ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Eregli Demir Ve Celik Fabrikalari TAS's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.01%.
Eregli Demir Ve Celik Fabrikalari TAS (OTCPK:ERELY) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Eregli Demir Ve Celik Fabrikalari TAS's WACC % is 7.28%. Eregli Demir Ve Celik Fabrikalari TAS's ROIC % is 0.41% (calculated using TTM income statement data).
Eregli Demir Ve Celik Fabrikalari TAS earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Eregli Demir Ve Celik Fabrikalari TAS ROIC % Related Terms
Eregli Demir Ve Celik Fabrikalari TAS ROIC % Historical 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.
Eregli Demir Ve Celik Fabrikalari TAS ROIC % Chart
For the Steel subindustry, Eregli Demir Ve Celik Fabrikalari TAS's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Eregli Demir Ve Celik Fabrikalari TAS ROIC % vs Steel Industry
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Eregli Demir Ve Celik Fabrikalari TAS (ERELY) has a ROIC % of 1.01% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Eregli Demir Ve Celik Fabrikalari TAS and its competitors.
Is Eregli Demir Ve Celik Fabrikalari TAS's ROIC % too high?
Eregli Demir Ve Celik Fabrikalari TAS's current ROIC % is 1.01%. The Steel industry median ROIC % is 2.61. Eregli Demir Ve Celik Fabrikalari TAS's value of 1.01% is 61.3% below this industry median. Overall, Eregli Demir Ve Celik Fabrikalari TAS has a GF Score™ of 92/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Eregli Demir Ve Celik Fabrikalari TAS's ROIC % compare to NUE and STLD?
Eregli Demir Ve Celik Fabrikalari TAS's ROIC % of 1.01% can be compared against companies in the Steel industry. The industry median ROIC % is 2.61. Eregli Demir Ve Celik Fabrikalari TAS's value of 1.01% is 61.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Steel company?
The median ROIC % among Steel companies is 2.61, based on 625 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eregli Demir Ve Celik Fabrikalari TAS's current ROIC % of 1.01% is 61.3% below 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Eregli Demir Ve Celik Fabrikalari TAS and its competitors. For the Steel industry, the median ROIC % is 2.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eregli Demir Ve Celik Fabrikalari TAS's current ROIC % is 1.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eregli Demir Ve Celik Fabrikalari TAS stock overvalued right now?
Based on GuruFocus' analysis, Eregli Demir Ve Celik Fabrikalari TAS (ERELY) is currently considered Significantly Overvalued. The stock's GF Value™ is $6.75, compared to a current price of $9.00 — trading 33.3% above its estimated fair value. The current ROIC % is 1.01% and 61.3% below the Steel industry median of 2.61. Eregli Demir Ve Celik Fabrikalari TAS's overall GF Score™ is 92/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Eregli Demir Ve Celik Fabrikalari TAS (ERELY), the current ROIC % is 1.01% 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 Eregli Demir Ve Celik Fabrikalari TAS (ERELY) Overvalued in 2026?
Based on GuruFocus' analysis, Eregli Demir Ve Celik Fabrikalari TAS stock appears to be overvalued.
The current stock price of $9.00 is trading 33.3% above its estimated GF Value™ of $6.75.
GuruFocus considers Eregli Demir Ve Celik Fabrikalari TAS to be Significantly Overvalued.
Key valuation signals for ERELY:
ROIC %: 1.01%
GF Value™: $6.75 vs. price of $9.00 (33.3% above fair value)
No single metric tells the full story. See the ERELY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eregli Demir Ve Celik Fabrikalari TAS Business Description
Eregli Demir Ve Celik Fabrikalari TAS is a Turkey-based company engaged in production of flat steel, long steel and other steel products. The company also provides engineering and project management services, as well as port services. As well, the company owns an iron ore mining arm. The company's steel products include hot-rolled product, cold-rolled product, galvanized products, metal packaging steel, billet, wire-rod, etc. These products are used in the automotive sector, manufacturing industry, projected works, consumer products, packaging industries and others. Most of the company's revenue comes from the Turkish domestic market.
92GF Score
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