ARB (ASX:ARB) ROCE %: 14.75% (As of Dec. 2025)


ASX:ARB ARB Corp Ltd ASX:ARB
91 GF Score
Price A$18.80
GF Value A$35.39
Valuation Significantly Undervalued
! 3 Warning Signs
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What is ARB ROCE %?

ARB ASX:ARB -1.98% 91 ROCE % is 14.75% as of Dec. 2025. GuruFocus rates ASX:ARB with a GF Score™ of 91/100 and a GF Value™ of A$35.39 (Significantly Undervalued). The stock has 3 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. ARB's annualized ROCE % for the quarter that ended in Dec. 2025 was 14.75%.


ARB  (ASX:ARB) 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.


ARB ROCE % Related Terms


ARB ROCE % Historical Data

* Premium members only.

The historical data trend for ARB'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.

ARB ROCE % Chart

ARB Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.72 28.88 19.91 21.44 18.33

ARB 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.89 20.90 19.36 16.66 14.75
ASX:ARB
91GF Score
ARB Corp Ltd ASX:ARB
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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ARB ROCE % Calculation

ARB'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 )
=137.295/( ( (792.269 - 96.176) + (904.774 - 102.713) )/ 2 )
=137.295/( (696.093+802.061)/ 2 )
=137.295/749.077
=18.33 %

ARB'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 )
=116.384/( ( (904.774 - 102.713) + (869.126 - 93.369) )/ 2 )
=116.384/( ( 802.061 + 775.757 )/ 2 )
=116.384/788.909
=14.75 %

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

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 14.75% mean?
ARB (ASX:ARB) has a ROCE % of 14.75% as of Dec. 2025.
Is ARB's ROCE % too high?
ARB's current ROCE % is 14.75%. The Vehicles & Parts industry median ROCE % is 7.94. ARB's value of 14.75% is 85.8% above this industry median. Overall, ARB has a GF Score™ of 91/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ARB's ROCE % compare to ORLY and AZO?
ARB's ROCE % of 14.75% can be compared against companies in the Vehicles & Parts industry. The industry median ROCE % is 7.94. ARB's value of 14.75% is 85.8% 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 ROCE % for a Vehicles & Parts company?
The median ROCE % among Vehicles & Parts companies is 7.94, based on 1,319 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. ARB's current ROCE % of 14.75% is 85.8% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Vehicles & Parts industry, the median ROCE % is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARB's current ROCE % is 14.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARB stock overvalued right now?
Based on GuruFocus' analysis, ARB (ASX:ARB) is currently considered Significantly Undervalued. The stock's GF Value™ is A$35.39, compared to a current price of A$18.80 — trading 46.9% below its estimated fair value. The current ROCE % is 14.75% and 85.8% above the Vehicles & Parts industry median of 7.94. ARB's overall GF Score™ is 91/100 with 3 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 ARB (ASX:ARB), the current ROCE % is 14.75% 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 ARB (ASX:ARB) Overvalued in 2026?

Based on GuruFocus' analysis, ARB stock appears to be undervalued. The current stock price of A$18.80 is trading 46.9% below its estimated GF Value™ of A$35.39. GuruFocus considers ARB to be Significantly Undervalued.

Key valuation signals for ASX:ARB:

  • ROCE %: 14.75%
  • GF Value™: A$35.39 vs. price of A$18.80 (46.9% below fair value)
  • GF Score™: 91/100 with 3 warning signs
  • Industry Position: 85.8% above the Vehicles & Parts median

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


ARB Business Description

Address 42-44 Garden Street, Kilsyth, Melbourne, VIC, AUS, 3137
ARB designs, manufactures, and distributes four-wheel-drive and light commercial vehicle accessories. The firm has carved a niche with aftermarket accessories including bull bars, suspension systems, differentials, and lighting. ARB operates manufacturing plants in Australia and Thailand and sales and distribution centers across several countries. The Australian division, which generates the vast majority of group earnings, distributes through the ARB store network, ARB stockists, new-vehicle dealers, and fleet operators.
91GF Score

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

A$18.80
Price
A$35.39
GF Value