ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Resources & Energy Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -20.01%.
As of today (2026-07-04), Resources & Energy Group's WACC % is 18.49%. Resources & Energy Group's ROIC % is -14.60% (calculated using TTM income statement data).
Resources & Energy Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Resources & Energy Group (OTCPK:REEGF) 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, Resources & Energy Group's WACC % is 18.49%. Resources & Energy Group's ROIC % is -14.60% (calculated using TTM income statement data).
Resources & Energy Group 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.
* 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 Gold subindustry, Resources & Energy Group'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.
Resources & Energy Group ROIC % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Resources & Energy Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Resources & Energy Group'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.
Resources & Energy Group (REEGF) has a ROIC % of -20.01% 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 Resources & Energy Group and its competitors.
Is Resources & Energy Group's ROIC % too high?
Resources & Energy Group's current ROIC % is -20.01%.
How does Resources & Energy Group's ROIC % compare to NEM and AU?
Resources & Energy Group's ROIC % of -20.01% can be compared against companies in the Metals & Mining 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 a Metals & Mining company?
A good ROIC % depends on the Metals & Mining 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 Resources & Energy Group and its competitors. Resources & Energy Group's current ROIC % is -20.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Resources & Energy Group stock overvalued right now?
Resources & Energy Group (REEGF) has a current ROIC % of -20.01%. The current ROIC % is -20.01%. 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 Resources & Energy Group (REEGF), the current ROIC % is -20.01% 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.
Resources & Energy Group Ltd is an independent mineral resources explorer, developer, and producer holding mining leases in Western Australia. The company is currently focused on the development of its flagship East Menzies Gold Project (EMGP), located north of Kalgoorlie in Western Australia. The project represents a package of several square kilometers of contiguous mining, exploration, and prospecting licenses, which are located within the orogenic lode gold province. The company generates revenue from the sale of gold. It has two operating segments: gold mine exploration and development, which generates maximum revenue, and other activities (mainly corporate costs).
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