ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Amram Avraham Construction Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.36%.
As of today (2026-07-09), Amram Avraham Construction Co's WACC % is 6.03%. Amram Avraham Construction Co's ROC % is 3.15% (calculated using TTM income statement data).
Amram Avraham Construction Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Amram Avraham Construction Co (XTAE:AMRM) 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, Amram Avraham Construction Co's WACC % is 6.03%. Amram Avraham Construction Co's ROC % is 3.15% (calculated using TTM income statement data).
Amram Avraham Construction Co 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.
Amram Avraham Construction Co ROC % Related Terms
Amram Avraham Construction Co 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.
Amram Avraham Construction Co (XTAE:AMRM) has a ROC % of 2.36% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Amram Avraham Construction Co and its competitors.
Is Amram Avraham Construction Co's ROC % too high?
Amram Avraham Construction Co's current ROC % is 2.36%. The Real Estate industry median ROC % is 2.17. Amram Avraham Construction Co's value of 2.36% is 8.8% above this industry median. Overall, Amram Avraham Construction Co has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Amram Avraham Construction Co's ROC % compare to CBRE and BEKE?
Amram Avraham Construction Co's ROC % of 2.36% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.17. Amram Avraham Construction Co's value of 2.36% is 8.8% 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 Real Estate company?
The median ROC % among Real Estate companies is 2.17, based on 1,755 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. Amram Avraham Construction Co's current ROC % of 2.36% is 8.8% 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 Amram Avraham Construction Co and its competitors. For the Real Estate industry, the median ROC % is 2.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Amram Avraham Construction Co's current ROC % is 2.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amram Avraham Construction Co stock overvalued right now?
Amram Avraham Construction Co (XTAE:AMRM) has a current ROC % of 2.36%. The current ROC % is 2.36% and 8.8% above the Real Estate industry median of 2.17. Amram Avraham Construction Co's overall GF Score™ is 9/100 with 5 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 Amram Avraham Construction Co (XTAE:AMRM), the current ROC % is 2.36% 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.
Amram Avraham Construction Co Business Description
Amram Avraham Construction Co Ltd is a company that operates, on its own and through corporations held by it, including through joint activities with third parties, in the field of real estate. in the entrepreneurial and profitable real estate sector in Israel. It operates in two main areas of activity which includes the field of entrepreneurial real estate in Israel that involves Locating real estate, improvement processes and initiation, establishment and sale of real estate projects through the company, consolidated companies or through a special purpose corporation and the yielding real estate field which involves cating, initiating, establishing, renting and managing real estate for investment, when sometimes the company purchases land whose current purpose is for industry storage.
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