waste Management companies is 3.53, based on 246 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. 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 Fomento de Construcciones y Contratas and its competitors. For the Waste Management industry, the median ROC % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fomento de Construcciones y Contratas's current ROC % is -16.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fomento de Construcciones y Contratas stock overvalued right now?
Fomento de Construcciones y Contratas (MEX:FCCN) has a current ROC % of -16.73%. The stock's GF Value™ is MXN226.14, compared to a current price of MXN259.00 — trading 14.5% above its estimated fair value. The current ROC % is -16.73%. Fomento de Construcciones y Contratas' overall GF Score™ is 75/100 with 9 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 Fomento de Construcciones y Contratas (MEX:FCCN), the current ROC % is -16.73% 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 Fomento de Construcciones y Contratas (MEX:FCCN) Overvalued in 2026?
Based on GuruFocus' analysis, Fomento de Construcciones y Contratas stock appears to be overvalued.
The current stock price of MXN259.00 is trading 14.5% above its estimated GF Value™ of MXN226.14.
Key valuation signals for MEX:FCCN:
ROC %: -16.73%
GF Value™: MXN226.14 vs. price of MXN259.00 (14.5% above fair value)
No single metric tells the full story. See the MEX:FCCN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fomento de Construcciones y Contratas Business Description
Fomento de Construcciones y Contratas SA is in the business of environmental services, end to end water management, construction and cement. The company's activities include services related to urban water treatment, waste recovery, end to end water cycle and also infrastructure construction projects, building construction, manufacturing of cement and concrete and operation of quarries and mineral deposits. The firm derives majority of its revenues from environmental services segment. It carries out international operations in European, the US and Latin American markets.
75GF Score
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