ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Brookdale Senior Living's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.60%.
As of today (2026-06-27), Brookdale Senior Living's WACC % is 5.67%. Brookdale Senior Living's ROIC % is 1.87% (calculated using TTM income statement data).
Brookdale Senior Living earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Brookdale Senior Living (NYSE:BKD) 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, Brookdale Senior Living's WACC % is 5.67%. Brookdale Senior Living's ROIC % is 1.87% (calculated using TTM income statement data).
Brookdale Senior Living 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.
* 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 Medical Care Facilities subindustry, Brookdale Senior Living'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.
Brookdale Senior Living ROIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Brookdale Senior Living's ROIC % distribution charts can be found below:
* The bar in red indicates where Brookdale Senior Living's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) 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.
Brookdale Senior Living (BKD) has a ROIC % of 3.60% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Brookdale Senior Living and its competitors.
Is Brookdale Senior Living's ROIC % too high?
Brookdale Senior Living's current ROIC % is 3.60%. The Healthcare Providers & Services industry median ROIC % is 3.06. Brookdale Senior Living's value of 3.60% is 17.6% above this industry median. Overall, Brookdale Senior Living has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Brookdale Senior Living's ROIC % compare to CON and LFST?
Brookdale Senior Living's ROIC % of 3.60% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.06. Brookdale Senior Living's value of 3.60% is 17.6% 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 Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.06, based on 671 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. Brookdale Senior Living's current ROIC % of 3.60% is 17.6% 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 Brookdale Senior Living and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brookdale Senior Living's current ROIC % is 3.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brookdale Senior Living stock overvalued right now?
Based on GuruFocus' analysis, Brookdale Senior Living (BKD) is currently considered Significantly Overvalued. The stock's GF Value™ is $6.32, compared to a current price of $15.71 — trading 148.6% above its estimated fair value. The current ROIC % is 3.60% and 17.6% above the Healthcare Providers & Services industry median of 3.06. Brookdale Senior Living's overall GF Score™ is 43/100 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 Brookdale Senior Living (BKD), the current ROIC % is 3.60% as of Mar. 2026. 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 Brookdale Senior Living (BKD) Overvalued in 2026?
Based on GuruFocus' analysis, Brookdale Senior Living stock appears to be overvalued.
The current stock price of $15.71 is trading 148.6% above its estimated GF Value™ of $6.32.
GuruFocus considers Brookdale Senior Living to be Significantly Overvalued.
Key valuation signals for BKD:
ROIC %: 3.60%
GF Value™: $6.32 vs. price of $15.71 (148.6% above fair value)
Industry Position: 17.6% above the Healthcare Providers & Services median
No single metric tells the full story. See the BKD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Brookdale Senior Living Inc operates senior living communities throughout the United States. The company has three reportable segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRs). The majority of the revenue is generated from the Assisted Living and Memory Care segment, which offers housing and assistance with activities of daily living to its customers. The company generates revenue in the form of Resident Fees, which it receives in exchange for the services provided, and in the form of management fees from certain communities under contract in exchange for the management services provided.
43GF Score
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