ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Tropical Resorts International's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 36.31%.
As of today (2026-06-26), Tropical Resorts International's WACC % is 10.46%. Tropical Resorts International's ROC % is 14.43% (calculated using TTM income statement data).
Tropical Resorts International 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.
Tropical Resorts International (XPTY:TRES) 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, Tropical Resorts International's WACC % is 10.46%. Tropical Resorts International's ROC % is 14.43% (calculated using TTM income statement data).
Tropical Resorts International 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.
Tropical Resorts International ROC % Related Terms
Tropical Resorts International 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.
Tropical Resorts International (XPTY:TRES) has a ROC % of 36.31% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Tropical Resorts International and its competitors.
Is Tropical Resorts International's ROC % too high?
Tropical Resorts International's current ROC % is 36.31%. The Travel & Leisure industry median ROC % is 3.76. Tropical Resorts International's value of 36.31% is 865.7% above this industry median. Overall, Tropical Resorts International has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does Tropical Resorts International's ROC % compare to MAR and HLT?
Tropical Resorts International's ROC % of 36.31% can be compared against companies in the Travel & Leisure industry. The industry median ROC % is 3.76. Tropical Resorts International's value of 36.31% is 865.7% 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 Travel & Leisure company?
The median ROC % among Travel & Leisure companies is 3.76, based on 834 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. Tropical Resorts International's current ROC % of 36.31% is 865.7% 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 Tropical Resorts International and its competitors. For the Travel & Leisure industry, the median ROC % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tropical Resorts International's current ROC % is 36.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tropical Resorts International stock overvalued right now?
Tropical Resorts International (XPTY:TRES) has a current ROC % of 36.31%. The stock's GF Value™ is $11.75, compared to a current price of $10.00 — trading 14.9% below its estimated fair value. The current ROC % is 36.31% and 865.7% above the Travel & Leisure industry median of 3.76. Tropical Resorts International's overall GF Score™ is 31/100 with 1 warning sign 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 Tropical Resorts International (XPTY:TRES), the current ROC % is 36.31% 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 Tropical Resorts International (XPTY:TRES) Overvalued in 2026?
Based on GuruFocus' analysis, Tropical Resorts International stock appears to be undervalued.
The current stock price of $10.00 is trading 14.9% below its estimated GF Value™ of $11.75.
Key valuation signals for XPTY:TRES:
ROC %: 36.31%
GF Value™: $11.75 vs. price of $10.00 (14.9% below fair value)
Industry Position: 865.7% above the Travel & Leisure median
No single metric tells the full story. See the XPTY:TRES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tropical Resorts International Business Description
Tropical Resorts International Inc operates resorts mainly in Gamboa, Panama. The company operates Gamboa Rainforest resort that offers rooms and suites, swimming pool and gift shop, dining, and meetings and events space, and other amenities.
31GF Score
Get the complete analysis for XPTY:TRES
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
XPTY:TRES has been successfully added to your 
