ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Honeywell Flour Mills's annualized return on capital (ROC %) for the quarter that ended in Mar. 2025 was 16.29%.
As of today (2026-06-26), Honeywell Flour Mills's WACC % is 10.42%. Honeywell Flour Mills's ROC % is 16.29% (calculated using TTM income statement data).
Honeywell Flour Mills 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.
Honeywell Flour Mills (NSA:HFM) 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, Honeywell Flour Mills's WACC % is 10.42%. Honeywell Flour Mills's ROC % is 16.29% (calculated using TTM income statement data).
Honeywell Flour Mills 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.
* 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 one times the annual (Mar. 2025) 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.
Honeywell Flour Mills (NSA:HFM) has a ROC % of 16.29% as of Mar. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Honeywell Flour Mills and its competitors.
Is Honeywell Flour Mills' ROC % too high?
Honeywell Flour Mills' current ROC % is 16.29%. The Consumer Packaged Goods industry median ROC % is 5.14. Honeywell Flour Mills' value of 16.29% is 216.9% above this industry median. Overall, Honeywell Flour Mills has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Honeywell Flour Mills' ROC % compare to KHC and GIS?
Honeywell Flour Mills' ROC % of 16.29% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROC % is 5.14. Honeywell Flour Mills' value of 16.29% is 216.9% 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 Consumer Packaged Goods company?
The median ROC % among Consumer Packaged Goods companies is 5.14, based on 1,948 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. Honeywell Flour Mills's current ROC % of 16.29% is 216.9% 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 Honeywell Flour Mills and its competitors. For the Consumer Packaged Goods industry, the median ROC % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honeywell Flour Mills's current ROC % is 16.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honeywell Flour Mills stock overvalued right now?
Based on GuruFocus' analysis, Honeywell Flour Mills (NSA:HFM) is currently considered Significantly Overvalued. The stock's GF Value™ is ₦10.20, compared to a current price of ₦15.85 — trading 55.4% above its estimated fair value. The current ROC % is 16.29% and 216.9% above the Consumer Packaged Goods industry median of 5.14. Honeywell Flour Mills' overall GF Score™ is 70/100 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 Honeywell Flour Mills (NSA:HFM), the current ROC % is 16.29% as of Mar. 2025. 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 Honeywell Flour Mills (NSA:HFM) Overvalued in 2026?
Based on GuruFocus' analysis, Honeywell Flour Mills stock appears to be overvalued.
The current stock price of ₦15.85 is trading 55.4% above its estimated GF Value™ of ₦10.20.
GuruFocus considers Honeywell Flour Mills to be Significantly Overvalued.
Key valuation signals for NSA:HFM:
ROC %: 16.29%
GF Value™: ₦10.20 vs. price of ₦15.85 (55.4% above fair value)
Industry Position: 216.9% above the Consumer Packaged Goods median
No single metric tells the full story. See the NSA:HFM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Honeywell Flour Mills PLC is a Nigerian food manufacturing company specializing in the production and marketing of wheat-based products such as flour, semolina, whole wheat meal, noodles, and pasta. It distributes products across Nigeria through an extensive logistics and retail network. Honeywell Flour Mills is ISO-certified and part of the Flour Mills of Nigeria Plc group, benefiting from group synergies in a closely regulated sector. The Company's business reportable segments are identified by the factories located at Apapa, and Sagamu. The Apapa segment manufactures Flour, Semo and Wheat meal while Sagamu segments manufacture Noodles and Pasta. The Apapa generates the maximum revenue for the company.
70GF Score
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