ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Nido Education's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 5.15%.
As of today (2026-06-29), Nido Education's WACC % is 3.55%. Nido Education's ROIC % is 5.00% (calculated using TTM income statement data).
Nido Education 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.
Nido Education (ASX:NDO) 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, Nido Education's WACC % is 3.55%. Nido Education's ROIC % is 5.00% (calculated using TTM income statement data).
Nido Education 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.
Nido Education ROIC % Related Terms
Nido Education ROIC % Historical Data
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The historical data trend for Nido Education'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 Education & Training Services subindustry, Nido Education'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.
Nido Education ROIC % vs Education Industry
For the Education industry and Consumer Defensive sector, Nido Education's ROIC % distribution charts can be found below:
* The bar in red indicates where Nido Education'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.
Nido Education (ASX:NDO) has a ROIC % of 5.15% 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 Nido Education and its competitors.
Is Nido Education's ROIC % too high?
Nido Education's current ROIC % is 5.15%. The Education industry median ROIC % is 4.97. Nido Education's value of 5.15% is 3.6% above this industry median. Overall, Nido Education has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Nido Education's ROIC % compare to EDU and TAL?
Nido Education's ROIC % of 5.15% can be compared against companies in the Education industry. The industry median ROIC % is 4.97. Nido Education's value of 5.15% is 3.6% 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 Education company?
The median ROIC % among Education companies is 4.97, based on 258 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. Nido Education's current ROIC % of 5.15% is 3.6% 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 Nido Education and its competitors. For the Education industry, the median ROIC % is 4.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nido Education's current ROIC % is 5.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nido Education stock overvalued right now?
Nido Education (ASX:NDO) has a current ROIC % of 5.15%. The current ROIC % is 5.15% and 3.6% above the Education industry median of 4.97. Nido Education's overall GF Score™ is 15/100 with 8 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 Nido Education (ASX:NDO), the current ROIC % is 5.15% 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.
Nido Education Ltd is a national owner, operator and manager of long-day early childhood education and care services. It offers exceptional education and care for children, from six weeks, through to school age, in a safe, comfortable, nurturing and peaceful environment. The Group operates in one segment being child care services.
15GF Score
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