ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Digicel Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2015 was 0.00%.
As of today (2026-06-26), Digicel Group's WACC % is 0.00%. Digicel Group's ROIC % is 0.00% (calculated using TTM income statement data).
Digicel Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Digicel Group (NYSE:DCEL) 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, Digicel Group's WACC % is 0.00%. Digicel Group's ROIC % is 0.00% (calculated using TTM income statement data).
Digicel 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.
Digicel Group ROIC % Related Terms
Digicel Group ROIC % Historical Data
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The historical data trend for Digicel 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.
Digicel Group ROIC % Chart
Digicel Group Annual Data
Trend
Mar13
Mar14
Mar15
ROIC %
0.00
2.85
0.00
Digicel Group Semi-Annual Data
Mar13
Mar14
Mar15
ROIC %
0.00
2.85
0.00
DCEL vs DIRV, FULO, TOWTF: ROIC % Comparison
For the Telecom Services subindustry, Digicel 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.
Digicel Group ROIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Digicel Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Digicel Group's ROIC % falls into.
Note:
The Operating Income data used here is one times the annual (Mar. 2015) 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.
Digicel Group (DCEL) has a ROIC % of 0.00% as of Mar. 2015. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Digicel Group and its competitors.
Is Digicel Group's ROIC % too high?
Digicel Group's current ROIC % is 0.00%.
How does Digicel Group's ROIC % compare to DIRV and FULO?
Digicel Group's ROIC % of 0.00% can be compared against companies in the Telecommunication Services industry. The industry median ROIC % is 4.54. 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 Telecommunication Services company?
The median ROIC % among Telecommunication Services companies is 4.54, based on 366 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. 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 Digicel Group and its competitors. For the Telecommunication Services industry, the median ROIC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digicel Group's current ROIC % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digicel Group stock overvalued right now?
Digicel Group (DCEL) has a current ROIC % of 0.00%. The current ROIC % is 0.00%. 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 Digicel Group (DCEL), the current ROIC % is 0.00% as of Mar. 2015. 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.
Digicel Group Ltd was incorporated under the laws of Bermuda on February 5, 2007. The Company is a provider of communications services in the Caribbean and South Pacific regions. It provides a comprehensive range of mobile communications, business solutions, cable TV & broadband and other related products and services to retail, corporate (including small and medium-sized enterprises) and government customers. Its business is currently organized into nine reporting segments: Jamaica, Trinidad and Tobago, French West Indies, Haiti, El Salvador, Eastern Caribbean markets consisting of its operations in St. Lucia, Grenada and St. Vincent and the Grenadines, Guyana, Papua New Guinea and Other locations, consisting of its operations in all of its other markets. It has customer reach through 1,034 retail locations (including 667 exclusive stores) and a dealer and distributor network with approximately 183,000 recharge locations. It offers its services on both a prepaid and post-paid basis and market to retail and business customers. It caters to its retail customers through Digicel's dealer channel and to its corporate clients via a business channel. Its distribution channel is comprised of the four distinct categories: Vendor Stores, Third-Party Dealers, Prepaid Card Outlets, and Diaspora. The Company's Mobile and Cable TV & Broadband operations are subject to regulation in each of the markets in which it operates.
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