ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Romande Energie Holding's annualized return on capital (ROC %) for the quarter that ended in Jun. 2025 was 1.56%.
As of today (2026-06-25), Romande Energie Holding's WACC % is 0.55%. Romande Energie Holding's ROC % is 1.05% (calculated using TTM income statement data).
Romande Energie Holding 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.
Romande Energie Holding (XSWX:REHN) 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, Romande Energie Holding's WACC % is 0.55%. Romande Energie Holding's ROC % is 1.05% (calculated using TTM income statement data).
Romande Energie Holding 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.
* 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 two times the semi-annual (Jun. 2025) 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.
Romande Energie Holding (XSWX:REHN) has a ROC % of 1.56% as of Jun. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Romande Energie Holding and its competitors.
Is Romande Energie Holding's ROC % too high?
Romande Energie Holding's current ROC % is 1.56%. The Utilities - Independent Power Producers industry median ROC % is 2.27. Romande Energie Holding's value of 1.56% is 31.1% below this industry median. Overall, Romande Energie Holding has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Romande Energie Holding's ROC % compare to competitors?
Romande Energie Holding's ROC % of 1.56% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROC % is 2.27. Romande Energie Holding's value of 1.56% is 31.1% below 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 2.27, 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. Romande Energie Holding's current ROC % of 1.56% is 31.1% below 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 Romande Energie Holding and its competitors. For the Utilities - Independent Power Producers industry, the median ROC % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Romande Energie Holding's current ROC % is 1.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Romande Energie Holding stock overvalued right now?
Based on GuruFocus' analysis, Romande Energie Holding (XSWX:REHN) is currently considered Fairly Valued. The stock's GF Value™ is CHF46.44, compared to a current price of CHF48.50 — trading 4.4% above its estimated fair value. The current ROC % is 1.56% and 31.1% below the Utilities - Independent Power Producers industry median of 2.27. Romande Energie Holding's overall GF Score™ is 71/100 with 8 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 Romande Energie Holding (XSWX:REHN), the current ROC % is 1.56% as of Jun. 2025. 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 Romande Energie Holding (XSWX:REHN) Overvalued in 2026?
Based on GuruFocus' analysis, Romande Energie Holding stock appears to be overvalued.
The current stock price of CHF48.50 is trading 4.4% above its estimated GF Value™ of CHF46.44.
GuruFocus considers Romande Energie Holding to be Fairly Valued.
Key valuation signals for XSWX:REHN:
ROC %: 1.56%
GF Value™: CHF46.44 vs. price of CHF48.50 (4.4% above fair value)
Industry Position: 31.1% below the Utilities - Independent Power Producers median
No single metric tells the full story. See the XSWX:REHN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Romande Energie Holding SA is a Swiss utility company involved in the generation, distribution, and marketing of electricity and energy services. The company's segment includes Grids; Energy Solutions; Romande Energie Services and Corporate. It generates maximum revenue from the Energy Solutions segment. The Energy Solutions business unit spans the entire kWh chain, operating through two divisions: generation and power/heating distribution; and end-markets. The Energy division's main mission is to maintain the security of supply for customers. It also develops new installations powered by renewable energy sources. The Markets division offers turnkey solutions to its various customers.
71GF Score
Get the complete analysis for XSWX:REHN
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
XSWX:REHN has been successfully added to your 
