ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Big Yellow Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.04%.
As of today (2026-06-26), Big Yellow Group's WACC % is 9.57%. Big Yellow Group's ROIC % is 4.14% (calculated using TTM income statement data).
Big Yellow Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Big Yellow Group (CHIX:BYGl) 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, Big Yellow Group's WACC % is 9.57%. Big Yellow Group's ROIC % is 4.14% (calculated using TTM income statement data).
Big Yellow Group 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.
Big Yellow Group ROIC % Related Terms
Big Yellow Group ROIC % Historical Data
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The historical data trend for Big Yellow Group'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 REIT - Industrial subindustry, Big Yellow Group'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.
Big Yellow Group ROIC % vs REITs Industry
For the REITs industry and Real Estate sector, Big Yellow Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Big Yellow Group'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.
Big Yellow Group (CHIX:BYGL) has a ROIC % of 4.04% 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 Big Yellow Group and its competitors.
Is Big Yellow Group's ROIC % too high?
Big Yellow Group's current ROIC % is 4.04%. The REITs industry median ROIC % is 3.74. Big Yellow Group's value of 4.04% is 8% above this industry median. Overall, Big Yellow Group has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Big Yellow Group's ROIC % compare to PLD and PSA?
Big Yellow Group's ROIC % of 4.04% can be compared against companies in the REITs industry. The industry median ROIC % is 3.74. Big Yellow Group's value of 4.04% is 8% 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 REITs company?
The median ROIC % among REITs companies is 3.74, based on 749 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. Big Yellow Group's current ROIC % of 4.04% is 8% 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 Big Yellow Group and its competitors. For the REITs industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Big Yellow Group's current ROIC % is 4.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Big Yellow Group stock overvalued right now?
Based on GuruFocus' analysis, Big Yellow Group (CHIX:BYGL) is currently considered Modestly Undervalued. The stock's GF Value™ is £10.56, compared to a current price of £9.19 — trading 13% below its estimated fair value. The current ROIC % is 4.04% and 8% above the REITs industry median of 3.74. Big Yellow Group's overall GF Score™ is 72/100 with 6 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 Big Yellow Group (CHIX:BYGL), the current ROIC % is 4.04% 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 Big Yellow Group (CHIX:BYGL) Overvalued in 2026?
Based on GuruFocus' analysis, Big Yellow Group stock appears to be undervalued.
The current stock price of £9.19 is trading 13% below its estimated GF Value™ of £10.56.
GuruFocus considers Big Yellow Group to be Modestly Undervalued.
Key valuation signals for CHIX:BYGL:
ROIC %: 4.04%
GF Value™: £10.56 vs. price of £9.19 (13% below fair value)
No single metric tells the full story. See the CHIX:BYGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Big Yellow Group PLC operates a portfolio of modern, purpose-built self-storage stores. The Group provides self storage solutions for domestic and business customers, including storage space, flexi offices, dedicated office space, delivery acceptance, forklifting, courier arrangement services, and the sale of boxes and packing materials. The Group operates Big Yellow stores and Armadillo stores across the United Kingdom, with a focus on London and the South East. The Group operates in one segment, the provision of self-storage and related services.
72GF Score
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