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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Kauno Energija AB's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 31.75%.
As of today (2026-07-29), Kauno Energija AB's WACC % is 6.00%. Kauno Energija AB's ROC % is 10.03% (calculated using TTM income statement data).
Kauno Energija AB 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.
Kauno Energija AB (OVSE:KNR1L) 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, Kauno Energija AB's WACC % is 6.00%. Kauno Energija AB's ROC % is 10.03% (calculated using TTM income statement data).
Kauno Energija AB 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.
Kauno Energija AB ROC % Related Terms
Kauno Energija AB ROC % Historical Data
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The historical data trend for Kauno Energija AB'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 four times the quarterly (Mar. 2026) 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.
Kauno Energija AB (OVSE:KNR1L) has a ROC % of 31.75% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Kauno Energija AB and its competitors.
Is Kauno Energija AB's ROC % too high?
Kauno Energija AB's current ROC % is 31.75%. The Utilities - Independent Power Producers industry median ROC % is 2.27. Kauno Energija AB's value of 31.75% is 1298.7% above this industry median. Overall, Kauno Energija AB has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kauno Energija AB's ROC % compare to competitors?
Kauno Energija AB's ROC % of 31.75% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROC % is 2.27. Kauno Energija AB's value of 31.75% is 1298.7% 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 an Utilities - Independent Power Producers company?
The median ROC % among Utilities - Independent Power Producers companies is 2.27, based on 435 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. Kauno Energija AB's current ROC % of 31.75% is 1298.7% 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 Kauno Energija AB and its competitors. For the Utilities - Independent Power Producers industry, the median ROC % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kauno Energija AB's current ROC % is 31.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kauno Energija AB stock overvalued right now?
Based on GuruFocus' analysis, Kauno Energija AB (OVSE:KNR1L) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.41, compared to a current price of €2.04 — trading 44.7% above its estimated fair value. The current ROC % is 31.75% and 1298.7% above the Utilities - Independent Power Producers industry median of 2.27. Kauno Energija AB's overall GF Score™ is 60/100 with 3 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 Kauno Energija AB (OVSE:KNR1L), the current ROC % is 31.75% as of Mar. 2026. 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 Kauno Energija AB (OVSE:KNR1L) Overvalued in 2026?
Based on GuruFocus' analysis, Kauno Energija AB stock appears to be overvalued.
The current stock price of €2.04 is trading 44.7% above its estimated GF Value™ of €1.41.
GuruFocus considers Kauno Energija AB to be Significantly Overvalued.
Key valuation signals for OVSE:KNR1L:
ROC %: 31.75%
GF Value™: €1.41 vs. price of €2.04 (44.7% above fair value)
Industry Position: 1298.7% above the Utilities - Independent Power Producers median
No single metric tells the full story. See the OVSE:KNR1L stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kauno Energija AB is a company engaged in the supply of heat and hot water production and sale of electricity, and the maintenance of collector-tunnels. In addition, the company is also involved in electricity generation and distribution. The company carries out supervision of indoor heat and hot water supply systems, repair and maintenance of heat unit equipment, and provides rental services for premises. The company generates a vast majority of its revenues from heat supplies.
60GF Score
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