ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Severstal PAO's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 33.77%.
As of today (2026-06-25), Severstal PAO's WACC % is 0.00%. Severstal PAO's ROC % is 0.00% (calculated using TTM income statement data).
Severstal PAO earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Severstal PAO (MIC:CHMF) 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, Severstal PAO's WACC % is 0.00%. Severstal PAO's ROC % is 0.00% (calculated using TTM income statement data).
Severstal PAO 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.
Severstal PAO ROC % Related Terms
Severstal PAO ROC % Historical Data
* Premium members only.
The historical data trend for Severstal PAO'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 two times the semi-annual (Dec. 2023) 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.
Severstal PAO (MIC:CHMF) has a ROC % of 33.77% as of Dec. 2023. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Severstal PAO and its competitors.
Is Severstal PAO's ROC % too high?
Severstal PAO's current ROC % is 33.77%. The Steel industry median ROC % is 2.61. Severstal PAO's value of 33.77% is 1193.9% above this industry median. Overall, Severstal PAO has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Severstal PAO's ROC % compare to NUE and STLD?
Severstal PAO's ROC % of 33.77% can be compared against companies in the Steel industry. The industry median ROC % is 2.61. Severstal PAO's value of 33.77% is 1193.9% 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 Steel company?
The median ROC % among Steel companies is 2.61, based on 625 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. Severstal PAO's current ROC % of 33.77% is 1193.9% 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 Severstal PAO and its competitors. For the Steel industry, the median ROC % is 2.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Severstal PAO's current ROC % is 33.77%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Severstal PAO stock overvalued right now?
Severstal PAO (MIC:CHMF) has a current ROC % of 33.77%. The current ROC % is 33.77% and 1193.9% above the Steel industry median of 2.61. Severstal PAO's overall GF Score™ is 17/100. 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 Severstal PAO (MIC:CHMF), the current ROC % is 33.77% as of Dec. 2023. 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.
Severstal PAO is a vertically integrated steel and mining company in Russia. The company has two operating divisions: Severstal Resources and Severstal Russian Steel. Its core asset is the Cherepovets steel mill, which is located within easy access of the company's mining operations, the Baltic ports, and Russia's industrial heartland. The company produces iron ore pellets, iron ore concentrates, crushed stones, ferrite strontium powder, coking & steam coal, and coking coal concentrate. These materials are provided to six industry categories: construction and service processing, tube and pipe, oil and gas, machinery, autos, and others. Construction and service processing accounts for a majority of sales. Severstal generates most of its revenue in Russia.
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