ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Empresa Distribuidora y Comercializadora Norte's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.50%.
Empresa Distribuidora y Comercializadora Norte (STU:PWD1) 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, Empresa Distribuidora y Comercializadora Norte's WACC % is 16.36%. Empresa Distribuidora y Comercializadora Norte's ROC % is 4.35% (calculated using TTM income statement data).
Empresa Distribuidora y Comercializadora Norte 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.
Empresa Distribuidora y Comercializadora Norte ROC % Related Terms
Empresa Distribuidora y Comercializadora Norte ROC % Historical Data
* 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.
Empresa Distribuidora y Comercializadora Norte ROC % Chart
Empresa Distribuidora y Comercializadora Norte Annual Data
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.
Empresa Distribuidora y Comercializadora Norte (STU:PWD1) has a ROC % of 7.50% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Empresa Distribuidora y Comercializadora Norte and its competitors.
Is Empresa Distribuidora y Comercializadora Norte's ROC % too high?
Empresa Distribuidora y Comercializadora Norte's current ROC % is 7.50%. The Utilities - Regulated industry median ROC % is 4.18. Empresa Distribuidora y Comercializadora Norte's value of 7.50% is 79.4% above this industry median. Overall, Empresa Distribuidora y Comercializadora Norte has a GF Score™ of 55/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Empresa Distribuidora y Comercializadora Norte's ROC % compare to NEE and SO?
Empresa Distribuidora y Comercializadora Norte's ROC % of 7.50% can be compared against companies in the Utilities - Regulated industry. The industry median ROC % is 4.18. Empresa Distribuidora y Comercializadora Norte's value of 7.50% is 79.4% 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 - Regulated company?
The median ROC % among Utilities - Regulated companies is 4.18, based on 501 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. Empresa Distribuidora y Comercializadora Norte's current ROC % of 7.50% is 79.4% 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 Empresa Distribuidora y Comercializadora Norte and its competitors. For the Utilities - Regulated industry, the median ROC % is 4.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Empresa Distribuidora y Comercializadora Norte's current ROC % is 7.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Empresa Distribuidora y Comercializadora Norte stock overvalued right now?
Based on GuruFocus' analysis, Empresa Distribuidora y Comercializadora Norte (STU:PWD1) is currently considered Fairly Valued. The stock's GF Value™ is €19.77, compared to a current price of €21.40 — trading 8.2% above its estimated fair value. The current ROC % is 7.50% and 79.4% above the Utilities - Regulated industry median of 4.18. Empresa Distribuidora y Comercializadora Norte's overall GF Score™ is 55/100 with 9 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 Empresa Distribuidora y Comercializadora Norte (STU:PWD1), the current ROC % is 7.50% 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 Empresa Distribuidora y Comercializadora Norte (STU:PWD1) Overvalued in 2026?
Based on GuruFocus' analysis, Empresa Distribuidora y Comercializadora Norte stock appears to be overvalued.
The current stock price of €21.40 is trading 8.2% above its estimated GF Value™ of €19.77.
GuruFocus considers Empresa Distribuidora y Comercializadora Norte to be Fairly Valued.
Key valuation signals for STU:PWD1:
ROC %: 7.50%
GF Value™: €19.77 vs. price of €21.40 (8.2% above fair value)
Industry Position: 79.4% above the Utilities - Regulated median
No single metric tells the full story. See the STU:PWD1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Empresa Distribuidora y Comercializadora Norte Business Description
Empresa Distribuidora y Comercializadora Norte SA is engaged in the distribution and sale of electricity. The firm's concession area covers the northern portion of the city of Buenos Aires, mainly for residential, commercial, industrial, and public service.
55GF Score
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