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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 %. Tkms Ag KGaA's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 1.88%.
As of today (2026-09-06), Tkms Ag KGaA's WACC % is 9.13%. Tkms Ag KGaA's ROIC % is 0.96% (calculated using TTM income statement data).
Tkms Ag KGaA 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, Tkms Ag KGaA's WACC % is 9.13%. Tkms Ag KGaA's ROIC % is 0.96% (calculated using TTM income statement data).
Tkms Ag KGaA 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.
Tkms Ag KGaA ROIC % Related Terms
Tkms Ag KGaA ROIC % Historical Data
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The historical data trend for Tkms Ag KGaA'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 Aerospace & Defense subindustry, Tkms Ag KGaA'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.
Tkms Ag KGaA ROIC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Tkms Ag KGaA's ROIC % distribution charts can be found below:
* The bar in red indicates where Tkms Ag KGaA's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 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.
Tkms Ag KGaA (CHIX:TKMSD) has a ROIC % of 1.88% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Tkms Ag KGaA and its competitors.
Is Tkms Ag KGaA's ROIC % too high?
Tkms Ag KGaA's current ROIC % is 1.88%. The Aerospace & Defense industry median ROIC % is 3.80. Tkms Ag KGaA's value of 1.88% is 50.5% below this industry median. Overall, Tkms Ag KGaA has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does Tkms Ag KGaA's ROIC % compare to SPCX and GE?
Tkms Ag KGaA's ROIC % of 1.88% can be compared against companies in the Aerospace & Defense industry. The industry median ROIC % is 3.80. Tkms Ag KGaA's value of 1.88% is 50.5% below 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 an Aerospace & Defense company?
The median ROIC % among Aerospace & Defense companies is 3.80, based on 359 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. Tkms Ag KGaA's current ROIC % of 1.88% is 50.5% below 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 Tkms Ag KGaA and its competitors. For the Aerospace & Defense industry, the median ROIC % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tkms Ag KGaA's current ROIC % is 1.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tkms Ag KGaA stock overvalued right now?
Tkms Ag KGaA (CHIX:TKMSD) has a current ROIC % of 1.88%. The current ROIC % is 1.88% and 50.5% below the Aerospace & Defense industry median of 3.80. Tkms Ag KGaA's overall GF Score™ is 14/100 with 3 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 Tkms Ag KGaA (CHIX:TKMSD), the current ROIC % is 1.88% as of Jun. 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.
Tkms Ag & Co KGaA is an international maritime industrial group. The company is a system provider in submarine and surface vessel construction, in the field of maritime electronics and security technology and in solutions in the non-military sector. Its portfolio includes the development and manufacture of conventional submarines, specialized submarines such as frigates and corvettes and specialized civilian vessels. The business activities of TKMS comprise the three operating units (i) Submarines, (ii) Surface Vessels and (iii) Atlas Electronics. The majority of the company's revenue is derived from the Submarines segment, which comprises the construction (including design, procurement, and manufacturing) of non-nuclear submarines for use in coastal and offshore areas.
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