ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sharjah Insurance Co PSC's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 18.63%.
As of today (2026-06-26), Sharjah Insurance Co PSC's WACC % is 10.44%. Sharjah Insurance Co PSC's ROIC % is 18.63% (calculated using TTM income statement data).
Sharjah Insurance Co PSC generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Sharjah Insurance Co PSC (ADX:SICO) 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, Sharjah Insurance Co PSC's WACC % is 10.44%. Sharjah Insurance Co PSC's ROIC % is 18.63% (calculated using TTM income statement data).
Sharjah Insurance Co PSC generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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 Insurance - Diversified subindustry, Sharjah Insurance Co PSC'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.
Sharjah Insurance Co PSC ROIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, Sharjah Insurance Co PSC's ROIC % distribution charts can be found below:
* The bar in red indicates where Sharjah Insurance Co PSC's ROIC % falls into.
Note:
The EBIT 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.
Sharjah Insurance Co PSC (ADX:SICO) has a ROIC % of 18.63% 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 Sharjah Insurance Co PSC and its competitors.
Is Sharjah Insurance Co PSC's ROIC % too high?
Sharjah Insurance Co PSC's current ROIC % is 18.63%. The Insurance industry median ROIC % is 3.36. Sharjah Insurance Co PSC's value of 18.63% is 454.5% above this industry median. Overall, Sharjah Insurance Co PSC has a GF Score™ of 32/100, reflecting its overall financial health beyond just this single metric.
How does Sharjah Insurance Co PSC's ROIC % compare to BRK.A and AIG?
Sharjah Insurance Co PSC's ROIC % of 18.63% can be compared against companies in the Insurance industry. The industry median ROIC % is 3.36. Sharjah Insurance Co PSC's value of 18.63% is 454.5% 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 Insurance company?
The median ROIC % among Insurance companies is 3.36, based on 368 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. Sharjah Insurance Co PSC's current ROIC % of 18.63% is 454.5% 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 Sharjah Insurance Co PSC and its competitors. For the Insurance industry, the median ROIC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sharjah Insurance Co PSC's current ROIC % is 18.63%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sharjah Insurance Co PSC stock overvalued right now?
Sharjah Insurance Co PSC (ADX:SICO) has a current ROIC % of 18.63%. The current ROIC % is 18.63% and 454.5% above the Insurance industry median of 3.36. Sharjah Insurance Co PSC's overall GF Score™ is 32/100 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 Sharjah Insurance Co PSC (ADX:SICO), the current ROIC % is 18.63% 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.
Sharjah Insurance Co PSC deals in general insurance, property, non-property insurance, and life insurance. Its personal insurance includes motor insurance, travel insurance, and home insurance; and its commercial insurance includes marine insurance, fire insurance, engineering insurance, general accident insurance, liability insurance, life insurance, and motor insurance. The company is organized into two segments: underwriting and investment. Underwriting segment comprises engineering and motor insurance, marine insurance, fire insurance, and other insurances. Investment segment includes investments inside and outside UAE, marketable equity securities, term deposit with banks and investment properties. The majority of the revenue is derived from the Underwriting segment.
32GF Score
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