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 York Water Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.74%.
As of today (2026-06-25), The York Water Co's WACC % is 5.05%. The York Water Co's ROC % is 4.23% (calculated using TTM income statement data).
The York Water Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The York Water Co (NAS:YORW) 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, The York Water Co's WACC % is 5.05%. The York Water Co's ROC % is 4.23% (calculated using TTM income statement data).
The York Water 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.
The York Water Co ROC % Related Terms
The York Water Co ROC % Historical Data
* Premium members only.
The historical data trend for The York Water Co'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.
The York Water Co (YORW) has a ROC % of 3.74% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on The York Water Co and its competitors.
Is The York Water Co's ROC % too high?
The York Water Co's current ROC % is 3.74%. The Utilities - Regulated industry median ROC % is 4.18. The York Water Co's value of 3.74% is 10.5% below this industry median. Overall, The York Water Co has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The York Water Co's ROC % compare to CWCO and CDZI?
The York Water Co's ROC % of 3.74% can be compared against companies in the Utilities - Regulated industry. The industry median ROC % is 4.18. The York Water Co's value of 3.74% is 10.5% 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 - Regulated company?
The median ROC % among Utilities - Regulated companies is 4.18, based on 501 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. The York Water Co's current ROC % of 3.74% is 10.5% 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 The York Water Co and its competitors. For the Utilities - Regulated industry, the median ROC % is 4.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The York Water Co's current ROC % is 3.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The York Water Co stock overvalued right now?
Based on GuruFocus' analysis, The York Water Co (YORW) is currently considered Modestly Undervalued. The stock's GF Value™ is $38.86, compared to a current price of $30.43 — trading 21.7% below its estimated fair value. The current ROC % is 3.74% and 10.5% below the Utilities - Regulated industry median of 4.18. The York Water Co's overall GF Score™ is 71/100 with 7 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 The York Water Co (YORW), the current ROC % is 3.74% 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 The York Water Co (YORW) Overvalued in 2026?
Based on GuruFocus' analysis, The York Water Co stock appears to be undervalued.
The current stock price of $30.43 is trading 21.7% below its estimated GF Value™ of $38.86.
GuruFocus considers The York Water Co to be Modestly Undervalued.
Key valuation signals for YORW:
ROC %: 3.74%
GF Value™: $38.86 vs. price of $30.43 (21.7% below fair value)
Industry Position: 10.5% below the Utilities - Regulated median
No single metric tells the full story. See the YORW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The York Water Co is the investor-owned water utility in the United States. The primary business of the company is to impound, purify to meet or exceed safe drinking water standards and distribute water. The company also owns and operates three wastewater collection systems and twelve wastewater collection and treatment systems. The company operates within its franchised water and wastewater territory, which covers portions of municipalities within four counties in south-central Pennsylvania. It provides services to diversified, manufacturing such items as fixtures and furniture, electrical machinery, food products, paper, ordnance units, textile products, air conditioning systems, laundry detergent, barbells, and motorcycles.
71GF Score
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