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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Zodiac Energy's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 14.11%.
As of today (2026-08-19), Zodiac Energy's WACC % is 12.98%. Zodiac Energy's ROIC % is 10.17% (calculated using TTM income statement data).
Zodiac Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Zodiac Energy's WACC % is 12.98%. Zodiac Energy's ROIC % is 10.17% (calculated using TTM income statement data).
Zodiac Energy 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.
Zodiac Energy ROIC % Related Terms
Zodiac Energy ROIC % Historical Data
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The historical data trend for Zodiac Energy'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 Solar subindustry, Zodiac Energy'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.
Zodiac Energy ROIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Zodiac Energy's ROIC % distribution charts can be found below:
* The bar in red indicates where Zodiac Energy'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.
Zodiac Energy (BOM:543416) has a ROIC % of 14.11% 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 Zodiac Energy and its competitors.
Is Zodiac Energy's ROIC % too high?
Zodiac Energy's current ROIC % is 14.11%. The Semiconductors industry median ROIC % is 4.11. Zodiac Energy's value of 14.11% is 243.3% above this industry median. Overall, Zodiac Energy has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zodiac Energy's ROIC % compare to FSLR and NXT?
Zodiac Energy's ROIC % of 14.11% can be compared against companies in the Semiconductors industry. The industry median ROIC % is 4.11. Zodiac Energy's value of 14.11% is 243.3% 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 Semiconductors company?
The median ROIC % among Semiconductors companies is 4.11, based on 1,015 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. Zodiac Energy's current ROIC % of 14.11% is 243.3% 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 Zodiac Energy and its competitors. For the Semiconductors industry, the median ROIC % is 4.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zodiac Energy's current ROIC % is 14.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zodiac Energy stock overvalued right now?
Based on GuruFocus' analysis, Zodiac Energy (BOM:543416) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹651.63, compared to a current price of ₹255.50 — trading 60.8% below its estimated fair value. The current ROIC % is 14.11% and 243.3% above the Semiconductors industry median of 4.11. Zodiac Energy's overall GF Score™ is 82/100 with 4 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 Zodiac Energy (BOM:543416), the current ROIC % is 14.11% 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 Zodiac Energy (BOM:543416) Overvalued in 2026?
Based on GuruFocus' analysis, Zodiac Energy stock appears to be undervalued.
The current stock price of ₹255.50 is trading 60.8% below its estimated GF Value™ of ₹651.63.
GuruFocus considers Zodiac Energy to be Significantly Undervalued.
Key valuation signals for BOM:543416:
ROIC %: 14.11%
GF Value™: ₹651.63 vs. price of ₹255.50 (60.8% below fair value)
Industry Position: 243.3% above the Semiconductors median
No single metric tells the full story. See the BOM:543416 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zodiac Energy Ltd operates as an energy solution provider in India. It is engaged in the design, supply, installation, testing, commissioning, operation, and maintenance of solar power equipment. The company's products and services offerings include grid-connected solar PV systems, rooftop solar PV systems, off-grid solar PV systems, solar pumping solutions, building integrated PV systems, etc., by utilising solar modules, inverters, controllers, and storage batteries. In addition, it is involved in operations and maintenance of ground mounted and rooftop solar assets. The company has recently forayed into the development of solar projects for the sale of electricity to distribution companies and corporate clients as an Independent Power Producer (IPP).
82GF Score
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