TGIC (Triad Guaranty) ROC %: -16.30% (As of Sep. 2012)


What is Triad Guaranty ROC %?

Triad Guaranty TGIC ROC % is -16.30% as of Sep. 2012.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Triad Guaranty's annualized return on capital (ROC %) for the quarter that ended in Sep. 2012 was -16.30%.

As of today (2026-06-28), Triad Guaranty's WACC % is 0.00%. Triad Guaranty's ROC % is 0.00% (calculated using TTM income statement data). Triad Guaranty earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Triad Guaranty  (OTCPK:TGIC) 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, Triad Guaranty's WACC % is 0.00%. Triad Guaranty's ROC % is 0.00% (calculated using TTM income statement data). Triad Guaranty 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.

Triad Guaranty ROC % Related Terms

Triad Guaranty ROC % Historical Data

* Premium members only.

The historical data trend for Triad Guaranty'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.

Triad Guaranty ROC % Chart

Triad Guaranty Annual Data
Trend Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -8.06 -60.39 -55.87 11.97 -10.99

Triad Guaranty Quarterly Data
Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -16.85 -29.14 -17.47 -14.50 -16.30

Triad Guaranty ROC % Calculation

Triad Guaranty's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2011 is calculated as:

ROC % (A: Dec. 2011 )
=NOPAT/Average Invested Capital
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2010 ) + Invested Capital (A: Dec. 2011 ))/ count )
=-89.525 * ( 1 - 0% )/( (872.52445 + 756.9644)/ 2 )
=-89.525/814.744425
=-10.99 %

where

Invested Capital(A: Dec. 2010 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=991.625 - 93.075 - ( 38.762 - 5% * 254.729 )
=872.52445

Invested Capital(A: Dec. 2011 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=896.227 - 109.042 - ( 40.59 - 5% * 207.388 )
=756.9644

Triad Guaranty's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2012 is calculated as:

ROC % (Q: Sep. 2012 )
=NOPAT/Average Invested Capital
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2012 ) + Invested Capital (Q: Sep. 2012 ))/ count )
=-112.752 * ( 1 - 0% )/( (704.7087 + 678.58845)/ 2 )
=-112.752/691.648575
=-16.30 %

where

Invested Capital(Q: Jun. 2012 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=848.024 - 109.576 - ( 36.037 - 5% * 45.954 )
=704.7087

Invested Capital(Q: Sep. 2012 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=820.59 - 110.725 - ( 32.891 - 5% * 32.289 )
=678.58845

Note: The EBIT data used here is four times the quarterly (Sep. 2012) 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -16.30% mean?
Triad Guaranty (TGIC) has a ROC % of -16.30% as of Sep. 2012. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Triad Guaranty and its competitors.
Is Triad Guaranty's ROC % too high?
Triad Guaranty's current ROC % is -16.30%.
How does Triad Guaranty's ROC % compare to FACO and PPHI?
Triad Guaranty's ROC % of -16.30% can be compared against companies in the Insurance industry. The industry median ROC % is 3.36. 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 Insurance company?
The median ROC % among Insurance companies is 3.36, based on 372 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. 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 Triad Guaranty and its competitors. For the Insurance industry, the median ROC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Triad Guaranty's current ROC % is -16.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Triad Guaranty stock overvalued right now?
Triad Guaranty (TGIC) has a current ROC % of -16.30%. The current ROC % is -16.30%. 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 Triad Guaranty (TGIC), the current ROC % is -16.30% as of Sep. 2012. 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.

Triad Guaranty Business Description

Address 101 South Stratford Road, Winston-Salem, NC, USA, 27104
Triad Guaranty Inc is a holding company which, through its wholly-owned subsidiary, Triad Guaranty Insurance Corporation ('TGIC'), is a nationwide mortgage insurer pursuing a run-off of its existing in-force book of business.