STMH (Stem Holdings) ROCE %: 98.47% (As of Sep. 2023)


STMH Stem Holdings Inc STMH
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What is Stem Holdings ROCE %?

Stem Holdings STMH -99.00% 12 ROCE % is 98.47% as of Sep. 2023. GuruFocus rates STMH with a GF Score™ of 12/100.

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. Stem Holdings's annualized ROCE % for the quarter that ended in Sep. 2023 was 98.47%.

Stem Holdings  (OTCPK:STMH) 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.

Stem Holdings ROCE % Related Terms

Stem Holdings ROCE % Historical Data

* Premium members only.

The historical data trend for Stem Holdings'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.

Stem Holdings ROCE % Chart

Stem Holdings Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROCE %
Get a 7-Day Free Trial -156.21 -33.48 -23.18 -7.42 -47.93

Stem Holdings Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 40.39 -57.61 -51.87 -17.10 98.47
STMH
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Stem Holdings Inc STMH
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Stem Holdings ROCE % Calculation

Stem Holdings's annualized ROCE % for the fiscal year that ended in Sep. 2023 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Sep. 2023 )  (A: Sep. 2022 )(A: Sep. 2023 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Sep. 2023 )  (A: Sep. 2022 )(A: Sep. 2023 )
=-3.932/( ( (30.981 - 13.944) + (13.347 - 13.978) )/ 2 )
=-3.932/( (17.037+-0.631)/ 2 )
=-3.932/8.203
=-47.93 %

Stem Holdings's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Sep. 2023 )  (Q: Jun. 2023 )(Q: Sep. 2023 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Sep. 2023 )  (Q: Jun. 2023 )(Q: Sep. 2023 )
=9.3/( ( (25.684 - 6.164) + (13.347 - 13.978) )/ 2 )
=9.3/( ( 19.52 + -0.631 )/ 2 )
=9.3/9.4445
=98.47 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2023) 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 98.47% mean?
Stem Holdings (STMH) has a ROCE % of 98.47% as of Sep. 2023.
Is Stem Holdings' ROCE % too high?
Stem Holdings' current ROCE % is 98.47%. The Drug Manufacturers industry median ROCE % is 7.00. Stem Holdings' value of 98.47% is 1307.7% above this industry median. Overall, Stem Holdings has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Stem Holdings' ROCE % compare to NXEN and VFRM?
Stem Holdings' ROCE % of 98.47% can be compared against companies in the Drug Manufacturers industry. The industry median ROCE % is 7.00. Stem Holdings' value of 98.47% is 1307.7% 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 a Drug Manufacturers company?
The median ROCE % among Drug Manufacturers companies is 7.00, based on 958 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. Stem Holdings's current ROCE % of 98.47% is 1307.7% 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 Drug Manufacturers industry, the median ROCE % is 7.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stem Holdings's current ROCE % is 98.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stem Holdings stock overvalued right now?
Stem Holdings (STMH) has a current ROCE % of 98.47%. The current ROCE % is 98.47% and 1307.7% above the Drug Manufacturers industry median of 7.00. Stem Holdings' overall GF Score™ is 12/100. 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 Stem Holdings (STMH), the current ROCE % is 98.47% as of Sep. 2023. 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.

Stem Holdings Business Description

Address 2201 NW Corporate Boulevard, Suite 205, Boca Raton, FL, USA, 33431
Stem Holdings Inc is involved in a cannabis business. The company is engaged in the manufacture, possession, sale, distribution, and branding of cannabis and its related products. Its brand includes TJ's Gardens; Yerba Buena; Cannavore; Dose-ology and Travis X James.
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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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