ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Locaweb Servicos de Internet's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.25%.
As of today (2026-07-13), Locaweb Servicos de Internet's WACC % is 13.56%. Locaweb Servicos de Internet's ROIC % is -6.75% (calculated using TTM income statement data).
Locaweb Servicos de Internet earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Locaweb Servicos de Internet (BSP:LWSA3) 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, Locaweb Servicos de Internet's WACC % is 13.56%. Locaweb Servicos de Internet's ROIC % is -6.75% (calculated using TTM income statement data).
Locaweb Servicos de Internet 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.
Locaweb Servicos de Internet ROIC % Related Terms
Locaweb Servicos de Internet ROIC % Historical Data
* 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 Software - Infrastructure subindustry, Locaweb Servicos de Internet'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.
Locaweb Servicos de Internet ROIC % vs Software Industry
For the Software industry and Technology sector, Locaweb Servicos de Internet's ROIC % distribution charts can be found below:
* The bar in red indicates where Locaweb Servicos de Internet'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.
Locaweb Servicos de Internet (BSP:LWSA3) has a ROIC % of 4.25% 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 Locaweb Servicos de Internet and its competitors.
Is Locaweb Servicos de Internet's ROIC % too high?
Locaweb Servicos de Internet's current ROIC % is 4.25%. The Software industry median ROIC % is 3.09. Locaweb Servicos de Internet's value of 4.25% is 37.5% above this industry median. Overall, Locaweb Servicos de Internet has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Locaweb Servicos de Internet's ROIC % compare to MSFT and ORCL?
Locaweb Servicos de Internet's ROIC % of 4.25% can be compared against companies in the Software industry. The industry median ROIC % is 3.09. Locaweb Servicos de Internet's value of 4.25% is 37.5% 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 Software company?
The median ROIC % among Software companies is 3.09, based on 2,829 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. Locaweb Servicos de Internet's current ROIC % of 4.25% is 37.5% 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 Locaweb Servicos de Internet and its competitors. For the Software industry, the median ROIC % is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Locaweb Servicos de Internet's current ROIC % is 4.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Locaweb Servicos de Internet stock overvalued right now?
Based on GuruFocus' analysis, Locaweb Servicos de Internet (BSP:LWSA3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$5.03, compared to a current price of R$4.04 — trading 19.7% below its estimated fair value. The current ROIC % is 4.25% and 37.5% above the Software industry median of 3.09. Locaweb Servicos de Internet's overall GF Score™ is 82/100 with 1 warning sign 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 Locaweb Servicos de Internet (BSP:LWSA3), the current ROIC % is 4.25% 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 Locaweb Servicos de Internet (BSP:LWSA3) Overvalued in 2026?
Based on GuruFocus' analysis, Locaweb Servicos de Internet stock appears to be undervalued.
The current stock price of R$4.04 is trading 19.7% below its estimated GF Value™ of R$5.03.
GuruFocus considers Locaweb Servicos de Internet to be Modestly Undervalued.
Key valuation signals for BSP:LWSA3:
ROIC %: 4.25%
GF Value™: R$5.03 vs. price of R$4.04 (19.7% below fair value)
Industry Position: 37.5% above the Software median
No single metric tells the full story. See the BSP:LWSA3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Locaweb Servicos de Internet SA is a Brazil-based software company. It offers digital marketing, cloud, and accommodation services such as website hosting, WordPress hosting, domain registration, and email services. The operations of the Company and its subsidiaries are divided into two operating segments: Be Online and SaaS, and Commerce. The Be Online and SaaS segment includes hosting and cloud services, as well as those called SaaS (email, marketing intelligence software, and site builder). The Commerce segment includes e-commerce solutions, platforms, marketplace integration, and sub-acquiring business services. It generates the majority of its revenue from the Commerce segment.
82GF Score
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