Waterco (ASX:WAT) ROCE %: 11.55% (As of Dec. 2025)

What is Waterco ROCE %?

Waterco ASX:WAT 86 ROCE % is 11.55% as of Dec. 2025. GuruFocus rates ASX:WAT with a GF Score™ of 86/100 and a GF Value™ of A$7.63 (Significantly Undervalued). The stock has 4 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. Waterco's annualized ROCE % for the quarter that ended in Dec. 2025 was 11.55%.

Waterco (ASX:WAT) 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.

Waterco ROCE % Related Terms

Waterco ROCE % Historical Data

* Premium members only.

The historical data trend for Waterco'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.

Waterco ROCE % Chart

Waterco Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Jun25

ROCE %

Get a 7-Day Free Trial

6.18

9.21

7.73

9.71

6.54

Waterco 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															11.87	9.10	8.38	5.38	11.55

86GF Score

Waterco Ltd ASX:WAT

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

View Full Analysis

Waterco ROCE % Calculation

Waterco'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 )
	=	15.456	/	( ( (339.3 - 79.995)	+	(264.243 - 51.132) )	/ 2 )
	=	15.456	/	( (259.305	+	213.111)	/ 2 )
	=	15.456	/	236.208
	=	6.54 %

Waterco'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 )
	=	22.672	/	( ( (264.243 - 51.132)	+	(280.164 - 100.574) )	/ 2 )
	=	22.672	/	( ( 213.111	+	179.59 )	/ 2 )
	=	22.672	/	196.3505
	=	11.55 %

(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 11.55% mean?

Waterco (ASX:WAT) has a ROCE % of 11.55% as of Dec. 2025.

Is Waterco's ROCE % too high?

Waterco's current ROCE % is 11.55%. The Industrial Products industry median ROCE % is 7.10. Waterco's value of 11.55% is 62.7% above this industry median. Overall, Waterco has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.

How does Waterco's ROCE % compare to VLTO and ZWS?

Waterco's ROCE % of 11.55% can be compared against companies in the Industrial Products industry. The industry median ROCE % is 7.10. Waterco's value of 11.55% is 62.7% 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 an Industrial Products company?

The median ROCE % among Industrial Products companies is 7.10, based on 3,032 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. Waterco's current ROCE % of 11.55% is 62.7% 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 Industrial Products industry, the median ROCE % is 7.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Waterco's current ROCE % is 11.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Waterco stock overvalued right now?

Based on GuruFocus' analysis, Waterco (ASX:WAT) is currently considered Significantly Undervalued. The stock's GF Value™ is A$7.63, compared to a current price of A$5.20 — trading 31.8% below its estimated fair value. The current ROCE % is 11.55% and 62.7% above the Industrial Products industry median of 7.10. Waterco's overall GF Score™ is 86/100 with 4 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 Waterco (ASX:WAT), the current ROCE % is 11.55% 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 Waterco (ASX:WAT) Overvalued in 2026?

Based on GuruFocus' analysis, Waterco stock appears to be undervalued. The current stock price of A$5.20 is trading 31.8% below its estimated GF Value™ of A$7.63. GuruFocus considers Waterco to be Significantly Undervalued.

Key valuation signals for ASX:WAT:

ROCE %: 11.55%
GF Value™: A$7.63 vs. price of A$5.20 (31.8% below fair value)
GF Score™: 86/100 with 4 warning signs
Industry Position: 62.7% above the Industrial Products median

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

Waterco Business Description

Industry Industrials Industrial Products

Comparable Companies ASX:FLC ASX:ECT ASX:EGL ASX:PWN ASX:DEM ASX:AEI ASX:PET VLTO SZSE:300390 ZWS TSE:6370 TSE:6368 OSTO:MTRS SHSE:600388 CECO HKSE:00586 TPE:6944 PCT ASX:SRL TSE:6013

Other Exchanges 3W4:Germany

Address 36 South Street, Rydalmere, Sydney, NSW, AUS, 2116

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

Waterco Ltd designs, manufactures, and distributes filtration and sanitisation products for swimming pools, spas, aquaculture, and water purification sectors. The company serves residential, commercial, and industrial markets in various countries. Waterco operates manufacturing and R&D facilities in Australia, New Zealand, Malaysia, China, and other countries. It also franchises Swimart, a pool and spa retail network in Australia and New Zealand, and is the exclusive distributor of Zane Solar Pool Heating systems. Waterco's product range includes pool equipment, water treatment systems, chemicals, and solar heating solutions. The company generates revenue predominantly through the sales of pool and spa equipment, water treatment systems, and franchising operations.

86GF Score

Get the complete analysis for ASX:WAT

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

A$5.20

Price

A$7.63

GF Value

View ASX:WAT Analysis

See ROCE % data for all stocks →