ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Continental Seeds and Chemicals's annualized return on capital (ROC %) for the quarter that ended in Mar. 2025 was 0.82%.
As of today (2026-06-26), Continental Seeds and Chemicals's WACC % is 13.05%. Continental Seeds and Chemicals's ROC % is 0.82% (calculated using TTM income statement data).
Continental Seeds and Chemicals earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Continental Seeds and Chemicals (NSE:CONTI) 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, Continental Seeds and Chemicals's WACC % is 13.05%. Continental Seeds and Chemicals's ROC % is 0.82% (calculated using TTM income statement data).
Continental Seeds and Chemicals 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.
Continental Seeds and Chemicals ROC % Related Terms
Continental Seeds and Chemicals ROC % Historical Data
* 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.
Continental Seeds and Chemicals (NSE:CONTI) has a ROC % of 0.82% as of Mar. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Continental Seeds and Chemicals and its competitors.
Is Continental Seeds and Chemicals' ROC % too high?
Continental Seeds and Chemicals' current ROC % is 0.82%. The Agriculture industry median ROC % is 5.48. Continental Seeds and Chemicals' value of 0.82% is 85% below this industry median. Overall, Continental Seeds and Chemicals has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Continental Seeds and Chemicals' ROC % compare to CTVA and CF?
Continental Seeds and Chemicals' ROC % of 0.82% can be compared against companies in the Agriculture industry. The industry median ROC % is 5.48. Continental Seeds and Chemicals' value of 0.82% is 85% below 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 Agriculture company?
The median ROC % among Agriculture companies is 5.48, based on 258 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. Continental Seeds and Chemicals's current ROC % of 0.82% is 85% below 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 Continental Seeds and Chemicals and its competitors. For the Agriculture industry, the median ROC % is 5.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Continental Seeds and Chemicals's current ROC % is 0.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Continental Seeds and Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Continental Seeds and Chemicals (NSE:CONTI) is currently considered Possible Value Trap. The stock's GF Value™ is ₹19.11, compared to a current price of ₹11.75 — trading 38.5% below its estimated fair value. The current ROC % is 0.82% and 85% below the Agriculture industry median of 5.48. Continental Seeds and Chemicals' overall GF Score™ is 67/100 with 4 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 Continental Seeds and Chemicals (NSE:CONTI), the current ROC % is 0.82% 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 Continental Seeds and Chemicals (NSE:CONTI) Overvalued in 2026?
Based on GuruFocus' analysis, Continental Seeds and Chemicals stock appears to be undervalued.
The current stock price of ₹11.75 is trading 38.5% below its estimated GF Value™ of ₹19.11.
GuruFocus considers Continental Seeds and Chemicals to be Possible Value Trap.
Key valuation signals for NSE:CONTI:
ROC %: 0.82%
GF Value™: ₹19.11 vs. price of ₹11.75 (38.5% below fair value)
Industry Position: 85% below the Agriculture median
No single metric tells the full story. See the NSE:CONTI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Continental Seeds and Chemicals Business Description
Continental Seeds and Chemicals Ltd is engaged in the business of developing, processing, grading, and supplying all kinds of agricultural foundation and certified seeds, and trading of Mentha Oil.
67GF Score
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