ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. A Brown Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 0.76%.
As of today (2026-06-27), A Brown Co's WACC % is 8.14%. A Brown Co's ROC % is 1.31% (calculated using TTM income statement data).
A Brown Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
A Brown Co (PHS:BRN) 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, A Brown Co's WACC % is 8.14%. A Brown Co's ROC % is 1.31% (calculated using TTM income statement data).
A Brown Co 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.
A Brown Co ROC % Related Terms
A Brown Co ROC % Historical Data
* Premium members only.
The historical data trend for A Brown Co'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.
A Brown Co (PHS:BRN) has a ROC % of 0.76% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on A Brown Co and its competitors.
Is A Brown Co's ROC % too high?
A Brown Co's current ROC % is 0.76%. The Real Estate industry median ROC % is 2.19. A Brown Co's value of 0.76% is 65.3% below this industry median. Overall, A Brown Co has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does A Brown Co's ROC % compare to competitors?
A Brown Co's ROC % of 0.76% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.19. A Brown Co's value of 0.76% is 65.3% 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 Real Estate company?
The median ROC % among Real Estate companies is 2.19, based on 1,757 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. A Brown Co's current ROC % of 0.76% is 65.3% 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 A Brown Co and its competitors. For the Real Estate industry, the median ROC % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. A Brown Co's current ROC % is 0.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is A Brown Co stock overvalued right now?
Based on GuruFocus' analysis, A Brown Co (PHS:BRN) is currently considered Modestly Undervalued. The stock's GF Value™ is ₱0.74, compared to a current price of ₱0.65 — trading 12.2% below its estimated fair value. The current ROC % is 0.76% and 65.3% below the Real Estate industry median of 2.19. A Brown Co's overall GF Score™ is 58/100 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 A Brown Co (PHS:BRN), the current ROC % is 0.76% 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 A Brown Co (PHS:BRN) Overvalued in 2026?
Based on GuruFocus' analysis, A Brown Co stock appears to be undervalued.
The current stock price of ₱0.65 is trading 12.2% below its estimated GF Value™ of ₱0.74.
GuruFocus considers A Brown Co to be Modestly Undervalued.
Key valuation signals for PHS:BRN:
ROC %: 0.76%
GF Value™: ₱0.74 vs. price of ₱0.65 (12.2% below fair value)
Industry Position: 65.3% below the Real Estate median
No single metric tells the full story. See the PHS:BRN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
A Brown Co Inc is a real estate development company. It operates in the following segments: The Real estate development segment includes the development of land into a commercial and residential subdivision, the sale of lots and residential houses, and the provision of customer financing for sales; the Agricultural segment includes the development of land for palm oil production and the sale of palm oil and other palm products; Power and utilities segment includes the operating of power plants and/or purchase, generation, production supply and sale of power; Holding segment includes properties of every kind; and Services segment provides irradiation services for all types of goods. The Group derives the majority of its revenue from the Real estate development segment.
58GF Score
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