Associated British Foods (LSE:ABF) ROCE %: 9.06% (As of Feb. 2026)


LSE:ABF Associated British Foods PLC LSE:ABF
83 GF Score
Price £18.85
GF Value £22.57
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Associated British Foods ROCE %?

Associated British Foods LSE:ABF +0.21% 83 ROCE % is 9.06% as of Feb. 2026. GuruFocus rates LSE:ABF with a GF Score™ of 83/100 and a GF Value™ of £22.57 (Modestly Undervalued). The stock has 2 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. Associated British Foods's annualized ROCE % for the quarter that ended in Feb. 2026 was 9.06%.

Associated British Foods  (LSE:ABF) 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.

Associated British Foods ROCE % Related Terms

Associated British Foods ROCE % Historical Data

* Premium members only.

The historical data trend for Associated British Foods'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.

Associated British Foods ROCE % Chart

Associated British Foods Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.67 8.59 10.30 14.31 10.89

Associated British Foods Semi-Annual Data
Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
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 12.43 16.24 9.98 12.04 9.06
LSE:ABF
83GF Score
Associated British Foods PLC LSE:ABF
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Associated British Foods ROCE % Calculation

Associated British Foods's annualized ROCE % for the fiscal year that ended in Aug. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Aug. 2025 )  (A: Aug. 2024 )(A: Aug. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Aug. 2025 )  (A: Aug. 2024 )(A: Aug. 2025 )
=1666/( ( (19014 - 3668) + (19291 - 4035) )/ 2 )
=1666/( (15346+15256)/ 2 )
=1666/15301
=10.89 %

Associated British Foods's ROCE % of for the quarter that ended in Feb. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Feb. 2026 )  (Q: Aug. 2025 )(Q: Feb. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Feb. 2026 )  (Q: Aug. 2025 )(Q: Feb. 2026 )
=1400/( ( (19291 - 4035) + (19626 - 3975) )/ 2 )
=1400/( ( 15256 + 15651 )/ 2 )
=1400/15453.5
=9.06 %

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

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 9.06% mean?
Associated British Foods (LSE:ABF) has a ROCE % of 9.06% as of Feb. 2026.
Is Associated British Foods' ROCE % too high?
Associated British Foods' current ROCE % is 9.06%. The Consumer Packaged Goods industry median ROCE % is 8.78. Associated British Foods' value of 9.06% is 3.2% above this industry median. Overall, Associated British Foods has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Associated British Foods' ROCE % compare to KHC and GIS?
Associated British Foods' ROCE % of 9.06% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROCE % is 8.78. Associated British Foods' value of 9.06% is 3.2% 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 Consumer Packaged Goods company?
The median ROCE % among Consumer Packaged Goods companies is 8.78, based on 1,938 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. Associated British Foods's current ROCE % of 9.06% is 3.2% 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 Consumer Packaged Goods industry, the median ROCE % is 8.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Associated British Foods's current ROCE % is 9.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Associated British Foods stock overvalued right now?
Based on GuruFocus' analysis, Associated British Foods (LSE:ABF) is currently considered Modestly Undervalued. The stock's GF Value™ is £22.57, compared to a current price of £18.85 — trading 16.5% below its estimated fair value. The current ROCE % is 9.06% and 3.2% above the Consumer Packaged Goods industry median of 8.78. Associated British Foods' overall GF Score™ is 83/100 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 Associated British Foods (LSE:ABF), the current ROCE % is 9.06% as of Feb. 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 Associated British Foods (LSE:ABF) Overvalued in 2026?

Based on GuruFocus' analysis, Associated British Foods stock appears to be undervalued. The current stock price of £18.85 is trading 16.5% below its estimated GF Value™ of £22.57. GuruFocus considers Associated British Foods to be Modestly Undervalued.

Key valuation signals for LSE:ABF:

  • ROCE %: 9.06%
  • GF Value™: £22.57 vs. price of £18.85 (16.5% below fair value)
  • GF Score™: 83/100 with 2 warning signs
  • Industry Position: 3.2% above the Consumer Packaged Goods median

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

Associated British Foods Business Description

Address 10 Grosvenor Street, Weston Centre, London, GBR, W1K 4QY
Associated British Foods is a diversified international food, ingredients, and retail group with 138,000 employees and operations in 56 countries across Europe, Africa, the Americas, Asia, and Australia. The group sells branded groceries, grows and processes sugar, supplies farmers with crop input and animal feed, and runs the multinational Primark clothing retail chain. It also supplies ingredients like bakers' yeast, enzymes, lipids, and cereal specialties. In fiscal 2025, approximately 36% of sales came from the UK, and Primark accounted for around 60% of operating profit.On April 21, 2026, ABF announced it plans to separate Primark and the food businesses. Subject to approvals, the demerger is expected to become effective at the end of 2027.
83GF Score

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

£18.85
Price
£22.57
GF Value