ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Clean Teq Water's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 7.65%.
As of today (2026-07-05), Clean Teq Water's WACC % is 8.13%. Clean Teq Water's ROIC % is -1.78% (calculated using TTM income statement data).
Clean Teq Water earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Clean Teq Water (ASX:CNQ) 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, Clean Teq Water's WACC % is 8.13%. Clean Teq Water's ROIC % is -1.78% (calculated using TTM income statement data).
Clean Teq Water 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.
Clean Teq Water ROIC % Related Terms
Clean Teq Water ROIC % Historical Data
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The historical data trend for Clean Teq Water'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 Utilities - Regulated Water subindustry, Clean Teq Water'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.
Clean Teq Water ROIC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Clean Teq Water's ROIC % distribution charts can be found below:
* The bar in red indicates where Clean Teq Water'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.
Clean Teq Water (ASX:CNQ) has a ROIC % of 7.65% 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 Clean Teq Water and its competitors.
Is Clean Teq Water's ROIC % too high?
Clean Teq Water's current ROIC % is 7.65%. The Utilities - Regulated industry median ROIC % is 4.16. Clean Teq Water's value of 7.65% is 83.9% above this industry median. Overall, Clean Teq Water has a GF Score™ of 27/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Clean Teq Water's ROIC % compare to AWK and WTRG?
Clean Teq Water's ROIC % of 7.65% can be compared against companies in the Utilities - Regulated industry. The industry median ROIC % is 4.16. Clean Teq Water's value of 7.65% is 83.9% 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 Utilities - Regulated company?
The median ROIC % among Utilities - Regulated companies is 4.16, based on 502 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. Clean Teq Water's current ROIC % of 7.65% is 83.9% 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 Clean Teq Water and its competitors. For the Utilities - Regulated industry, the median ROIC % is 4.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Clean Teq Water's current ROIC % is 7.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Clean Teq Water stock overvalued right now?
Based on GuruFocus' analysis, Clean Teq Water (ASX:CNQ) is currently considered Modestly Overvalued. The stock's GF Value™ is A$0.38, compared to a current price of A$0.46 — trading 19.7% above its estimated fair value. The current ROIC % is 7.65% and 83.9% above the Utilities - Regulated industry median of 4.16. Clean Teq Water's overall GF Score™ is 27/100 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 Clean Teq Water (ASX:CNQ), the current ROIC % is 7.65% 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 Clean Teq Water (ASX:CNQ) Overvalued in 2026?
Based on GuruFocus' analysis, Clean Teq Water stock appears to be overvalued.
The current stock price of A$0.46 is trading 19.7% above its estimated GF Value™ of A$0.38.
GuruFocus considers Clean Teq Water to be Modestly Overvalued.
Key valuation signals for ASX:CNQ:
ROIC %: 7.65%
GF Value™: A$0.38 vs. price of A$0.46 (19.7% above fair value)
Industry Position: 83.9% above the Utilities - Regulated median
No single metric tells the full story. See the ASX:CNQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Clean Teq Water Ltd provides inventive metals recovery and water treatment solutions for governments and companies. Its technology solutions include desalination, nutrient removal, zero liquid discharge and hardness removal. It focuses on sectors such as municipal wastewater, surface water, industrial wastewater and mining process water. The company has offices and laboratories in Melbourne, Perth, Beijing and Tianjin, and partner offices in Africa and Latin America.
27GF Score
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