ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Repower Energy Development's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.38%.
As of today (2026-06-24), Repower Energy Development's WACC % is 7.93%. Repower Energy Development's ROC % is 6.33% (calculated using TTM income statement data).
Repower Energy Development earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Repower Energy Development (PHS:REDC) 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, Repower Energy Development's WACC % is 7.93%. Repower Energy Development's ROC % is 6.33% (calculated using TTM income statement data).
Repower Energy Development 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 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.
Repower Energy Development (PHS:REDC) has a ROC % of 6.38% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Repower Energy Development and its competitors.
Is Repower Energy Development's ROC % too high?
Repower Energy Development's current ROC % is 6.38%. The Utilities - Independent Power Producers industry median ROC % is 2.27. Repower Energy Development's value of 6.38% is 181.7% above this industry median. Overall, Repower Energy Development has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Repower Energy Development's ROC % compare to competitors?
Repower Energy Development's ROC % of 6.38% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROC % is 2.27. Repower Energy Development's value of 6.38% is 181.7% 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 430 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. Repower Energy Development's current ROC % of 6.38% is 181.7% 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 Repower Energy Development 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. Repower Energy Development's current ROC % is 6.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Repower Energy Development stock overvalued right now?
Based on GuruFocus' analysis, Repower Energy Development (PHS:REDC) is currently considered Fairly Valued. The stock's GF Value™ is ₱8.07, compared to a current price of ₱8.00 — trading 0.9% below its estimated fair value. The current ROC % is 6.38% and 181.7% above the Utilities - Independent Power Producers industry median of 2.27. Repower Energy Development's overall GF Score™ is 61/100 with 11 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 Repower Energy Development (PHS:REDC), the current ROC % is 6.38% 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 Repower Energy Development (PHS:REDC) Overvalued in 2026?
Based on GuruFocus' analysis, Repower Energy Development stock appears to be undervalued.
The current stock price of ₱8.00 is trading 0.9% below its estimated GF Value™ of ₱8.07.
GuruFocus considers Repower Energy Development to be Fairly Valued.
Key valuation signals for PHS:REDC:
ROC %: 6.38%
GF Value™: ₱8.07 vs. price of ₱8.00 (0.9% below fair value)
Industry Position: 181.7% above the Utilities - Independent Power Producers median
No single metric tells the full story. See the PHS:REDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Repower Energy Development Corp is engages in renewable energy generation and water system management and distribution. Its renewable energy generation segment undertakes the generation of electricity through hydroelectric power plants. The Company has approximately eight hydropower plants in operation with a total combined capacity of around 16 megawatts. It generates revenue from Sale of Electricity and Interest Income.
61GF Score
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