ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Addus HomeCare's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 8.53%.
As of today (2026-06-24), Addus HomeCare's WACC % is 9.73%. Addus HomeCare's ROIC % is 8.80% (calculated using TTM income statement data).
Addus HomeCare earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Addus HomeCare (NAS:ADUS) 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, Addus HomeCare's WACC % is 9.73%. Addus HomeCare's ROIC % is 8.80% (calculated using TTM income statement data).
Addus HomeCare 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.
Addus HomeCare ROIC % Related Terms
Addus HomeCare ROIC % Historical Data
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The historical data trend for Addus HomeCare'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 Medical Care Facilities subindustry, Addus HomeCare'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.
Addus HomeCare ROIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Addus HomeCare's ROIC % distribution charts can be found below:
* The bar in red indicates where Addus HomeCare'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.
Addus HomeCare (ADUS) has a ROIC % of 8.53% 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 Addus HomeCare and its competitors.
Is Addus HomeCare's ROIC % too high?
Addus HomeCare's current ROIC % is 8.53%. The Healthcare Providers & Services industry median ROIC % is 3.06. Addus HomeCare's value of 8.53% is 178.8% above this industry median. Overall, Addus HomeCare has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Addus HomeCare's ROIC % compare to SGRY and SNDA?
Addus HomeCare's ROIC % of 8.53% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.06. Addus HomeCare's value of 8.53% is 178.8% 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 a Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.06, based on 671 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. Addus HomeCare's current ROIC % of 8.53% is 178.8% 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 Addus HomeCare and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Addus HomeCare's current ROIC % is 8.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Addus HomeCare stock overvalued right now?
Based on GuruFocus' analysis, Addus HomeCare (ADUS) is currently considered Modestly Undervalued. The stock's GF Value™ is $123.39, compared to a current price of $97.96 — trading 20.6% below its estimated fair value. The current ROIC % is 8.53% and 178.8% above the Healthcare Providers & Services industry median of 3.06. Addus HomeCare's overall GF Score™ is 92/100 with 2 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 Addus HomeCare (ADUS), the current ROIC % is 8.53% 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 Addus HomeCare (ADUS) Overvalued in 2026?
Based on GuruFocus' analysis, Addus HomeCare stock appears to be undervalued.
The current stock price of $97.96 is trading 20.6% below its estimated GF Value™ of $123.39.
GuruFocus considers Addus HomeCare to be Modestly Undervalued.
Key valuation signals for ADUS:
ROIC %: 8.53%
GF Value™: $123.39 vs. price of $97.96 (20.6% below fair value)
Industry Position: 178.8% above the Healthcare Providers & Services median
No single metric tells the full story. See the ADUS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Addus HomeCare Corp is engaged in the provision of in-home care services. The Company has three reportable segments: Personal Care, Hospice, and Home Health. The Personal Care segment provides non-medical assistance with activities of daily living, mainly to the elderly, chronically ill, and disabled individuals. The Hospice segment provides physical, emotional, and spiritual care for terminally ill patients and their families. The Home Health segment provides medical services to individuals requiring care during illness or recovery. It generates the majority of its revenue from the Personal Care segment.
92GF Score
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