ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Parex Resources's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.00%.
As of today (2026-06-28), Parex Resources's WACC % is 4.70%. Parex Resources's ROC % is 10.66% (calculated using TTM income statement data).
Parex Resources generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Parex Resources (STU:QPX) 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, Parex Resources's WACC % is 4.70%. Parex Resources's ROC % is 10.66% (calculated using TTM income statement data).
Parex Resources generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Parex Resources ROC % Related Terms
Parex Resources ROC % Historical Data
* Premium members only.
The historical data trend for Parex Resources'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.
Parex Resources (STU:QPX) has a ROC % of 2.00% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Parex Resources and its competitors.
Is Parex Resources' ROC % too high?
Parex Resources' current ROC % is 2.00%. The Oil & Gas industry median ROC % is 3.66. Parex Resources' value of 2.00% is 45.3% below this industry median. Overall, Parex Resources has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Parex Resources' ROC % compare to COP and EOG?
Parex Resources' ROC % of 2.00% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.66. Parex Resources' value of 2.00% is 45.3% 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 an Oil & Gas company?
The median ROC % among Oil & Gas companies is 3.66, based on 1,002 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. Parex Resources's current ROC % of 2.00% is 45.3% 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 Parex Resources and its competitors. For the Oil & Gas industry, the median ROC % is 3.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parex Resources's current ROC % is 2.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Parex Resources stock overvalued right now?
Based on GuruFocus' analysis, Parex Resources (STU:QPX) is currently considered Fairly Valued. The stock's GF Value™ is €13.61, compared to a current price of €13.60 — trading 0.1% below its estimated fair value. The current ROC % is 2.00% and 45.3% below the Oil & Gas industry median of 3.66. Parex Resources' overall GF Score™ is 79/100 with 4 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 Parex Resources (STU:QPX), the current ROC % is 2.00% 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 Parex Resources (STU:QPX) Overvalued in 2026?
Based on GuruFocus' analysis, Parex Resources stock appears to be undervalued.
The current stock price of €13.60 is trading 0.1% below its estimated GF Value™ of €13.61.
GuruFocus considers Parex Resources to be Fairly Valued.
Key valuation signals for STU:QPX:
ROC %: 2.00%
GF Value™: €13.61 vs. price of €13.60 (0.1% below fair value)
Industry Position: 45.3% below the Oil & Gas median
No single metric tells the full story. See the STU:QPX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Parex Resources Inc engages in the exploration, development, production, and marketing of oil and natural gas. The company is focused on development in two main basins: Llanos and Magdalena. The majority of the company's properties are focused in Colombia, where it pays a royalty or tax to the government for its operations. The company's operating segments are Columbia, its key revenue-generating segment, and Canada.
79GF Score
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