ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Smart Parking's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 10.77%.
As of today (2026-06-25), Smart Parking's WACC % is 11.29%. Smart Parking's ROIC % is 10.21% (calculated using TTM income statement data).
Smart Parking earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Smart Parking (ASX:SPZ) 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, Smart Parking's WACC % is 11.29%. Smart Parking's ROIC % is 10.21% (calculated using TTM income statement data).
Smart Parking 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.
Smart Parking ROIC % Related Terms
Smart Parking ROIC % Historical Data
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The historical data trend for Smart Parking'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 Infrastructure Operations subindustry, Smart Parking'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.
Smart Parking ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Smart Parking's ROIC % distribution charts can be found below:
* The bar in red indicates where Smart Parking'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.
Smart Parking (ASX:SPZ) has a ROIC % of 10.77% 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 Smart Parking and its competitors.
Is Smart Parking's ROIC % too high?
Smart Parking's current ROIC % is 10.77%. The Construction industry median ROIC % is 4.65. Smart Parking's value of 10.77% is 131.6% above this industry median. Overall, Smart Parking has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Smart Parking's ROIC % compare to competitors?
Smart Parking's ROIC % of 10.77% can be compared against companies in the Construction industry. The industry median ROIC % is 4.65. Smart Parking's value of 10.77% is 131.6% 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 a Construction company?
The median ROIC % among Construction companies is 4.65, based on 1,755 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. Smart Parking's current ROIC % of 10.77% is 131.6% 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 Smart Parking and its competitors. For the Construction industry, the median ROIC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smart Parking's current ROIC % is 10.77%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smart Parking stock overvalued right now?
Based on GuruFocus' analysis, Smart Parking (ASX:SPZ) is currently considered Modestly Undervalued. The stock's GF Value™ is A$1.12, compared to a current price of A$0.83 — trading 26.3% below its estimated fair value. The current ROIC % is 10.77% and 131.6% above the Construction industry median of 4.65. Smart Parking's overall GF Score™ is 90/100. 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 Smart Parking (ASX:SPZ), the current ROIC % is 10.77% 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 Smart Parking (ASX:SPZ) Overvalued in 2026?
Based on GuruFocus' analysis, Smart Parking stock appears to be undervalued.
The current stock price of A$0.83 is trading 26.3% below its estimated GF Value™ of A$1.12.
GuruFocus considers Smart Parking to be Modestly Undervalued.
Key valuation signals for ASX:SPZ:
ROIC %: 10.77%
GF Value™: A$1.12 vs. price of A$0.83 (26.3% below fair value)
Industry Position: 131.6% above the Construction median
No single metric tells the full story. See the ASX:SPZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smart Parking Ltd engages in the provision of design, development, and management of parking technology. It operates through three segments. The Technology segment consists of the sale of Smart City and IoT technology products and solutions predominantly to the parking market globally; the Parking Management segment, which is the key revenue driver, consists of the provision of car parking management services on behalf of third party car park owners and on sites leased by the company and managed on its own behalf in the UK; and Research and Development segment includes costs to research, develop and enhance software/hardware for both the Technology and Parking Management divisions. Geographically, it has presence in North America; UK and Europe; Asia, and Australia.
90GF Score
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