ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Ivanhoe Electric's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -28.95%.
As of today (2026-06-25), Ivanhoe Electric's WACC % is 13.71%. Ivanhoe Electric's ROC % is 0.00% (calculated using TTM income statement data).
Ivanhoe Electric earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Ivanhoe Electric (TSX:IE) 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, Ivanhoe Electric's WACC % is 13.71%. Ivanhoe Electric's ROC % is 0.00% (calculated using TTM income statement data).
Ivanhoe Electric 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.
Ivanhoe Electric ROC % Related Terms
Ivanhoe Electric ROC % Historical Data
* Premium members only.
The historical data trend for Ivanhoe Electric'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.
Ivanhoe Electric (TSX:IE) has a ROC % of -28.95% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Ivanhoe Electric and its competitors.
Is Ivanhoe Electric's ROC % too high?
Ivanhoe Electric's current ROC % is -28.95%. Overall, Ivanhoe Electric has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ivanhoe Electric's ROC % compare to COPRD and SCCO?
Ivanhoe Electric's ROC % of -28.95% can be compared against companies in the Metals & Mining 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 Metals & Mining company?
A good ROC % depends on the Metals & Mining 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 Ivanhoe Electric and its competitors. Ivanhoe Electric's current ROC % is -28.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ivanhoe Electric stock overvalued right now?
Based on GuruFocus' analysis, Ivanhoe Electric (TSX:IE) is currently considered Modestly Overvalued. The stock's GF Value™ is C$11.05, compared to a current price of C$13.19 — trading 19.4% above its estimated fair value. The current ROC % is -28.95%. Ivanhoe Electric's overall GF Score™ is 71/100 with 3 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 Ivanhoe Electric (TSX:IE), the current ROC % is -28.95% 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 Ivanhoe Electric (TSX:IE) Overvalued in 2026?
Based on GuruFocus' analysis, Ivanhoe Electric stock appears to be overvalued.
The current stock price of C$13.19 is trading 19.4% above its estimated GF Value™ of C$11.05.
GuruFocus considers Ivanhoe Electric to be Modestly Overvalued.
Key valuation signals for TSX:IE:
ROC %: -28.95%
GF Value™: C$11.05 vs. price of C$13.19 (19.4% above fair value)
No single metric tells the full story. See the TSX:IE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ivanhoe Electric Inc is a United States-based d minerals exploration company with a focus on developing mines from mineral deposits principally located in the United States. The company has four business segments; Santa Cruz Project; critical metals; data processing services; and energy storage. It derives a majority of its revenue from Canada. The Santa Cruz Project and critical metals segments are focused on mineral project exploration and development. The data processing segment provides data analytics, geophysical modeling, and artificial intelligence services for the mineral, oil & gas, and water exploration industries. The energy storage segment develops, manufactures, and installs vanadium flow batteries for grid-scale energy storage.
71GF Score
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