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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. Elite Pharmaceuticals's annualized ROCE % for the quarter that ended in Mar. 2026 was 71.52%.
Elite Pharmaceuticals (OTCPK:ELTP) 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.
* 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.
(1) Note:
The EBIT data used here is four times the quarterly (Mar. 2026) 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.
Elite Pharmaceuticals (ELTP) has a ROCE % of 71.52% as of Mar. 2026.
Is Elite Pharmaceuticals' ROCE % too high?
Elite Pharmaceuticals' current ROCE % is 71.52%. The Drug Manufacturers industry median ROCE % is 7.03. Elite Pharmaceuticals' value of 71.52% is 917.4% above this industry median. Overall, Elite Pharmaceuticals has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Elite Pharmaceuticals' ROCE % compare to EOLS and EBS?
Elite Pharmaceuticals' ROCE % of 71.52% can be compared against companies in the Drug Manufacturers industry. The industry median ROCE % is 7.03. Elite Pharmaceuticals' value of 71.52% is 917.4% 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 Drug Manufacturers company?
The median ROCE % among Drug Manufacturers companies is 7.03, based on 963 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. Elite Pharmaceuticals's current ROCE % of 71.52% is 917.4% 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 Drug Manufacturers industry, the median ROCE % is 7.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elite Pharmaceuticals's current ROCE % is 71.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elite Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Elite Pharmaceuticals (ELTP) is currently considered Possible Value Trap. The stock's GF Value™ is $0.57, compared to a current price of $0.38 — trading 33.5% below its estimated fair value. The current ROCE % is 71.52% and 917.4% above the Drug Manufacturers industry median of 7.03. Elite Pharmaceuticals' overall GF Score™ is 60/100 with 2 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 Elite Pharmaceuticals (ELTP), the current ROCE % is 71.52% as of Mar. 2026. 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 Elite Pharmaceuticals (ELTP) Overvalued in 2026?
Based on GuruFocus' analysis, Elite Pharmaceuticals stock appears to be undervalued.
The current stock price of $0.38 is trading 33.5% below its estimated GF Value™ of $0.57.
GuruFocus considers Elite Pharmaceuticals to be Possible Value Trap.
Key valuation signals for ELTP:
ROCE %: 71.52%
GF Value™: $0.57 vs. price of $0.38 (33.5% below fair value)
Industry Position: 917.4% above the Drug Manufacturers median
No single metric tells the full story. See the ELTP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elite Pharmaceuticals Inc is a pharmaceutical company. It is principally engaged in the development and manufacture of oral, controlled-release products, using proprietary know-how and technology. The company's operating segment includes Abbreviated New Drug Applications (ANDA) and New Drug Applications (NDA). It generates maximum revenue from the ANDA segment. The company focuses on developing pain management products; manufacturing a line of generic pharmaceutical products with approved Abbreviated New Drug Applications; developing additional generic pharmaceutical products; development of other products in its pipeline including the products with its partners; and commercialization of new products.
60GF Score
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