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. Oil & Gas Development Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 16.75%.
Oil & Gas Development Co (KAR:OGDC) 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.
Oil & Gas Development Co (KAR:OGDC) has a ROCE % of 16.75% as of Mar. 2026.
Is Oil & Gas Development Co's ROCE % too high?
Oil & Gas Development Co's current ROCE % is 16.75%. The Oil & Gas industry median ROCE % is 6.79. Oil & Gas Development Co's value of 16.75% is 146.7% above this industry median. Overall, Oil & Gas Development Co has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Oil & Gas Development Co's ROCE % compare to COP and EOG?
Oil & Gas Development Co's ROCE % of 16.75% can be compared against companies in the Oil & Gas industry. The industry median ROCE % is 6.79. Oil & Gas Development Co's value of 16.75% is 146.7% 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 Oil & Gas company?
The median ROCE % among Oil & Gas companies is 6.79, based on 977 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. Oil & Gas Development Co's current ROCE % of 16.75% is 146.7% 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 Oil & Gas industry, the median ROCE % is 6.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oil & Gas Development Co's current ROCE % is 16.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oil & Gas Development Co stock overvalued right now?
Based on GuruFocus' analysis, Oil & Gas Development Co (KAR:OGDC) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨170.61, compared to a current price of ₨338.17 — trading 98.2% above its estimated fair value. The current ROCE % is 16.75% and 146.7% above the Oil & Gas industry median of 6.79. Oil & Gas Development Co's overall GF Score™ is 86/100 with 7 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 Oil & Gas Development Co (KAR:OGDC), the current ROCE % is 16.75% 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 Oil & Gas Development Co (KAR:OGDC) Overvalued in 2026?
Based on GuruFocus' analysis, Oil & Gas Development Co stock appears to be overvalued.
The current stock price of ₨338.17 is trading 98.2% above its estimated GF Value™ of ₨170.61.
GuruFocus considers Oil & Gas Development Co to be Significantly Overvalued.
Key valuation signals for KAR:OGDC:
ROCE %: 16.75%
GF Value™: ₨170.61 vs. price of ₨338.17 (98.2% above fair value)
Industry Position: 146.7% above the Oil & Gas median
No single metric tells the full story. See the KAR:OGDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Oil & Gas Development Co Ltd is a Pakistani state-owned oil and gas exploration and production company. It operates a broad portfolio of oil and gas fields across Pakistan, focusing on exploring, developing, producing, and selling crude oil, natural gas, liquefied petroleum gas, and sulfur. The company generates revenue through the sale of these petroleum products, supplying sectors like power generation, fertilizer, and distribution companies. The company also pursues opportunities to expand domestically and internationally, including involvement in mining and energy projects beyond Pakistan.
86GF Score
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