ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Archer Materials's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -258.24%.
As of today (2026-06-25), Archer Materials's WACC % is 0.88%. Archer Materials's ROIC % is -98.74% (calculated using TTM income statement data).
Archer Materials earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Archer Materials (ASX:AXE) 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, Archer Materials's WACC % is 0.88%. Archer Materials's ROIC % is -98.74% (calculated using TTM income statement data).
Archer Materials 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.
Archer Materials ROIC % Related Terms
Archer Materials ROIC % Historical Data
* Premium members only.
The historical data trend for Archer Materials'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 Semiconductors subindustry, Archer Materials'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.
Archer Materials ROIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Archer Materials's ROIC % distribution charts can be found below:
* The bar in red indicates where Archer Materials's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-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.
Archer Materials (ASX:AXE) has a ROIC % of -258.24% 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 Archer Materials and its competitors.
Is Archer Materials' ROIC % too high?
Archer Materials' current ROIC % is -258.24%. Overall, Archer Materials has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does Archer Materials' ROIC % compare to NVDA and AVGO?
Archer Materials' ROIC % of -258.24% can be compared against companies in the Semiconductors industry. The industry median ROIC % is 3.74. 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 Semiconductors company?
The median ROIC % among Semiconductors companies is 3.74, based on 1,012 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. 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 Archer Materials and its competitors. For the Semiconductors industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Archer Materials's current ROIC % is -258.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Archer Materials stock overvalued right now?
Archer Materials (ASX:AXE) has a current ROIC % of -258.24%. The current ROIC % is -258.24%. Archer Materials' overall GF Score™ is 33/100 with 1 warning sign 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 Archer Materials (ASX:AXE), the current ROIC % is -258.24% 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.
Archer Materials Ltd is a technology company with a focus on developing deep tech in the semiconductor industry. The group is developing and working towards commercialising semiconductor devices and sensors relevant to quantum computing, TMR sensors and lab-on-a-chip medical diagnostics. It engages in technology research and development of the carbon nano onion quantum material (12CQ Project), TMR sensor project and graphene-based lab-on-a-chip biosensing chip; utilising semiconductor development infrastructure and facilities, R&D, people, and IP, to support technology research and development.
33GF Score
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