ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Exxaro Resources's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 5.68%.
As of today (2026-06-26), Exxaro Resources's WACC % is 8.15%. Exxaro Resources's ROIC % is 7.55% (calculated using TTM income statement data).
Exxaro Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Exxaro Resources (OTCPK:EXXAF) 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, Exxaro Resources's WACC % is 8.15%. Exxaro Resources's ROIC % is 7.55% (calculated using TTM income statement data).
Exxaro Resources 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.
Exxaro Resources ROIC % Related Terms
Exxaro Resources ROIC % Historical Data
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The historical data trend for Exxaro Resources's ROIC % 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.
For the Thermal Coal subindustry, Exxaro Resources'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.
Exxaro Resources ROIC % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Exxaro Resources's ROIC % distribution charts can be found below:
* The bar in red indicates where Exxaro Resources's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) 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.
Exxaro Resources (EXXAF) has a ROIC % of 5.68% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Exxaro Resources and its competitors.
Is Exxaro Resources' ROIC % too high?
Exxaro Resources' current ROIC % is 5.68%. Overall, Exxaro Resources has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Exxaro Resources' ROIC % compare to CNR?
Exxaro Resources' ROIC % of 5.68% can be compared against companies in the Other Energy Sources industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Other Energy Sources company?
A good ROIC % depends on the Other Energy Sources industry context. However, ROIC % 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 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 Exxaro Resources and its competitors. Exxaro Resources's current ROIC % is 5.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Exxaro Resources stock overvalued right now?
Based on GuruFocus' analysis, Exxaro Resources (EXXAF) is currently considered Fairly Valued. The stock's GF Value™ is $11.48, compared to a current price of $12.00 — trading 4.5% above its estimated fair value. The current ROIC % is 5.68%. Exxaro Resources' overall GF Score™ is 80/100 with 8 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 Exxaro Resources (EXXAF), the current ROIC % is 5.68% 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 Exxaro Resources (EXXAF) Overvalued in 2026?
Based on GuruFocus' analysis, Exxaro Resources stock appears to be overvalued.
The current stock price of $12.00 is trading 4.5% above its estimated GF Value™ of $11.48.
GuruFocus considers Exxaro Resources to be Fairly Valued.
Key valuation signals for EXXAF:
ROIC %: 5.68%
GF Value™: $11.48 vs. price of $12.00 (4.5% above fair value)
No single metric tells the full story. See the EXXAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Exxaro Resources Ltd is one of the South Africa-based diversified resources companies. The company's operating segments are: Coal, Energy, Metals, and Others. The majority of its revenue comes from the coal segment, whose operations are located in the Waterberg and Mpumalanga regions and are split between coal commercial operations and coal-tied operations and produce thermal and metallurgical coal, Commercial Waterberg is comprised mainly of the Grootegeluk operation, Commercial Mpumalanga comprising the Belfast and Leeuwpan operations, and Tied comprising of the Matla mine supplying its entire coal supply to Eskom; and Others comprises of the other coal affiliated operation. Geographically, the company derives majority of its revenue from the RSA region ( Republic of South Africa).
80GF Score
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