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. Third Age Health Services's annualized ROCE % for the quarter that ended in Mar. 2025 was 49.39%.
Third Age Health Services (NZSE:TAH) 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 two times the semi-annual (Mar. 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.
Third Age Health Services (NZSE:TAH) has a ROCE % of 49.39% as of Mar. 2025.
Is Third Age Health Services' ROCE % too high?
Third Age Health Services' current ROCE % is 49.39%. The Healthcare Providers & Services industry median ROCE % is 6.43. Third Age Health Services' value of 49.39% is 668.1% above this industry median. Overall, Third Age Health Services has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Third Age Health Services' ROCE % compare to HCA and THC?
Third Age Health Services' ROCE % of 49.39% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROCE % is 6.43. Third Age Health Services' value of 49.39% is 668.1% 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 Healthcare Providers & Services company?
The median ROCE % among Healthcare Providers & Services companies is 6.43, based on 645 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. Third Age Health Services's current ROCE % of 49.39% is 668.1% 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 Healthcare Providers & Services industry, the median ROCE % is 6.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Third Age Health Services's current ROCE % is 49.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Third Age Health Services stock overvalued right now?
Based on GuruFocus' analysis, Third Age Health Services (NZSE:TAH) is currently considered Modestly Overvalued. The stock's GF Value™ is NZ$3.39, compared to a current price of NZ$4.40 — trading 29.8% above its estimated fair value. The current ROCE % is 49.39% and 668.1% above the Healthcare Providers & Services industry median of 6.43. Third Age Health Services' overall GF Score™ is 87/100 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 Third Age Health Services (NZSE:TAH), the current ROCE % is 49.39% as of Mar. 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 Third Age Health Services (NZSE:TAH) Overvalued in 2026?
Based on GuruFocus' analysis, Third Age Health Services stock appears to be overvalued.
The current stock price of NZ$4.40 is trading 29.8% above its estimated GF Value™ of NZ$3.39.
GuruFocus considers Third Age Health Services to be Modestly Overvalued.
Key valuation signals for NZSE:TAH:
ROCE %: 49.39%
GF Value™: NZ$3.39 vs. price of NZ$4.40 (29.8% above fair value)
Industry Position: 668.1% above the Healthcare Providers & Services median
No single metric tells the full story. See the NZSE:TAH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Third Age Health Services Ltd is engaged in providing health care services to older adults residing in Aged Residential Care. The services offered by the company include 24/7 access to a doctor, Regular, scheduled rounds by a Practitioner, and Guaranteed locum cover. The company segment includes: Aged medical residential care services, being the provision of medical care services to the aged care sector. General practice medical services, being the provision of primary care services to the community.
87GF Score
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