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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 %. Defrail Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 19.73%.
As of today (2026-08-09), Defrail Technologies's WACC % is 11.67%. Defrail Technologies's ROIC % is 17.77% (calculated using TTM income statement data).
Defrail Technologies generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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, Defrail Technologies's WACC % is 11.67%. Defrail Technologies's ROIC % is 17.77% (calculated using TTM income statement data).
Defrail Technologies generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Defrail Technologies ROIC % Chart
Defrail Technologies Annual Data
Trend
Mar24
Mar25
Mar26
ROIC %
21.69
32.95
16.93
Defrail Technologies Semi-Annual Data
Mar24
Mar25
Sep25
Mar26
ROIC %
0.00
42.11
16.10
19.73
BOM:544677 vs ORLY, AZO: ROIC % Comparison
For the Auto Parts subindustry, Defrail Technologies'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.
Defrail Technologies ROIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Defrail Technologies's ROIC % distribution charts can be found below:
* The bar in red indicates where Defrail Technologies's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Defrail Technologies (BOM:544677) has a ROIC % of 19.73% 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 Defrail Technologies and its competitors.
Is Defrail Technologies' ROIC % too high?
Defrail Technologies' current ROIC % is 19.73%. The Vehicles & Parts industry median ROIC % is 5.02. Defrail Technologies' value of 19.73% is 293% above this industry median. Overall, Defrail Technologies has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Defrail Technologies' ROIC % compare to ORLY and AZO?
Defrail Technologies' ROIC % of 19.73% can be compared against companies in the Vehicles & Parts industry. The industry median ROIC % is 5.02. Defrail Technologies' value of 19.73% is 293% 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 Vehicles & Parts company?
The median ROIC % among Vehicles & Parts companies is 5.02, based on 1,306 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. Defrail Technologies's current ROIC % of 19.73% is 293% 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 Defrail Technologies and its competitors. For the Vehicles & Parts industry, the median ROIC % is 5.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Defrail Technologies's current ROIC % is 19.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Defrail Technologies stock overvalued right now?
Defrail Technologies (BOM:544677) has a current ROIC % of 19.73%. The current ROIC % is 19.73% and 293% above the Vehicles & Parts industry median of 5.02. Defrail Technologies' overall GF Score™ is 18/100 with 2 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 Defrail Technologies (BOM:544677), the current ROIC % is 19.73% 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.
Defrail Technologies Ltd is engaged in the business of manufacturing rubber parts & components. Its products serve different industries including Automotive, Railways and Defence. The company's product portfolio includes: i) Rubber Hose and Assemblies, ii) Rubber Profiles and Beadings, and iii) Rubber Moulded Parts. The majority of revenue is generated from the Rubber Hose and Assemblies product segment, which designs and supplies flexible hose systems for the controlled transfer of fluids, gases, and air across automotive, railway, defence, and industrial applications under varying pressure and temperature conditions. A substantial portion of its revenue is generated from the Automobile Industry.
18GF Score
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