ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Property For Industry's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 4.07%.
As of today (2026-06-28), Property For Industry's WACC % is 8.47%. Property For Industry's ROC % is 4.03% (calculated using TTM income statement data).
Property For Industry earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Property For Industry (NZSE:PFI) 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, Property For Industry's WACC % is 8.47%. Property For Industry's ROC % is 4.03% (calculated using TTM income statement data).
Property For Industry 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.
* 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 two times the semi-annual (Dec. 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.
Property For Industry (NZSE:PFI) has a ROC % of 4.07% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Property For Industry and its competitors.
Is Property For Industry's ROC % too high?
Property For Industry's current ROC % is 4.07%. The REITs industry median ROC % is 3.74. Property For Industry's value of 4.07% is 8.8% above this industry median. Overall, Property For Industry has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Property For Industry's ROC % compare to PLD and PSA?
Property For Industry's ROC % of 4.07% can be compared against companies in the REITs industry. The industry median ROC % is 3.74. Property For Industry's value of 4.07% is 8.8% 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 749 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. Property For Industry's current ROC % of 4.07% is 8.8% 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 Property For Industry 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. Property For Industry's current ROC % is 4.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Property For Industry stock overvalued right now?
Based on GuruFocus' analysis, Property For Industry (NZSE:PFI) is currently considered Fairly Valued. The stock's GF Value™ is NZ$2.33, compared to a current price of NZ$2.42 — trading 3.9% above its estimated fair value. The current ROC % is 4.07% and 8.8% above the REITs industry median of 3.74. Property For Industry's overall GF Score™ is 84/100 with 8 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 Property For Industry (NZSE:PFI), the current ROC % is 4.07% as of Dec. 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 Property For Industry (NZSE:PFI) Overvalued in 2026?
Based on GuruFocus' analysis, Property For Industry stock appears to be overvalued.
The current stock price of NZ$2.42 is trading 3.9% above its estimated GF Value™ of NZ$2.33.
GuruFocus considers Property For Industry to be Fairly Valued.
Key valuation signals for NZSE:PFI:
ROC %: 4.07%
GF Value™: NZ$2.33 vs. price of NZ$2.42 (3.9% above fair value)
No single metric tells the full story. See the NZSE:PFI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Property For Industry Ltd is a New Zealand-based industrial property investment company. The company's portfolio is predominantly composed of industrial properties. Its investment properties are solely located in New Zealand, with the majority in Auckland and the remaining in other New Zealand cities. Its tenants encompass large enterprises such as Fisher and Paykel Appliances, Fletcher Building Products, Brambles, and Cottonsoft, among others. Rental and management fee income represents nearly all of its operating revenue.
84GF Score
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