RM (CHIX:RML) ROCE %: 19.74% (As of Nov. 2025)

What is RM ROCE %?

RM CHIX:RML -0.96% 45 ROCE % is 19.74% as of Nov. 2025. GuruFocus rates CHIX:RML with a GF Score™ of 45/100 and a GF Value™ of £0.72 (Modestly Overvalued). 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. RM's annualized ROCE % for the quarter that ended in Nov. 2025 was 19.74%.

RM (CHIX:RMl) 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.

RM ROCE % Related Terms

RM ROCE % Historical Data

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The historical data trend for RM'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.

RM ROCE % Chart

RM Annual Data

Trend

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

Nov24

Nov25

ROCE %

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3.65

-16.10

20.67

-7.20

9.50

RM Semi-Annual Data
	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23	May24	Nov24	May25	Nov25
ROCE %	Get a 7-Day Free Trial															31.53	-7.10	-7.88	-0.92	19.74

45GF Score

RM PLC CHIX:RML

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

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RM ROCE % Calculation

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

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Nov. 2025 )		(A: Nov. 2024 )		(A: Nov. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Nov. 2025 )		(A: Nov. 2024 )		(A: Nov. 2025 )
	=	9.136	/	( ( (138.501 - 48.194)	+	(145.114 - 43.049) )	/ 2 )
	=	9.136	/	( (90.307	+	102.065)	/ 2 )
	=	9.136	/	96.186
	=	9.50 %

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

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Nov. 2025 )		(Q: May. 2025 )		(Q: Nov. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Nov. 2025 )		(Q: May. 2025 )		(Q: Nov. 2025 )
	=	19.112	/	( ( (141.944 - 50.409)	+	(145.114 - 43.049) )	/ 2 )
	=	19.112	/	( ( 91.535	+	102.065 )	/ 2 )
	=	19.112	/	96.8
	=	19.74 %

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

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 19.74% mean?

RM (CHIX:RML) has a ROCE % of 19.74% as of Nov. 2025.

Is RM's ROCE % too high?

RM's current ROCE % is 19.74%. The Software industry median ROCE % is 5.27. RM's value of 19.74% is 274.6% above this industry median. Overall, RM has a GF Score™ of 45/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.

How does RM's ROCE % compare to CRM and SHOP?

RM's ROCE % of 19.74% can be compared against companies in the Software industry. The industry median ROCE % is 5.27. RM's value of 19.74% is 274.6% 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 Software company?

The median ROCE % among Software companies is 5.27, based on 2,713 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. RM's current ROCE % of 19.74% is 274.6% 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 Software industry, the median ROCE % is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RM's current ROCE % is 19.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is RM stock overvalued right now?

Based on GuruFocus' analysis, RM (CHIX:RML) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.72, compared to a current price of £0.93 — trading 29.3% above its estimated fair value. The current ROCE % is 19.74% and 274.6% above the Software industry median of 5.27. RM's overall GF Score™ is 45/100 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 RM (CHIX:RML), the current ROCE % is 19.74% as of Nov. 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 RM (CHIX:RML) Overvalued in 2026?

Based on GuruFocus' analysis, RM stock appears to be overvalued. The current stock price of £0.93 is trading 29.3% above its estimated GF Value™ of £0.72. GuruFocus considers RM to be Modestly Overvalued.

Key valuation signals for CHIX:RML:

ROCE %: 19.74%
GF Value™: £0.72 vs. price of £0.93 (29.3% above fair value)
GF Score™: 45/100 with 4 warning signs
Industry Position: 274.6% above the Software median

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

RM Business Description

Industry Technology Software

Comparable Companies LSE:TRCS LSE:SWC LSE:ELCO LSE:SPSY LSE:ACSO LSE:APTD LSE:DOTL LSE:IGP LSE:EYE LSE:TRB XTER:SAP CRM SHOP UBER NOW ADBE CDNS INTU ADP SNOW

Other Exchanges RM.:UK

Address 142B Park Drive, Milton Park, Milton, Abingdon, Oxfordshire, GBR, OX14 4SE

Website https://www.rmplc.com

RM PLC supplies products, services, and solutions to the UK and international education markets. Its activities include the supply of products and software licences, rendering of services, and delivery of its own platform solutions, along with digital assessment and exam marking solutions, IT managed services and connectivity packages, and curriculum-aligned learning resources. The Group is structured into three operating divisions: RM TTS, RM Assessment, and RM Technology. It operates in the UK, Europe, North America, Asia, the Middle East, and the rest of the world, with the majority of revenue coming from the UK and the RM TTS segment.

45GF Score

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£0.93

Price

£0.72

GF Value

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