ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. BWP Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 4.45%.
As of today (2026-06-27), BWP Group's WACC % is 7.24%. BWP Group's ROIC % is 2.23% (calculated using TTM income statement data).
BWP Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
BWP Group (ASX:BWP) 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, BWP Group's WACC % is 7.24%. BWP Group's ROIC % is 2.23% (calculated using TTM income statement data).
BWP Group 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.
BWP Group ROIC % Related Terms
BWP Group ROIC % Historical Data
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The historical data trend for BWP Group'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 REIT - Industrial subindustry, BWP Group'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.
BWP Group ROIC % vs REITs Industry
For the REITs industry and Real Estate sector, BWP Group's ROIC % distribution charts can be found below:
* The bar in red indicates where BWP Group'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.
BWP Group (ASX:BWP) has a ROIC % of 4.45% 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 BWP Group and its competitors.
Is BWP Group's ROIC % too high?
BWP Group's current ROIC % is 4.45%. The REITs industry median ROIC % is 3.74. BWP Group's value of 4.45% is 19% above this industry median. Overall, BWP Group has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BWP Group's ROIC % compare to PLD and PSA?
BWP Group's ROIC % of 4.45% can be compared against companies in the REITs industry. The industry median ROIC % is 3.74. BWP Group's value of 4.45% is 19% 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 749 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. BWP Group's current ROIC % of 4.45% is 19% 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 BWP Group 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. BWP Group's current ROIC % is 4.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BWP Group stock overvalued right now?
Based on GuruFocus' analysis, BWP Group (ASX:BWP) is currently considered Fairly Valued. The stock's GF Value™ is A$3.94, compared to a current price of A$3.96 — trading 0.5% above its estimated fair value. The current ROIC % is 4.45% and 19% above the REITs industry median of 3.74. BWP Group's overall GF Score™ is 80/100 with 6 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 BWP Group (ASX:BWP), the current ROIC % is 4.45% 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.
Is BWP Group (ASX:BWP) Overvalued in 2026?
Based on GuruFocus' analysis, BWP Group stock appears to be overvalued.
The current stock price of A$3.96 is trading 0.5% above its estimated GF Value™ of A$3.94.
GuruFocus considers BWP Group to be Fairly Valued.
Key valuation signals for ASX:BWP:
ROIC %: 4.45%
GF Value™: A$3.94 vs. price of A$3.96 (0.5% above fair value)
No single metric tells the full story. See the ASX:BWP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BWP Group is an Australian REIT focused on owning warehouse or bulky goods retailing properties with relatively large sites and high visibility and access to arterial roads. The portfolio of properties it owns is diversified across most Australian states and is on long-term leases to Australia's dominant home improvement chain: Bunnings Group. Bunnings is a wholly owned subsidiary of Wesfarmers, a top-10 ASX-listed company by market capitalization. Wesfarmers owns 23% of BWP units.
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