Rainbow Rare Earths (FRA:RR1) ROCE %: -56.94% (As of Dec. 2025)


FRA:RR1 Rainbow Rare Earths Ltd FRA:RR1
31 GF Score
Price €0.21
GF Value €0.15
Valuation Significantly Overvalued
! 3 Warning Signs
View Full Analysis

What is Rainbow Rare Earths ROCE %?

Rainbow Rare Earths FRA:RR1 -6.25% 31 ROCE % is -56.94% as of Dec. 2025. GuruFocus rates FRA:RR1 with a GF Score™ of 31/100 and a GF Value™ of €0.15 (Significantly Overvalued). The stock has 3 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. Rainbow Rare Earths's annualized ROCE % for the quarter that ended in Dec. 2025 was -56.94%.

Rainbow Rare Earths  (FRA:RR1) 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.

Rainbow Rare Earths ROCE % Related Terms

Rainbow Rare Earths ROCE % Historical Data

* Premium members only.

The historical data trend for Rainbow Rare Earths'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.

Rainbow Rare Earths ROCE % Chart

Rainbow Rare Earths 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 -24.68 -30.12 -88.01 -31.40 -15.23

Rainbow Rare Earths 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 -18.07 -37.19 -18.24 -9.44 -56.94
FRA:RR1
31GF Score
Rainbow Rare Earths Ltd FRA:RR1
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Rainbow Rare Earths ROCE % Calculation

Rainbow Rare Earths'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 )
=-2.372/( ( (15.119 - 1.991) + (19.43 - 1.415) )/ 2 )
=-2.372/( (13.128+18.015)/ 2 )
=-2.372/15.5715
=-15.23 %

Rainbow Rare Earths'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 )
=-9.704/( ( (19.43 - 1.415) + (17.337 - 1.269) )/ 2 )
=-9.704/( ( 18.015 + 16.068 )/ 2 )
=-9.704/17.0415
=-56.94 %

(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 -56.94% mean?
Rainbow Rare Earths (FRA:RR1) has a ROCE % of -56.94% as of Dec. 2025.
Is Rainbow Rare Earths' ROCE % too high?
Rainbow Rare Earths' current ROCE % is -56.94%. Overall, Rainbow Rare Earths has a GF Score™ of 31/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rainbow Rare Earths' ROCE % compare to competitors?
Rainbow Rare Earths' ROCE % of -56.94% 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. Rainbow Rare Earths's current ROCE % is -56.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rainbow Rare Earths stock overvalued right now?
Based on GuruFocus' analysis, Rainbow Rare Earths (FRA:RR1) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.15, compared to a current price of €0.21 — trading 40% above its estimated fair value. The current ROCE % is -56.94%. Rainbow Rare Earths' overall GF Score™ is 31/100 with 3 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 Rainbow Rare Earths (FRA:RR1), the current ROCE % is -56.94% 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 Rainbow Rare Earths (FRA:RR1) Overvalued in 2026?

Based on GuruFocus' analysis, Rainbow Rare Earths stock appears to be overvalued. The current stock price of €0.21 is trading 40% above its estimated GF Value™ of €0.15. GuruFocus considers Rainbow Rare Earths to be Significantly Overvalued.

Key valuation signals for FRA:RR1:

  • ROCE %: -56.94%
  • GF Value™: €0.15 vs. price of €0.21 (40% above fair value)
  • GF Score™: 31/100 with 3 warning signs

No single metric tells the full story. See the FRA:RR1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Rainbow Rare Earths Business Description

Other Exchanges RBWRF:USARBW:UK
Address St Julian\'s Avenue, Connaught House, Saint Peter Port, GGY, GY1 1GZ
Rainbow Rare Earths Ltd is focused on the development of an independent and ethical supply chain of the rare earth elements that are driving the green energy transition. The company is advancing two projects, Phalaborwa in South Africa and Uberaba in Brazil, which are intended to produce rare earth elements for industrial, energy, and defence applications.
31GF Score

Get the complete analysis for FRA:RR1

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

€0.21
Price
€0.15
GF Value