ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. SBS Philippines's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 1.39%.
As of today (2026-06-26), SBS Philippines's WACC % is 4.87%. SBS Philippines's ROC % is 0.46% (calculated using TTM income statement data).
SBS Philippines earns returns that do not match up to its cost of capital. It will destroy value as it grows.
SBS Philippines (PHS:SBS) 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, SBS Philippines's WACC % is 4.87%. SBS Philippines's ROC % is 0.46% (calculated using TTM income statement data).
SBS Philippines 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.
SBS Philippines ROC % Related Terms
SBS Philippines ROC % Historical Data
* Premium members only.
The historical data trend for SBS Philippines'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.
SBS Philippines (PHS:SBS) has a ROC % of 1.39% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on SBS Philippines and its competitors.
Is SBS Philippines' ROC % too high?
SBS Philippines' current ROC % is 1.39%. The Chemicals industry median ROC % is 4.46. SBS Philippines' value of 1.39% is 68.8% below this industry median. Overall, SBS Philippines has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SBS Philippines' ROC % compare to DOW?
SBS Philippines' ROC % of 1.39% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.46. SBS Philippines' value of 1.39% is 68.8% 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 Chemicals company?
The median ROC % among Chemicals companies is 4.46, based on 1,586 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. SBS Philippines's current ROC % of 1.39% is 68.8% 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 SBS Philippines and its competitors. For the Chemicals industry, the median ROC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SBS Philippines's current ROC % is 1.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SBS Philippines stock overvalued right now?
Based on GuruFocus' analysis, SBS Philippines (PHS:SBS) is currently considered Fairly Valued. The stock's GF Value™ is ₱3.28, compared to a current price of ₱3.20 — trading 2.4% below its estimated fair value. The current ROC % is 1.39% and 68.8% below the Chemicals industry median of 4.46. SBS Philippines' overall GF Score™ is 69/100 with 6 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 SBS Philippines (PHS:SBS), the current ROC % is 1.39% 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 SBS Philippines (PHS:SBS) Overvalued in 2026?
Based on GuruFocus' analysis, SBS Philippines stock appears to be undervalued.
The current stock price of ₱3.20 is trading 2.4% below its estimated GF Value™ of ₱3.28.
GuruFocus considers SBS Philippines to be Fairly Valued.
Key valuation signals for PHS:SBS:
ROC %: 1.39%
GF Value™: ₱3.28 vs. price of ₱3.20 (2.4% below fair value)
Industry Position: 68.8% below the Chemicals median
No single metric tells the full story. See the PHS:SBS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SBS Philippines Corp is engaged in chemical trading and distribution. The Company offers a comprehensive selection of chemical products to service the following industries: food ingredients, industrial, animal health and nutrition including feeds and veterinary care, pharmaceutical, home and personal care and environment and infrastructure, and many others. It also provides value-added service to its customers by providing logistics management in sourcing, procuring, warehousing and transporting the chemical products and materials. It derives maximum revenue from food Ingredients.
69GF Score
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