ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sanima Middle Tamor Hydropower's annualized return on capital (ROC %) for the quarter that ended in Apr. 2026 was 6.58%.
As of today (2026-07-12), Sanima Middle Tamor Hydropower's WACC % is 10.23%. Sanima Middle Tamor Hydropower's ROC % is 10.22% (calculated using TTM income statement data).
Sanima Middle Tamor Hydropower earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Sanima Middle Tamor Hydropower's WACC % is 10.23%. Sanima Middle Tamor Hydropower's ROC % is 10.22% (calculated using TTM income statement data).
Sanima Middle Tamor Hydropower 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.
Sanima Middle Tamor Hydropower ROC % Related Terms
Sanima Middle Tamor Hydropower 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 (Apr. 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.
Sanima Middle Tamor Hydropower (XNEP:TAMOR) has a ROC % of 6.58% as of Apr. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sanima Middle Tamor Hydropower and its competitors.
Is Sanima Middle Tamor Hydropower's ROC % too high?
Sanima Middle Tamor Hydropower's current ROC % is 6.58%. The Utilities - Independent Power Producers industry median ROC % is 2.28. Sanima Middle Tamor Hydropower's value of 6.58% is 188.6% above this industry median. Overall, Sanima Middle Tamor Hydropower has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Sanima Middle Tamor Hydropower's ROC % compare to competitors?
Sanima Middle Tamor Hydropower's ROC % of 6.58% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROC % is 2.28. Sanima Middle Tamor Hydropower's value of 6.58% is 188.6% 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 an Utilities - Independent Power Producers company?
The median ROC % among Utilities - Independent Power Producers companies is 2.28, based on 430 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. Sanima Middle Tamor Hydropower's current ROC % of 6.58% is 188.6% 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 Sanima Middle Tamor Hydropower and its competitors. For the Utilities - Independent Power Producers industry, the median ROC % is 2.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sanima Middle Tamor Hydropower's current ROC % is 6.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sanima Middle Tamor Hydropower stock overvalued right now?
Sanima Middle Tamor Hydropower (XNEP:TAMOR) has a current ROC % of 6.58%. The current ROC % is 6.58% and 188.6% above the Utilities - Independent Power Producers industry median of 2.28. Sanima Middle Tamor Hydropower's overall GF Score™ is 39/100 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 Sanima Middle Tamor Hydropower (XNEP:TAMOR), the current ROC % is 6.58% as of Apr. 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.
Sanima Middle Tamor Hydropower Business Description
Sanima Middle Tamor Hydropower Ltd is a Special Purpose Vehicle (SPV) Company for the implementation and operation of the Sanima Middle Tamor Hydropower Project. The company is principally engaged in generating and selling hydroelectricity to the Nepal Electricity Authority. It currently operates the Middle Tamor Hydropower Project (MTHP), which is a run-of-river (RoR) project with an installed capacity of 73 MW. The headworks of the project are located in Phungling Municipality and Phaktanglung Rural Municipality and the Powerhouse (PH) is located in Mikwa Khola Rural Municipality at the right bank of the Tamor River in Taplejung district.
39GF Score
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