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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. SOLV Energy's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 18.74%.
As of today (2026-08-15), SOLV Energy's WACC % is 11.26%. SOLV Energy's ROC % is 7.79% (calculated using TTM income statement data).
SOLV Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, SOLV Energy's WACC % is 11.26%. SOLV Energy's ROC % is 7.79% (calculated using TTM income statement data).
SOLV Energy 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.
SOLV Energy ROC % Related Terms
SOLV Energy ROC % Historical Data
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The historical data trend for SOLV Energy'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 (Jun. 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.
SOLV Energy (MWH) has a ROC % of 18.74% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on SOLV Energy and its competitors.
Is SOLV Energy's ROC % too high?
SOLV Energy's current ROC % is 18.74%. The Utilities - Independent Power Producers industry median ROC % is 2.31. SOLV Energy's value of 18.74% is 713% above this industry median. Overall, SOLV Energy has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does SOLV Energy's ROC % compare to ORA and CWEN?
SOLV Energy's ROC % of 18.74% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROC % is 2.31. SOLV Energy's value of 18.74% is 713% 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 Utilities - Independent Power Producers company?
The median ROC % among Utilities - Independent Power Producers companies is 2.31, based on 438 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. SOLV Energy's current ROC % of 18.74% is 713% 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 SOLV Energy and its competitors. For the Utilities - Independent Power Producers industry, the median ROC % is 2.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SOLV Energy's current ROC % is 18.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SOLV Energy stock overvalued right now?
SOLV Energy (MWH) has a current ROC % of 18.74%. The current ROC % is 18.74% and 713% above the Utilities - Independent Power Producers industry median of 2.31. SOLV Energy's overall GF Score™ is 16/100 with 2 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 SOLV Energy (MWH), the current ROC % is 18.74% as of Jun. 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.
SOLV Energy Inc is a provider of infrastructure services to the power industry, including engineering, procurement, construction, testing, commissioning, operations, maintenance and repowering. It specializes in designing, building and maintaining utility-scale solar and battery storage projects and related T&D infrastructure. The company's projects include: The Eldorado Solar Project, Gravel Pit Solar Project, and Vikings Solar-plus-Storage Project. It operates in one reportable segment which derives revenue through providing EPC, O&M and Development services throughout the Unites Sates. The company derives maximum of revenue from its EPC contracts.
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