Reece (ASX:REH) ROCE %: 8.02% (As of Dec. 2025)

What is Reece ROCE %?

Reece ASX:REH +7.28% 89 ROCE % is 8.02% as of Dec. 2025. GuruFocus rates ASX:REH with a GF Score™ of 89/100 and a GF Value™ of A$21.08 (Modestly Undervalued). 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. Reece's annualized ROCE % for the quarter that ended in Dec. 2025 was 8.02%.

Reece (ASX:REH) 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.

Reece ROCE % Related Terms

Reece ROCE % Historical Data

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The historical data trend for Reece'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.

Reece ROCE % Chart

Reece Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Jun25

ROCE %

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9.39

11.12

11.69

9.45

6.89

Reece 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															12.85	9.22	7.76	7.51	8.02

89GF Score

Reece Ltd ASX:REH

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

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Reece ROCE % Calculation

Reece'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 )
	=	511.004	/	( ( (10866.783 - 1945.129)	+	(7417.453 - 1510.86) )	/ 2 )
	=	511.004	/	( (8921.654	+	5906.593)	/ 2 )
	=	511.004	/	7414.1235
	=	6.89 %

Reece'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 )
	=	473.75	/	( ( (7417.453 - 1510.86)	+	(7245.254 - 1332.652) )	/ 2 )
	=	473.75	/	( ( 5906.593	+	5912.602 )	/ 2 )
	=	473.75	/	5909.5975
	=	8.02 %

(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 8.02% mean?

Reece (ASX:REH) has a ROCE % of 8.02% as of Dec. 2025.

Is Reece's ROCE % too high?

Reece's current ROCE % is 8.02%. The Industrial Distribution industry median ROCE % is 9.60. Reece's value of 8.02% is 16.5% below this industry median. Overall, Reece has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.

How does Reece's ROCE % compare to GWW and FAST?

Reece's ROCE % of 8.02% can be compared against companies in the Industrial Distribution industry. The industry median ROCE % is 9.60. Reece's value of 8.02% is 16.5% 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 ROCE % for an Industrial Distribution company?

The median ROCE % among Industrial Distribution companies is 9.60, based on 157 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. Reece's current ROCE % of 8.02% is 16.5% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Industrial Distribution industry, the median ROCE % is 9.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reece's current ROCE % is 8.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Reece stock overvalued right now?

Based on GuruFocus' analysis, Reece (ASX:REH) is currently considered Modestly Undervalued. The stock's GF Value™ is A$21.08, compared to a current price of A$16.80 — trading 20.3% below its estimated fair value. The current ROCE % is 8.02% and 16.5% below the Industrial Distribution industry median of 9.60. Reece's overall GF Score™ is 89/100 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 Reece (ASX:REH), the current ROCE % is 8.02% 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 Reece (ASX:REH) Overvalued in 2026?

Based on GuruFocus' analysis, Reece stock appears to be undervalued. The current stock price of A$16.80 is trading 20.3% below its estimated GF Value™ of A$21.08. GuruFocus considers Reece to be Modestly Undervalued.

Key valuation signals for ASX:REH:

ROCE %: 8.02%
GF Value™: A$21.08 vs. price of A$16.80 (20.3% below fair value)
GF Score™: 89/100 with 8 warning signs
Industry Position: 16.5% below the Industrial Distribution median

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

Reece Business Description

Industry Industrials Industrial Distribution

Comparable Companies ASX:SGI ASX:CYG ASX:SRH GWW FAST FERG WCC WSO TSX:TIH LSE:DPLM QXO AIT TSX:FTT OSTO:ADDT B CNM OSTO:INDT OSTO:BEIJ B POOL MSM XMTR

Other Exchanges REECF:USA

Address 57 Balmain Street, Cremorne, Sydney, VIC, AUS, 3121

Website https://group.reece.com

Reece is an Australian distributor of plumbing supplies and bathroom products, with businesses in Australia, New Zealand, and the United States. Reece Australia holds Australia's largest range of individual plumbing stock-keeping units, supporting plumbing needs for general plumbing, bathrooms, kitchens, heating and air conditioning, irrigation, refrigeration, pools, commercial and government projects, and fire services.In the Australia and New Zealand markets, Reece's trade, customers are mostly small to medium plumbing businesses working in the areas of residential repairs, renovations, or new home builds.The US business principally serves plumbers working on commercial and residential construction projects and has a network of almost 300 stores in the southern Sunbelt states.

89GF Score

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A$16.80

Price

A$21.08

GF Value

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