ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Recordati SpA's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 16.33%.
As of today (2026-06-25), Recordati SpA's WACC % is 5.81%. Recordati SpA's ROC % is 13.49% (calculated using TTM income statement data).
Recordati SpA 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.
Recordati SpA (MEX:RECN) 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, Recordati SpA's WACC % is 5.81%. Recordati SpA's ROC % is 13.49% (calculated using TTM income statement data).
Recordati SpA 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.
Recordati SpA ROC % Related Terms
Recordati SpA ROC % Historical Data
* Premium members only.
The historical data trend for Recordati SpA'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.
Recordati SpA (MEX:RECN) has a ROC % of 16.33% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Recordati SpA and its competitors.
Is Recordati SpA's ROC % too high?
Recordati SpA's current ROC % is 16.33%. The Drug Manufacturers industry median ROC % is 4.44. Recordati SpA's value of 16.33% is 267.8% above this industry median. Overall, Recordati SpA has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Recordati SpA's ROC % compare to LLY and JNJ?
Recordati SpA's ROC % of 16.33% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.44. Recordati SpA's value of 16.33% is 267.8% 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 Drug Manufacturers company?
The median ROC % among Drug Manufacturers companies is 4.44, based on 985 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. Recordati SpA's current ROC % of 16.33% is 267.8% 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 Recordati SpA and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Recordati SpA's current ROC % is 16.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Recordati SpA stock overvalued right now?
Based on GuruFocus' analysis, Recordati SpA (MEX:RECN) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN1,150.23, compared to a current price of MXN1,019.79 — trading 11.3% below its estimated fair value. The current ROC % is 16.33% and 267.8% above the Drug Manufacturers industry median of 4.44. Recordati SpA's overall GF Score™ is 71/100 with 3 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 Recordati SpA (MEX:RECN), the current ROC % is 16.33% 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 Recordati SpA (MEX:RECN) Overvalued in 2026?
Based on GuruFocus' analysis, Recordati SpA stock appears to be undervalued.
The current stock price of MXN1,019.79 is trading 11.3% below its estimated GF Value™ of MXN1,150.23.
GuruFocus considers Recordati SpA to be Modestly Undervalued.
Key valuation signals for MEX:RECN:
ROC %: 16.33%
GF Value™: MXN1,150.23 vs. price of MXN1,019.79 (11.3% below fair value)
Industry Position: 267.8% above the Drug Manufacturers median
No single metric tells the full story. See the MEX:RECN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Recordati SpA is engaged in the development, production, and marketing of pharmaceutical products or of pharmaceutical chemicals. The Company operates in a broad and diverse context, which includes general medicine, specialist medicine, self-medication, and rare diseases. In addition, it is also active in the field of urology, with treatments for benign prostatic hyperplasia and male functional disorders, and in psychiatry. The Company's only operating segment is the Specialty & Primary Care segment. Its geographic areas are Europe, Australasia, America, and Africa.
71GF Score
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