ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Vulcan Steel's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 0.04%.
As of today (2026-07-02), Vulcan Steel's WACC % is 6.46%. Vulcan Steel's ROC % is -0.39% (calculated using TTM income statement data).
Vulcan Steel earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Vulcan Steel (NZSE:VSL) 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, Vulcan Steel's WACC % is 6.46%. Vulcan Steel's ROC % is -0.39% (calculated using TTM income statement data).
Vulcan Steel 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.
Vulcan Steel ROC % Related Terms
Vulcan Steel ROC % Historical Data
* Premium members only.
The historical data trend for Vulcan Steel'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 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.
Vulcan Steel (NZSE:VSL) has a ROC % of 0.04% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Vulcan Steel and its competitors.
Is Vulcan Steel's ROC % too high?
Vulcan Steel's current ROC % is 0.04%. The Steel industry median ROC % is 2.52. Vulcan Steel's value of 0.04% is 98.4% below this industry median. Overall, Vulcan Steel has a GF Score™ of 54/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vulcan Steel's ROC % compare to NUE and STLD?
Vulcan Steel's ROC % of 0.04% can be compared against companies in the Steel industry. The industry median ROC % is 2.52. Vulcan Steel's value of 0.04% is 98.4% 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 a Steel company?
The median ROC % among Steel companies is 2.52, based on 621 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. Vulcan Steel's current ROC % of 0.04% is 98.4% 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 Vulcan Steel and its competitors. For the Steel industry, the median ROC % is 2.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vulcan Steel's current ROC % is 0.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vulcan Steel stock overvalued right now?
Based on GuruFocus' analysis, Vulcan Steel (NZSE:VSL) is currently considered Modestly Undervalued. The stock's GF Value™ is NZ$7.99, compared to a current price of NZ$6.28 — trading 21.4% below its estimated fair value. The current ROC % is 0.04% and 98.4% below the Steel industry median of 2.52. Vulcan Steel's overall GF Score™ is 54/100 with 5 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 Vulcan Steel (NZSE:VSL), the current ROC % is 0.04% 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 Vulcan Steel (NZSE:VSL) Overvalued in 2026?
Based on GuruFocus' analysis, Vulcan Steel stock appears to be undervalued.
The current stock price of NZ$6.28 is trading 21.4% below its estimated GF Value™ of NZ$7.99.
GuruFocus considers Vulcan Steel to be Modestly Undervalued.
Key valuation signals for NZSE:VSL:
ROC %: 0.04%
GF Value™: NZ$7.99 vs. price of NZ$6.28 (21.4% below fair value)
No single metric tells the full story. See the NZSE:VSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vulcan Steel Ltd is a metals distributor and processor. Its products include Steel, Stainless Steel, Engineering steel, Plate processing, and Coil processing. The company has two operating segments namely, the Steel business across New Zealand and Australia which includes Steel distribution, Plate processing, and Coil processing; and Metals business across New Zealand, which includes Stainless Steel, Engineering Steel, and Aluminium.
54GF Score
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