Adairs (ASX:ADH) ROCE %: 8.33% (As of Dec. 2025)

What is Adairs ROCE %?

Adairs ASX:ADH +2.27% 82 ROCE % is 8.33% as of Dec. 2025. GuruFocus rates ASX:ADH with a GF Score™ of 82/100 and a GF Value™ of A$2.14 (Possible Value Trap). The stock has 8 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Adairs's annualized ROCE % for the quarter that ended in Dec. 2025 was 8.33%.

Adairs (ASX:ADH) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Adairs ROCE % Related Terms

Adairs ROCE % Historical Data

* Premium members only.

The historical data trend for Adairs's ROCE % 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.

Adairs ROCE % Chart

Adairs Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Jun25

ROCE %

Get a 7-Day Free Trial

23.02

15.50

11.93

10.92

8.65

Adairs Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
ROCE %	Get a 7-Day Free Trial															12.33	9.63	13.01	4.64	8.33

82GF Score

Adairs Ltd ASX:ADH

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

View Full Analysis

Adairs ROCE % Calculation

Adairs's annualized ROCE % for the fiscal year that ended in Jun. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2025 )		(A: Jun. 2024 )		(A: Jun. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2025 )		(A: Jun. 2024 )		(A: Jun. 2025 )
	=	42.401	/	( ( (610.496 - 138.511)	+	(655.947 - 147.219) )	/ 2 )
	=	42.401	/	( (471.985	+	508.728)	/ 2 )
	=	42.401	/	490.3565
	=	8.65 %

Adairs's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2025 )		(Q: Jun. 2025 )		(Q: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2025 )		(Q: Jun. 2025 )		(Q: Dec. 2025 )
	=	41.692	/	( ( (655.947 - 147.219)	+	(641.686 - 149.714) )	/ 2 )
	=	41.692	/	( ( 508.728	+	491.972 )	/ 2 )
	=	41.692	/	500.35
	=	8.33 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 8.33% mean?

Adairs (ASX:ADH) has a ROCE % of 8.33% as of Dec. 2025.

Is Adairs' ROCE % too high?

Adairs' current ROCE % is 8.33%. The Retail - Cyclical industry median ROCE % is 7.58. Adairs' value of 8.33% is 9.9% above this industry median. Overall, Adairs has a GF Score™ of 82/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.

How does Adairs' ROCE % compare to CASY and WSM?

Adairs' ROCE % of 8.33% can be compared against companies in the Retail - Cyclical industry. The industry median ROCE % is 7.58. Adairs' value of 8.33% is 9.9% 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 ROCE % for a Retail - Cyclical company?

The median ROCE % among Retail - Cyclical companies is 7.58, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Adairs's current ROCE % of 8.33% is 9.9% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Retail - Cyclical industry, the median ROCE % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adairs's current ROCE % is 8.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Adairs stock overvalued right now?

Based on GuruFocus' analysis, Adairs (ASX:ADH) is currently considered Possible Value Trap. The stock's GF Value™ is A$2.14, compared to a current price of A$1.35 — trading 36.9% below its estimated fair value. The current ROCE % is 8.33% and 9.9% above the Retail - Cyclical industry median of 7.58. Adairs' overall GF Score™ is 82/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Adairs (ASX:ADH), the current ROCE % is 8.33% as of Dec. 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 Adairs (ASX:ADH) Overvalued in 2026?

Based on GuruFocus' analysis, Adairs stock appears to be undervalued. The current stock price of A$1.35 is trading 36.9% below its estimated GF Value™ of A$2.14. GuruFocus considers Adairs to be Possible Value Trap.

Key valuation signals for ASX:ADH:

ROCE %: 8.33%
GF Value™: A$2.14 vs. price of A$1.35 (36.9% below fair value)
GF Score™: 82/100 with 8 warning signs
Industry Position: 9.9% above the Retail - Cyclical median

No single metric tells the full story. See the ASX:ADH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Adairs Business Description

Industry Consumer Cyclical Retail - Cyclical

Comparable Companies ASX:BBN ASX:CCV ASX:BAP ASX:JYC ASX:SSG ASX:BLX ASX:SHM ASX:DSK ASX:ABY ASX:TPW TSX:ATD XJAM:ASBH CASY WSM ULTA DKS SHSE:601888 TSCO BBY ADX:ADNOCDIST

Address 1 Middle Road, Level 9, Chadstone, VIC, AUS, 3148

Website https://www.adairs.com.au

Adairs Ltd is engaged in the retailing of homewares and home furnishings in Australia and New Zealand. The company's product range includes categories, such as quilt covers and coverlets, sheets, cotton flannelette, pillowcases, quilts, pillows, mattress protectors, pillow protectors, blankets, nursery products, valances, bed wraps, bedspreads, and slippers, kids beach products and towels, cushions, throws, gifts and toys, wall arts, rugs, laundry, and home care products, chairs, bedheads, storage and shelves, ottomans and bench seats, and tables, as well as pots and plants, baskets, throws, home decor, and fragrance products, mirrors, lighting products, and tableware and pets products. Its operating segments are Adairs, Focus on Furniture, and Mocka.

82GF Score

Get the complete analysis for ASX:ADH

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$1.35

Price

A$2.14

GF Value

View ASX:ADH Analysis

See ROCE % data for all stocks →