Fortescue (ASX:FMG) ROCE %: 19.87% (As of Dec. 2025)


ASX:FMG Fortescue Ltd ASX:FMG
78 GF Score
Price A$19.25
GF Value A$19.97
Valuation Fairly Valued
! 6 Warning Signs
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What is Fortescue ROCE %?

Fortescue ASX:FMG -0.10% 78 ROCE % is 19.87% as of Dec. 2025. GuruFocus rates ASX:FMG with a GF Score™ of 78/100 and a GF Value™ of A$19.97 (Fairly Valued). The stock has 6 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. Fortescue's annualized ROCE % for the quarter that ended in Dec. 2025 was 19.87%.

Fortescue  (ASX:FMG) 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.

Fortescue ROCE % Related Terms

Fortescue ROCE % Historical Data

* Premium members only.

The historical data trend for Fortescue'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.

Fortescue ROCE % Chart

Fortescue 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 62.62 36.59 27.43 31.69 18.50

Fortescue 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 36.90 25.48 17.47 19.65 19.87
ASX:FMG
78GF Score
Fortescue Ltd ASX:FMG
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Fortescue ROCE % Calculation

Fortescue'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 )
=7761.408/( ( (45270.36 - 4045.116) + (46871.04 - 4190.208) )/ 2 )
=7761.408/( (41225.244+42680.832)/ 2 )
=7761.408/41953.038
=18.50 %

Fortescue'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 )
=8569.47/( ( (46871.04 - 4190.208) + (47186.265 - 3630.06) )/ 2 )
=8569.47/( ( 42680.832 + 43556.205 )/ 2 )
=8569.47/43118.5185
=19.87 %

(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 19.87% mean?
Fortescue (ASX:FMG) has a ROCE % of 19.87% as of Dec. 2025.
Is Fortescue's ROCE % too high?
Fortescue's current ROCE % is 19.87%. Overall, Fortescue has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fortescue's ROCE % compare to competitors?
Fortescue's ROCE % of 19.87% can be compared against companies in the Metals & Mining industry. 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 Metals & Mining company?
A good ROCE % depends on the Metals & Mining industry context. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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. Fortescue's current ROCE % is 19.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fortescue stock overvalued right now?
Based on GuruFocus' analysis, Fortescue (ASX:FMG) is currently considered Fairly Valued. The stock's GF Value™ is A$19.97, compared to a current price of A$19.25 — trading 3.6% below its estimated fair value. The current ROCE % is 19.87%. Fortescue's overall GF Score™ is 78/100 with 6 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 Fortescue (ASX:FMG), the current ROCE % is 19.87% 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 Fortescue (ASX:FMG) Overvalued in 2026?

Based on GuruFocus' analysis, Fortescue stock appears to be undervalued. The current stock price of A$19.25 is trading 3.6% below its estimated GF Value™ of A$19.97. GuruFocus considers Fortescue to be Fairly Valued.

Key valuation signals for ASX:FMG:

  • ROCE %: 19.87%
  • GF Value™: A$19.97 vs. price of A$19.25 (3.6% below fair value)
  • GF Score™: 78/100 with 6 warning signs

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

Fortescue Business Description

Address 87 Adelaide Terrace, Level 2, East Perth, Perth, WA, AUS, 6004
Fortescue is an Australia-based iron ore miner. It has grown from obscurity at the start of 2008 to become the world's fourth-largest producer. Growth was fueled by debt, now repaid. Expansion from 55 million metric tons in fiscal 2012 to about 195 million metric tons in 2025 means Fortescue supplies around 10% of global seaborne iron ore. Further expansion to about 210 million metric tons is likely once its 22 million metric ton Iron Bridge magnetite mine ramps up, likely in 2028. However, with longer-term demand likely to decline as China's economy matures, its future margins are likely to be below historical averages. More recently, Fortescue diversified into copper and green energy. It has big ambitions here, but its efforts are at an early stage.
78GF Score

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

A$19.25
Price
A$19.97
GF Value