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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 %. BUA Foods's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 47.67%.
As of today (2026-08-16), BUA Foods's WACC % is 10.69%. BUA Foods's ROC % is 58.31% (calculated using TTM income statement data).
BUA Foods 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.
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, BUA Foods's WACC % is 10.69%. BUA Foods's ROC % is 58.31% (calculated using TTM income statement data).
BUA Foods 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.
BUA Foods ROC % Related Terms
BUA Foods ROC % Historical Data
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The historical data trend for BUA Foods'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.
BUA Foods (NSA:BUAFOODS) has a ROC % of 47.67% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on BUA Foods and its competitors.
Is BUA Foods' ROC % too high?
BUA Foods' current ROC % is 47.67%. The Consumer Packaged Goods industry median ROC % is 5.31. BUA Foods' value of 47.67% is 797.7% above this industry median. Overall, BUA Foods has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BUA Foods' ROC % compare to KHC and GIS?
BUA Foods' ROC % of 47.67% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROC % is 5.31. BUA Foods' value of 47.67% is 797.7% 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 Consumer Packaged Goods company?
The median ROC % among Consumer Packaged Goods companies is 5.31, based on 1,947 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. BUA Foods's current ROC % of 47.67% is 797.7% 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 BUA Foods and its competitors. For the Consumer Packaged Goods industry, the median ROC % is 5.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BUA Foods's current ROC % is 47.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BUA Foods stock overvalued right now?
Based on GuruFocus' analysis, BUA Foods (NSA:BUAFOODS) is currently considered Modestly Overvalued. The stock's GF Value™ is ₦584.56, compared to a current price of ₦760.60 — trading 30.1% above its estimated fair value. The current ROC % is 47.67% and 797.7% above the Consumer Packaged Goods industry median of 5.31. BUA Foods' overall GF Score™ is 91/100 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 BUA Foods (NSA:BUAFOODS), the current ROC % is 47.67% 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.
Is BUA Foods (NSA:BUAFOODS) Overvalued in 2026?
Based on GuruFocus' analysis, BUA Foods stock appears to be overvalued.
The current stock price of ₦760.60 is trading 30.1% above its estimated GF Value™ of ₦584.56.
GuruFocus considers BUA Foods to be Modestly Overvalued.
Key valuation signals for NSA:BUAFOODS:
ROC %: 47.67%
GF Value™: ₦584.56 vs. price of ₦760.60 (30.1% above fair value)
Industry Position: 797.7% above the Consumer Packaged Goods median
No single metric tells the full story. See the NSA:BUAFOODS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BUA Foods PLC is involved in the food and fast-moving consumer goods business which processes, manufactures, and distributes food as well as packaged food. The company's business operations comprise five divisions, including Sugar, Flour, Pasta, Rice, and Edible Oils. It has four segments Flour segment, Sugar segment, Pasta segment, and Others. Maximum revenue is from sales of Flour.
91GF Score
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