ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Badger Infrastructure Solutions's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.86%.
As of today (2026-06-27), Badger Infrastructure Solutions's WACC % is 7.65%. Badger Infrastructure Solutions's ROC % is 8.84% (calculated using TTM income statement data).
Badger Infrastructure Solutions 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.
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, Badger Infrastructure Solutions's WACC % is 7.65%. Badger Infrastructure Solutions's ROC % is 8.84% (calculated using TTM income statement data).
Badger Infrastructure Solutions 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.
Badger Infrastructure Solutions ROC % Related Terms
Badger Infrastructure Solutions 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.
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.
Badger Infrastructure Solutions (TSX:BDGI) has a ROC % of 7.86% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Badger Infrastructure Solutions and its competitors.
Is Badger Infrastructure Solutions' ROC % too high?
Badger Infrastructure Solutions' current ROC % is 7.86%. The Construction industry median ROC % is 4.65. Badger Infrastructure Solutions' value of 7.86% is 69% above this industry median. Overall, Badger Infrastructure Solutions has a GF Score™ of 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Badger Infrastructure Solutions' ROC % compare to PWR and FIX?
Badger Infrastructure Solutions' ROC % of 7.86% can be compared against companies in the Construction industry. The industry median ROC % is 4.65. Badger Infrastructure Solutions' value of 7.86% is 69% 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 a Construction company?
The median ROC % among Construction companies is 4.65, based on 1,755 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. Badger Infrastructure Solutions's current ROC % of 7.86% is 69% 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 Badger Infrastructure Solutions and its competitors. For the Construction industry, the median ROC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Badger Infrastructure Solutions's current ROC % is 7.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Badger Infrastructure Solutions stock overvalued right now?
Based on GuruFocus' analysis, Badger Infrastructure Solutions (TSX:BDGI) is currently considered Significantly Overvalued. The stock's GF Value™ is C$55.59, compared to a current price of C$94.89 — trading 70.7% above its estimated fair value. The current ROC % is 7.86% and 69% above the Construction industry median of 4.65. Badger Infrastructure Solutions' overall GF Score™ is 91/100 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 Badger Infrastructure Solutions (TSX:BDGI), the current ROC % is 7.86% 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 Badger Infrastructure Solutions (TSX:BDGI) Overvalued in 2026?
Based on GuruFocus' analysis, Badger Infrastructure Solutions stock appears to be overvalued.
The current stock price of C$94.89 is trading 70.7% above its estimated GF Value™ of C$55.59.
GuruFocus considers Badger Infrastructure Solutions to be Significantly Overvalued.
Key valuation signals for TSX:BDGI:
ROC %: 7.86%
GF Value™: C$55.59 vs. price of C$94.89 (70.7% above fair value)
Industry Position: 69% above the Construction median
No single metric tells the full story. See the TSX:BDGI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Badger Infrastructure Solutions Business Description
Badger Infrastructure Solutions Ltd is North America's provider of non-destructive excavating and related services, with operations in both the United States and Canada. Its key technology is the Badger Hydrovac, which is used predominantly for safe excavation around critical infrastructure and in congested underground conditions. The Badger Hydrovac uses a pressurized water stream to liquefy the soil cover, which is then removed with a powerful vacuum system and deposited into a storage tank. The company manufactures and designs its truck-mounted hydrovac units into its existing and future design and manufacturing processes. It provides services to contractors and facility owners in a range of infrastructure industries, general commercial construction and industrial cleaning services.
91GF Score
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