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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 %. Peter Warren Automotive Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 3.55%.
As of today (2026-07-15), Peter Warren Automotive Holdings's WACC % is 4.44%. Peter Warren Automotive Holdings's ROIC % is 3.70% (calculated using TTM income statement data).
Peter Warren Automotive Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Peter Warren Automotive Holdings (ASX:PWR) 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, Peter Warren Automotive Holdings's WACC % is 4.44%. Peter Warren Automotive Holdings's ROIC % is 3.70% (calculated using TTM income statement data).
Peter Warren Automotive Holdings 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.
Peter Warren Automotive Holdings ROIC % Related Terms
Peter Warren Automotive Holdings 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 Auto & Truck Dealerships subindustry, Peter Warren Automotive Holdings'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.
Peter Warren Automotive Holdings ROIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Peter Warren Automotive Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Peter Warren Automotive Holdings'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.
Peter Warren Automotive Holdings (ASX:PWR) has a ROIC % of 3.55% 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 Peter Warren Automotive Holdings and its competitors.
Is Peter Warren Automotive Holdings' ROIC % too high?
Peter Warren Automotive Holdings' current ROIC % is 3.55%. The Vehicles & Parts industry median ROIC % is 5.05. Peter Warren Automotive Holdings' value of 3.55% is 29.7% below this industry median. Overall, Peter Warren Automotive Holdings has a GF Score™ of 47/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Peter Warren Automotive Holdings' ROIC % compare to CVNA and PAG?
Peter Warren Automotive Holdings' ROIC % of 3.55% can be compared against companies in the Vehicles & Parts industry. The industry median ROIC % is 5.05. Peter Warren Automotive Holdings' value of 3.55% is 29.7% below 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 Vehicles & Parts company?
The median ROIC % among Vehicles & Parts companies is 5.05, based on 1,311 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. Peter Warren Automotive Holdings's current ROIC % of 3.55% is 29.7% below 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 Peter Warren Automotive Holdings and its competitors. For the Vehicles & Parts industry, the median ROIC % is 5.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Peter Warren Automotive Holdings's current ROIC % is 3.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Peter Warren Automotive Holdings stock overvalued right now?
Based on GuruFocus' analysis, Peter Warren Automotive Holdings (ASX:PWR) is currently considered Significantly Undervalued. The stock's GF Value™ is A$1.96, compared to a current price of A$0.93 — trading 52.6% below its estimated fair value. The current ROIC % is 3.55% and 29.7% below the Vehicles & Parts industry median of 5.05. Peter Warren Automotive Holdings' overall GF Score™ is 47/100 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 Peter Warren Automotive Holdings (ASX:PWR), the current ROIC % is 3.55% 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 Peter Warren Automotive Holdings (ASX:PWR) Overvalued in 2026?
Based on GuruFocus' analysis, Peter Warren Automotive Holdings stock appears to be undervalued.
The current stock price of A$0.93 is trading 52.6% below its estimated GF Value™ of A$1.96.
GuruFocus considers Peter Warren Automotive Holdings to be Significantly Undervalued.
Key valuation signals for ASX:PWR:
ROIC %: 3.55%
GF Value™: A$1.96 vs. price of A$0.93 (52.6% below fair value)
Industry Position: 29.7% below the Vehicles & Parts median
No single metric tells the full story. See the ASX:PWR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Peter Warren Automotive Holdings Business Description
Peter Warren Automotive Holdings Ltd is a dealership group operating in Australia. The company operates an integrated new and used car retailing business providing the full range of sales and support, including parts, servicing, finance, insurance, and aftermarket products to an extensive list of long-term customers, many of whom have purchased multiple vehicles over a lifetime. The group has two operating segments, vehicle retailing and property. The firm generates the majority of its revenue from the Vehicle Retailing segment, which offers a diversified range of automotive products and services, including new vehicles, used vehicles, vehicle maintenance and repair services, vehicle parts, extended service contracts, vehicle protection products, and other aftermarket products.
47GF Score
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