REE (REE Automotive) ROCE %: -156.14% (As of Dec. 2025)


REE REE Automotive Ltd REE
37 GF Score
Price $0.21
GF Value $2.75
Valuation Possible Value Trap
! 8 Warning Signs
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What is REE Automotive ROCE %?

REE Automotive REE -4.43% 37 ROCE % is -156.14% as of Dec. 2025. GuruFocus rates REE with a GF Score™ of 37/100 and a GF Value™ of $2.75 (Possible Value Trap). The stock has 8 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. REE Automotive's annualized ROCE % for the quarter that ended in Dec. 2025 was -156.14%.

REE Automotive  (NAS:REE) 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.

REE Automotive ROCE % Related Terms

REE Automotive ROCE % Historical Data

* Premium members only.

The historical data trend for REE Automotive'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.

REE Automotive ROCE % Chart

REE Automotive Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial -324.05 -45.22 -77.59 -110.53 -95.08

REE Automotive Semi-Annual Data
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 -96.79 -73.71 -168.47 -69.14 -156.14
REE
37GF Score
REE Automotive Ltd REE
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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REE Automotive ROCE % Calculation

REE Automotive's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=-56.84/( ( (130.28 - 36.183) + (38.181 - 12.71) )/ 2 )
=-56.84/( (94.097+25.471)/ 2 )
=-56.84/59.784
=-95.08 %

REE Automotive'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 )
=-62.346/( ( (89.542 - 35.155) + (38.181 - 12.71) )/ 2 )
=-62.346/( ( 54.387 + 25.471 )/ 2 )
=-62.346/39.929
=-156.14 %

(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 -156.14% mean?
REE Automotive (REE) has a ROCE % of -156.14% as of Dec. 2025.
Is REE Automotive's ROCE % too high?
REE Automotive's current ROCE % is -156.14%. Overall, REE Automotive has a GF Score™ of 37/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does REE Automotive's ROCE % compare to INEO and WKSP?
REE Automotive's ROCE % of -156.14% can be compared against companies in the Vehicles & Parts industry. The industry median ROCE % is 7.94. 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 Vehicles & Parts company?
The median ROCE % among Vehicles & Parts companies is 7.94, based on 1,319 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. 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 Vehicles & Parts industry, the median ROCE % is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REE Automotive's current ROCE % is -156.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REE Automotive stock overvalued right now?
Based on GuruFocus' analysis, REE Automotive (REE) is currently considered Possible Value Trap. The stock's GF Value™ is $2.75, compared to a current price of $0.21 — trading 92.2% below its estimated fair value. The current ROCE % is -156.14%. REE Automotive's overall GF Score™ is 37/100 with 8 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 REE Automotive (REE), the current ROCE % is -156.14% 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 REE Automotive (REE) Overvalued in 2026?

Based on GuruFocus' analysis, REE Automotive stock appears to be undervalued. The current stock price of $0.21 is trading 92.2% below its estimated GF Value™ of $2.75. GuruFocus considers REE Automotive to be Possible Value Trap.

Key valuation signals for REE:

  • ROCE %: -156.14%
  • GF Value™: $2.75 vs. price of $0.21 (92.2% below fair value)
  • GF Score™: 37/100 with 8 warning signs

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

REE Automotive Business Description

Address Kibbutz Glil-Yam, Herzliya, ISR, 4690500
REE Automotive Ltd is an automotive technology company focused on building commercial electric vehicles controlled fully by-wire. The company is in early stages of commercialization and develop and produce software-defined vehicle (SDV) technology that manages vehicle operations and features through proprietarily-developed software. The company has geographical preference in Israel, Germany, United States, United Kingdom, and other regions.
37GF Score

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

$0.21
Price
$2.75
GF Value