ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. CSL's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 8.44%.
As of today (2026-06-24), CSL's WACC % is 6.35%. CSL's ROC % is 4.21% (calculated using TTM income statement data).
CSL earns returns that do not match up to its cost of capital. It will destroy value as it grows.
CSL (STU:CSJ) 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, CSL's WACC % is 6.35%. CSL's ROC % is 4.21% (calculated using TTM income statement data).
CSL 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.
CSL ROC % Related Terms
CSL ROC % Historical Data
* Premium members only.
The historical data trend for CSL'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.
CSL (STU:CSJ) has a ROC % of 8.44% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on CSL and its competitors.
Is CSL's ROC % too high?
CSL's current ROC % is 8.44%. Overall, CSL has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CSL's ROC % compare to VRTX and REGN?
CSL's ROC % of 8.44% can be compared against companies in the Biotechnology industry. 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 Biotechnology company?
A good ROC % depends on the Biotechnology industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 CSL and its competitors. CSL's current ROC % is 8.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CSL stock overvalued right now?
Based on GuruFocus' analysis, CSL (STU:CSJ) is currently considered Significantly Undervalued. The stock's GF Value™ is €165.40, compared to a current price of €68.23 — trading 58.7% below its estimated fair value. The current ROC % is 8.44%. CSL's overall GF Score™ is 83/100 with 7 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 CSL (STU:CSJ), the current ROC % is 8.44% 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 CSL (STU:CSJ) Overvalued in 2026?
Based on GuruFocus' analysis, CSL stock appears to be undervalued.
The current stock price of €68.23 is trading 58.7% below its estimated GF Value™ of €165.40.
GuruFocus considers CSL to be Significantly Undervalued.
Key valuation signals for STU:CSJ:
ROC %: 8.44%
GF Value™: €165.40 vs. price of €68.23 (58.7% below fair value)
No single metric tells the full story. See the STU:CSJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CSL is one of the largest global biotech companies and has three main segments. CSL Behring either uses plasma-derived proteins or recombinants to treat conditions including immunodeficiencies, bleeding disorders, and neurological indications. CSL Seqirus is the world's second-largest influenza vaccination business and was acquired in fiscal 2016. CSL Vifor is an iron deficiency and nephrology business and was acquired in fiscal 2023. CSL has a strong R&D track record, and the product portfolio and pipeline include nonplasma products as the firm continues to broaden its scope. Originally formed in Australia as a government-owned entity, CSL now earns roughly half its revenue in North America and a quarter in Europe.
83GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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