ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Pine Cliff Energy's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -2.02%.
As of today (2026-06-24), Pine Cliff Energy's WACC % is 4.87%. Pine Cliff Energy's ROC % is -4.82% (calculated using TTM income statement data).
Pine Cliff Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Pine Cliff Energy (TSX:PNE) 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, Pine Cliff Energy's WACC % is 4.87%. Pine Cliff Energy's ROC % is -4.82% (calculated using TTM income statement data).
Pine Cliff Energy 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.
Pine Cliff Energy ROC % Related Terms
Pine Cliff Energy ROC % Historical Data
* Premium members only.
The historical data trend for Pine Cliff Energy'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.
Pine Cliff Energy (TSX:PNE) has a ROC % of -2.02% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Pine Cliff Energy and its competitors.
Is Pine Cliff Energy's ROC % too high?
Pine Cliff Energy's current ROC % is -2.02%. Overall, Pine Cliff Energy has a GF Score™ of 28/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pine Cliff Energy's ROC % compare to COP and EOG?
Pine Cliff Energy's ROC % of -2.02% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.63. 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 3.63, based on 998 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 Pine Cliff Energy and its competitors. For the Oil & Gas industry, the median ROC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pine Cliff Energy's current ROC % is -2.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pine Cliff Energy stock overvalued right now?
Based on GuruFocus' analysis, Pine Cliff Energy (TSX:PNE) is currently considered Modestly Undervalued. The stock's GF Value™ is C$0.77, compared to a current price of C$0.58 — trading 24.7% below its estimated fair value. The current ROC % is -2.02%. Pine Cliff Energy's overall GF Score™ is 28/100 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 Pine Cliff Energy (TSX:PNE), the current ROC % is -2.02% 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 Pine Cliff Energy (TSX:PNE) Overvalued in 2026?
Based on GuruFocus' analysis, Pine Cliff Energy stock appears to be undervalued.
The current stock price of C$0.58 is trading 24.7% below its estimated GF Value™ of C$0.77.
GuruFocus considers Pine Cliff Energy to be Modestly Undervalued.
Key valuation signals for TSX:PNE:
ROC %: -2.02%
GF Value™: C$0.77 vs. price of C$0.58 (24.7% below fair value)
No single metric tells the full story. See the TSX:PNE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pine Cliff Energy Ltd. is engaged in the acquisition, exploration, development, and production of natural gas and crude oil in the Western Canadian Sedimentary Basin and conducts many of its activities jointly with others. The company has various operations and assets, such as Central Assets, Edson Assets, Southern Assets, and others.
28GF Score
Get the complete analysis for TSX:PNE
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSX:PNE has been successfully added to your 
