ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Viva Energy Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 2.83%.
As of today (2026-06-27), Viva Energy Group's WACC % is 3.20%. Viva Energy Group's ROIC % is 1.99% (calculated using TTM income statement data).
Viva Energy Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Viva Energy Group (ASX:VEA) 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, Viva Energy Group's WACC % is 3.20%. Viva Energy Group's ROIC % is 1.99% (calculated using TTM income statement data).
Viva Energy Group 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.
Viva Energy Group ROIC % Related Terms
Viva Energy Group ROIC % Historical Data
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The historical data trend for Viva Energy Group'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 Oil & Gas Refining & Marketing subindustry, Viva Energy Group'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.
Viva Energy Group ROIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Viva Energy Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Viva Energy Group'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.
Viva Energy Group (ASX:VEA) has a ROIC % of 2.83% 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 Viva Energy Group and its competitors.
Is Viva Energy Group's ROIC % too high?
Viva Energy Group's current ROIC % is 2.83%. The Oil & Gas industry median ROIC % is 3.63. Viva Energy Group's value of 2.83% is 22% below this industry median. Overall, Viva Energy Group has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Viva Energy Group's ROIC % compare to VLO and MPC?
Viva Energy Group's ROIC % of 2.83% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.63. Viva Energy Group's value of 2.83% is 22% 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 an Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.63, based on 997 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. Viva Energy Group's current ROIC % of 2.83% is 22% 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 Viva Energy Group and its competitors. For the Oil & Gas industry, the median ROIC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Viva Energy Group's current ROIC % is 2.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Viva Energy Group stock overvalued right now?
Based on GuruFocus' analysis, Viva Energy Group (ASX:VEA) is currently considered Significantly Undervalued. The stock's GF Value™ is A$3.23, compared to a current price of A$2.02 — trading 37.5% below its estimated fair value. The current ROIC % is 2.83% and 22% below the Oil & Gas industry median of 3.63. Viva Energy Group's overall GF Score™ is 69/100 with 7 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 Viva Energy Group (ASX:VEA), the current ROIC % is 2.83% 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 Viva Energy Group (ASX:VEA) Overvalued in 2026?
Based on GuruFocus' analysis, Viva Energy Group stock appears to be undervalued.
The current stock price of A$2.02 is trading 37.5% below its estimated GF Value™ of A$3.23.
GuruFocus considers Viva Energy Group to be Significantly Undervalued.
Key valuation signals for ASX:VEA:
ROIC %: 2.83%
GF Value™: A$3.23 vs. price of A$2.02 (37.5% below fair value)
No single metric tells the full story. See the ASX:VEA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Viva is Australia's second-largest vertically integrated refined transport fuel supplier. We rate Viva as the second-most-significant pipeline owner, and at approximately 1,155 locations, Viva supplies the third-largest number of retail sites in Australia behind Ampol at approximately 1,985 and BP at 1,400.Vitol bought Shell's Australian downstream operations in 2014, and renamed them Viva Energy. Viva subsequently bought Shell's Australian aviation operations and a 50% investment in Liberty Oil. In 2016, Viva sold (and leased back) a portfolio of its retail sites to Viva Energy REIT and listed Viva Energy REIT on the ASX. It has since sold its entire REIT stake for AUD 734 million.Viva acquired OTR Group in 2014 for AUD 1.2 billion bringing over 200 South Australian stores.
69GF Score
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