ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Eastern Platinum's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -7.43%.
As of today (2026-06-29), Eastern Platinum's WACC % is 19.94%. Eastern Platinum's ROIC % is -3.90% (calculated using TTM income statement data).
Eastern Platinum earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Eastern Platinum (TSX:ELR) 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, Eastern Platinum's WACC % is 19.94%. Eastern Platinum's ROIC % is -3.90% (calculated using TTM income statement data).
Eastern Platinum 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.
Eastern Platinum ROIC % Related Terms
Eastern Platinum ROIC % Historical Data
* Premium members only.
The historical data trend for Eastern Platinum'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 Other Precious Metals & Mining subindustry, Eastern Platinum'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.
Eastern Platinum ROIC % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Eastern Platinum's ROIC % distribution charts can be found below:
* The bar in red indicates where Eastern Platinum's ROIC % falls into.
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.
Eastern Platinum (TSX:ELR) has a ROIC % of -7.43% 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 Eastern Platinum and its competitors.
Is Eastern Platinum's ROIC % too high?
Eastern Platinum's current ROIC % is -7.43%. Overall, Eastern Platinum has a GF Score™ of 31/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Eastern Platinum's ROIC % compare to HL?
Eastern Platinum's ROIC % of -7.43% 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 Eastern Platinum and its competitors. Eastern Platinum's current ROIC % is -7.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eastern Platinum stock overvalued right now?
Based on GuruFocus' analysis, Eastern Platinum (TSX:ELR) is currently considered Significantly Overvalued. The stock's GF Value™ is C$0.12, compared to a current price of C$0.31 — trading 154.2% above its estimated fair value. The current ROIC % is -7.43%. Eastern Platinum's overall GF Score™ is 31/100 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 Eastern Platinum (TSX:ELR), the current ROIC % is -7.43% 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 Eastern Platinum (TSX:ELR) Overvalued in 2026?
Based on GuruFocus' analysis, Eastern Platinum stock appears to be overvalued.
The current stock price of C$0.31 is trading 154.2% above its estimated GF Value™ of C$0.12.
GuruFocus considers Eastern Platinum to be Significantly Overvalued.
Key valuation signals for TSX:ELR:
ROIC %: -7.43%
GF Value™: C$0.12 vs. price of C$0.31 (154.2% above fair value)
No single metric tells the full story. See the TSX:ELR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eastern Platinum Ltd owns, directly and indirectly, a number of PGM and chrome assets in the Republic of South Africa. All of the company's properties are situated on the western and eastern limbs of the Bushveld Complex, the geological environment that hosts approximately 80% of the world's PGM-bearing ore. It has three segments CRM, Eastern Limb and Corporate. Operations at the Crocodile River Mine include re-mining and processing its tailings resource, with an offtake of the chrome concentrate to Union Goal from the Zandfontein UG2 tailings facility and the processing and extraction of platinum group metals.
31GF Score
Get the complete analysis for TSX:ELR
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSX:ELR has been successfully added to your 
