ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Golar LNG's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.41%.
As of today (2026-06-26), Golar LNG's WACC % is 2.67%. Golar LNG's ROC % is 4.42% (calculated using TTM income statement data).
Golar LNG 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.
Golar LNG (MEX:GLNG N) 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, Golar LNG's WACC % is 2.67%. Golar LNG's ROC % is 4.42% (calculated using TTM income statement data).
Golar LNG 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.
Golar LNG ROC % Related Terms
Golar LNG ROC % Historical Data
* Premium members only.
The historical data trend for Golar LNG'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.
Golar LNG (MEX:GLNG N) has a ROC % of 6.41% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Golar LNG and its competitors.
Is Golar LNG's ROC % too high?
Golar LNG's current ROC % is 6.41%. The Oil & Gas industry median ROC % is 3.63. Golar LNG's value of 6.41% is 76.6% above this industry median. Overall, Golar LNG has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Golar LNG's ROC % compare to PAGP and HESM?
Golar LNG's ROC % of 6.41% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.63. Golar LNG's value of 6.41% is 76.6% 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 an Oil & Gas company?
The median ROC % among Oil & Gas companies is 3.63, based on 997 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. Golar LNG's current ROC % of 6.41% is 76.6% 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 Golar LNG and its competitors. For the Oil & Gas industry, the median ROC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Golar LNG's current ROC % is 6.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Golar LNG stock overvalued right now?
Based on GuruFocus' analysis, Golar LNG (MEX:GLNG N) is currently considered Fairly Valued. The stock's GF Value™ is MXN976.75, compared to a current price of MXN985.00 — trading 0.8% above its estimated fair value. The current ROC % is 6.41% and 76.6% above the Oil & Gas industry median of 3.63. Golar LNG's overall GF Score™ is 77/100 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 Golar LNG (MEX:GLNG N), the current ROC % is 6.41% 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 Golar LNG (MEX:GLNG N) Overvalued in 2026?
Based on GuruFocus' analysis, Golar LNG stock appears to be overvalued.
The current stock price of MXN985.00 is trading 0.8% above its estimated GF Value™ of MXN976.75.
GuruFocus considers Golar LNG to be Fairly Valued.
Key valuation signals for MEX:GLNG N:
ROC %: 6.41%
GF Value™: MXN976.75 vs. price of MXN985.00 (0.8% above fair value)
Industry Position: 76.6% above the Oil & Gas median
No single metric tells the full story. See the MEX:GLNG N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Golar LNG Ltd designs, converts, owns, and operates marine infrastructure for the liquefaction of natural gas and provides floating liquefied natural gas (FLNG) services. It offers solutions for gas resource holders to develop and utilize gas reserves, including stranded, associated, flared, or underutilized resources. The company's reportable segments are: i) FLNG: includes the operations of FLNG vessels and projects, and ii) Corporate and other: includes legacy shipping segment activities, vessel management, floating storage and regasification unit services for third parties. The majority of the company's revenue is derived from the FLNG segment. Geographically, it generates the maximum revenue from Cameroon.
77GF Score
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