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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Advance Residence Investment's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2026 was 3.98%.
As of today (2026-07-25), Advance Residence Investment's WACC % is 2.16%. Advance Residence Investment's ROIC % is 4.10% (calculated using TTM income statement data).
Advance Residence Investment 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.
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, Advance Residence Investment's WACC % is 2.16%. Advance Residence Investment's ROIC % is 4.10% (calculated using TTM income statement data).
Advance Residence Investment 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.
Advance Residence Investment ROIC % Related Terms
Advance Residence Investment 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.
For the REIT - Residential subindustry, Advance Residence Investment'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.
Advance Residence Investment ROIC % vs REITs Industry
For the REITs industry and Real Estate sector, Advance Residence Investment's ROIC % distribution charts can be found below:
* The bar in red indicates where Advance Residence Investment's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Jan. 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.
Advance Residence Investment (ADZZF) has a ROIC % of 3.98% as of Jan. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Advance Residence Investment and its competitors.
Is Advance Residence Investment's ROIC % too high?
Advance Residence Investment's current ROIC % is 3.98%. The REITs industry median ROIC % is 3.74. Advance Residence Investment's value of 3.98% is 6.4% above this industry median. Overall, Advance Residence Investment has a GF Score™ of 58/100, reflecting its overall financial health beyond just this single metric.
How does Advance Residence Investment's ROIC % compare to AVB and EQR?
Advance Residence Investment's ROIC % of 3.98% can be compared against companies in the REITs industry. The industry median ROIC % is 3.74. Advance Residence Investment's value of 3.98% is 6.4% 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 REITs company?
The median ROIC % among REITs companies is 3.74, based on 740 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. Advance Residence Investment's current ROIC % of 3.98% is 6.4% 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 Advance Residence Investment and its competitors. For the REITs industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advance Residence Investment's current ROIC % is 3.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advance Residence Investment stock overvalued right now?
Advance Residence Investment (ADZZF) has a current ROIC % of 3.98%. The stock's GF Value™ is $874.68, compared to a current price of $1,050.00 — trading 20% above its estimated fair value. The current ROIC % is 3.98% and 6.4% above the REITs industry median of 3.74. Advance Residence Investment's overall GF Score™ is 58/100 with 5 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 Advance Residence Investment (ADZZF), the current ROIC % is 3.98% as of Jan. 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 Advance Residence Investment (ADZZF) Overvalued in 2026?
Based on GuruFocus' analysis, Advance Residence Investment stock appears to be overvalued.
The current stock price of $1,050.00 is trading 20% above its estimated GF Value™ of $874.68.
Key valuation signals for ADZZF:
ROIC %: 3.98%
GF Value™: $874.68 vs. price of $1,050.00 (20% above fair value)
No single metric tells the full story. See the ADZZF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advance Residence Investment Corp is a real estate investment trust that engages in the property leasing business. It mainly invests in rental housing in central Tokyo, the greater Tokyo area, and other nearby cities. Its portfolio includes properties such as RESIDIA TOWER Meguro-Fudomae, Pacific Royal Court Minato Mirai Ocean Tower, Park Tower Shibaura Bayward Urban Wing, RESIDIA Daikanyama-Sarugakucho, and several other RESIDIA-branded buildings.
58GF Score
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