ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Applied Aerospace & Defense's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 6.24%.
As of today (2026-07-13), Applied Aerospace & Defense's WACC % is 11.43%. Applied Aerospace & Defense's ROIC % is 6.24% (calculated using TTM income statement data).
Applied Aerospace & Defense earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Applied Aerospace & Defense's WACC % is 11.43%. Applied Aerospace & Defense's ROIC % is 6.24% (calculated using TTM income statement data).
Applied Aerospace & Defense 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.
Applied Aerospace & Defense ROIC % Related Terms
Applied Aerospace & Defense 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.
Applied Aerospace & Defense ROIC % Chart
Applied Aerospace & Defense Annual Data
Trend
Dec24
Dec25
ROIC %
3.74
6.24
Applied Aerospace & Defense Semi-Annual Data
Dec24
Dec25
ROIC %
3.74
6.24
AADX vs YSS, ACHR, LUNR: ROIC % Comparison
For the Aerospace & Defense subindustry, Applied Aerospace & Defense'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.
Applied Aerospace & Defense ROIC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Applied Aerospace & Defense's ROIC % distribution charts can be found below:
* The bar in red indicates where Applied Aerospace & Defense's ROIC % falls into.
Note:
The Operating Income data used here is one times the 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.
Applied Aerospace & Defense (AADX) has a ROIC % of 6.24% 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 Applied Aerospace & Defense and its competitors.
Is Applied Aerospace & Defense's ROIC % too high?
Applied Aerospace & Defense's current ROIC % is 6.24%. The Aerospace & Defense industry median ROIC % is 4.24. Applied Aerospace & Defense's value of 6.24% is 47.2% above this industry median. Overall, Applied Aerospace & Defense has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Applied Aerospace & Defense's ROIC % compare to YSS and ACHR?
Applied Aerospace & Defense's ROIC % of 6.24% can be compared against companies in the Aerospace & Defense industry. The industry median ROIC % is 4.24. Applied Aerospace & Defense's value of 6.24% is 47.2% 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 ROIC % for an Aerospace & Defense company?
The median ROIC % among Aerospace & Defense companies is 4.24, based on 354 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. Applied Aerospace & Defense's current ROIC % of 6.24% is 47.2% 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 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 Applied Aerospace & Defense and its competitors. For the Aerospace & Defense industry, the median ROIC % is 4.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Aerospace & Defense's current ROIC % is 6.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Aerospace & Defense stock overvalued right now?
Applied Aerospace & Defense (AADX) has a current ROIC % of 6.24%. The current ROIC % is 6.24% and 47.2% above the Aerospace & Defense industry median of 4.24. Applied Aerospace & Defense's overall GF Score™ is 11/100 with 3 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 Applied Aerospace & Defense (AADX), the current ROIC % is 6.24% 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.
Applied Aerospace & Defense Inc specializes in providing engineering and vertically integrated manufacturing solutions for space and defense technology companies. The company builds complex hardware for extreme operating environments, combining deep material science and IP-enabled process expertise with the ability to enable rapid prototyping, enhance new product development, and responsively scale production. The majority of the company's revenue is derived from the sales of Defense Aviation and Airborne Systems, followed by Space and Launch Systems, C5ISR and Precision Strike Systems.
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