ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Spark New Zealand's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 4.47%.
As of today (2026-06-24), Spark New Zealand's WACC % is 6.72%. Spark New Zealand's ROIC % is 7.45% (calculated using TTM income statement data).
Spark New Zealand 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.
Spark New Zealand (ASX:SPK) 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, Spark New Zealand's WACC % is 6.72%. Spark New Zealand's ROIC % is 7.45% (calculated using TTM income statement data).
Spark New Zealand 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.
Spark New Zealand ROIC % Related Terms
Spark New Zealand ROIC % Historical Data
* Premium members only.
The historical data trend for Spark New Zealand'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 Telecom Services subindustry, Spark New Zealand'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.
Spark New Zealand ROIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Spark New Zealand's ROIC % distribution charts can be found below:
* The bar in red indicates where Spark New Zealand'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.
Spark New Zealand (ASX:SPK) has a ROIC % of 4.47% 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 Spark New Zealand and its competitors.
Is Spark New Zealand's ROIC % too high?
Spark New Zealand's current ROIC % is 4.47%. The Telecommunication Services industry median ROIC % is 4.54. Spark New Zealand's value of 4.47% is 1.5% below this industry median. Overall, Spark New Zealand has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Spark New Zealand's ROIC % compare to TMUS and VZ?
Spark New Zealand's ROIC % of 4.47% can be compared against companies in the Telecommunication Services industry. The industry median ROIC % is 4.54. Spark New Zealand's value of 4.47% is 1.5% 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 Telecommunication Services company?
The median ROIC % among Telecommunication Services companies is 4.54, based on 366 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. Spark New Zealand's current ROIC % of 4.47% is 1.5% 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 Spark New Zealand and its competitors. For the Telecommunication Services industry, the median ROIC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spark New Zealand's current ROIC % is 4.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spark New Zealand stock overvalued right now?
Based on GuruFocus' analysis, Spark New Zealand (ASX:SPK) is currently considered Significantly Undervalued. The stock's GF Value™ is A$2.70, compared to a current price of A$1.45 — trading 46.3% below its estimated fair value. The current ROIC % is 4.47% and 1.5% below the Telecommunication Services industry median of 4.54. Spark New Zealand's overall GF Score™ is 67/100 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 Spark New Zealand (ASX:SPK), the current ROIC % is 4.47% 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 Spark New Zealand (ASX:SPK) Overvalued in 2026?
Based on GuruFocus' analysis, Spark New Zealand stock appears to be undervalued.
The current stock price of A$1.45 is trading 46.3% below its estimated GF Value™ of A$2.70.
GuruFocus considers Spark New Zealand to be Significantly Undervalued.
Key valuation signals for ASX:SPK:
ROIC %: 4.47%
GF Value™: A$2.70 vs. price of A$1.45 (46.3% below fair value)
Industry Position: 1.5% below the Telecommunication Services median
No single metric tells the full story. See the ASX:SPK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spark is one of only three integrated telecommunications companies in New Zealand. It is the leading mobile network operator with low- to mid-40% subscriber and revenue share, and the dominant provider of fixed-line broadband services with a mid-30% subscriber share. It has a big position in the New Zealand corporate and wholesale telecommunications services provision space. Spark supplements its core telecommunications operations and related infrastructure with IT products and services across cloud, managed data and networks, procurement, data centers, and Internet of Things. Its operations are all based in New Zealand, except for its 41% interest in Southern Cross Submarine Cables, which has zero book value and to which Spark has no funding obligations.
67GF Score
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