ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Goodman New Zealand and Goodman Property Services's annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was 4.88%.
Goodman New Zealand and Goodman Property Services (NZSE:GNZ) 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, Goodman New Zealand and Goodman Property Services's WACC % is 8.83%. Goodman New Zealand and Goodman Property Services's ROC % is 4.29% (calculated using TTM income statement data).
Goodman New Zealand and Goodman Property Services 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.
Goodman New Zealand and Goodman Property Services ROC % Related Terms
Goodman New Zealand and Goodman Property Services 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.
Goodman New Zealand and Goodman Property Services ROC % Chart
Goodman New Zealand and Goodman Property Services Annual Data
Note:
The Operating Income data used here is two times the semi-annual (Sep. 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.
Goodman New Zealand and Goodman Property Services (NZSE:GNZ) has a ROC % of 4.88% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Goodman New Zealand and Goodman Property Services and its competitors.
Is Goodman New Zealand and Goodman Property Services' ROC % too high?
Goodman New Zealand and Goodman Property Services' current ROC % is 4.88%. The REITs industry median ROC % is 3.74. Goodman New Zealand and Goodman Property Services' value of 4.88% is 30.5% above this industry median. Overall, Goodman New Zealand and Goodman Property Services has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Goodman New Zealand and Goodman Property Services' ROC % compare to PLD and PSA?
Goodman New Zealand and Goodman Property Services' ROC % of 4.88% can be compared against companies in the REITs industry. The industry median ROC % is 3.74. Goodman New Zealand and Goodman Property Services' value of 4.88% is 30.5% 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 REITs company?
The median ROC % among REITs companies is 3.74, based on 750 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. Goodman New Zealand and Goodman Property Services's current ROC % of 4.88% is 30.5% 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 Goodman New Zealand and Goodman Property Services and its competitors. For the REITs industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Goodman New Zealand and Goodman Property Services's current ROC % is 4.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Goodman New Zealand and Goodman Property Services stock overvalued right now?
Based on GuruFocus' analysis, Goodman New Zealand and Goodman Property Services (NZSE:GNZ) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$1.57, compared to a current price of NZ$2.08 — trading 32.5% above its estimated fair value. The current ROC % is 4.88% and 30.5% above the REITs industry median of 3.74. Goodman New Zealand and Goodman Property Services' overall GF Score™ is 79/100 with 7 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 Goodman New Zealand and Goodman Property Services (NZSE:GNZ), the current ROC % is 4.88% as of Sep. 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 Goodman New Zealand and Goodman Property Services (NZSE:GNZ) Overvalued in 2026?
Based on GuruFocus' analysis, Goodman New Zealand and Goodman Property Services stock appears to be overvalued.
The current stock price of NZ$2.08 is trading 32.5% above its estimated GF Value™ of NZ$1.57.
GuruFocus considers Goodman New Zealand and Goodman Property Services to be Significantly Overvalued.
Key valuation signals for NZSE:GNZ:
ROC %: 4.88%
GF Value™: NZ$1.57 vs. price of NZ$2.08 (32.5% above fair value)
No single metric tells the full story. See the NZSE:GNZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Goodman New Zealand and Goodman Property Services Business Description
Goodman New Zealand Ltd and Goodman Property Services Ltd, formerly known as Goodman Property Trust, is one of New Zealand's property trusts, with a portfolio composed of industrial estates, businesses, and a development bank. After selling its Christchurch assets, Goodman is 100% Auckland-centric. The focus over the next few years will be on selling lower-quality assets and redeploying capital to industrial property in strategically important locations. The investment is premised on management's view that industrial assets in premium locations will generate superior long-term returns from lower average vacancy and higher rent growth.
79GF Score
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