ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. X2M Connect's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -54.45%.
As of today (2026-06-27), X2M Connect's WACC % is 13.97%. X2M Connect's ROIC % is -55.84% (calculated using TTM income statement data).
X2M Connect earns returns that do not match up to its cost of capital. It will destroy value as it grows.
X2M Connect (ASX:X2M) 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, X2M Connect's WACC % is 13.97%. X2M Connect's ROIC % is -55.84% (calculated using TTM income statement data).
X2M Connect 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.
X2M Connect ROIC % Related Terms
X2M Connect ROIC % Historical Data
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The historical data trend for X2M Connect'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 Scientific & Technical Instruments subindustry, X2M Connect'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.
X2M Connect ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, X2M Connect's ROIC % distribution charts can be found below:
* The bar in red indicates where X2M Connect'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.
X2M Connect (ASX:X2M) has a ROIC % of -54.45% 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 X2M Connect and its competitors.
Is X2M Connect's ROIC % too high?
X2M Connect's current ROIC % is -54.45%.
How does X2M Connect's ROIC % compare to COHR and KEYS?
X2M Connect's ROIC % of -54.45% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.12. 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 Hardware company?
The median ROIC % among Hardware companies is 4.12, based on 2,444 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. 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 X2M Connect and its competitors. For the Hardware industry, the median ROIC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. X2M Connect's current ROIC % is -54.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is X2M Connect stock overvalued right now?
Based on GuruFocus' analysis, X2M Connect (ASX:X2M) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.01, compared to a current price of A$0.00 — trading 55% below its estimated fair value. The current ROIC % is -54.45%. 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 X2M Connect (ASX:X2M), the current ROIC % is -54.45% 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.
X2M Connect Ltd is an Internet of Things (IoT) technology company that uses the internet to deliver productivity improvements, cost savings, and improved public safety to enterprise and government customers. Its focus is servicing the utility sector in the Asia-Pacific utility market through the provision of technology that connects devices over the internet, such as water meters and gas pressure sensors and which enables data exchange and control of these devices. The company's geographical segment includes South Korea, China, Taiwan, and other countries. It derives a majority of revenue from South Korea.
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