ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Western Marine Shipyard's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2025 was 1.23%.
As of today (2026-07-09), Western Marine Shipyard's WACC % is 2.53%. Western Marine Shipyard's ROIC % is 1.23% (calculated using TTM income statement data).
Western Marine Shipyard earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Western Marine Shipyard (DHA:WMSHIPYARD) 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, Western Marine Shipyard's WACC % is 2.53%. Western Marine Shipyard's ROIC % is 1.23% (calculated using TTM income statement data).
Western Marine Shipyard 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.
* 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.
DHA:WMSHIPYARD vs SPCX, GE, RTX: ROIC % Comparison
For the Aerospace & Defense subindustry, Western Marine Shipyard'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.
Western Marine Shipyard ROIC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Western Marine Shipyard's ROIC % distribution charts can be found below:
* The bar in red indicates where Western Marine Shipyard's ROIC % falls into.
Note:
The Operating Income data used here is one times the annual (Jun. 2025) 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.
Western Marine Shipyard (DHA:WMSHIPYARD) has a ROIC % of 1.23% as of Jun. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Western Marine Shipyard and its competitors.
Is Western Marine Shipyard's ROIC % too high?
Western Marine Shipyard's current ROIC % is 1.23%. The Aerospace & Defense industry median ROIC % is 4.45. Western Marine Shipyard's value of 1.23% is 72.4% below this industry median. Overall, Western Marine Shipyard has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Western Marine Shipyard's ROIC % compare to SPCX and GE?
Western Marine Shipyard's ROIC % of 1.23% can be compared against companies in the Aerospace & Defense industry. The industry median ROIC % is 4.45. Western Marine Shipyard's value of 1.23% is 72.4% 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 4.45, based on 351 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. Western Marine Shipyard's current ROIC % of 1.23% is 72.4% 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 Western Marine Shipyard and its competitors. For the Aerospace & Defense industry, the median ROIC % is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Western Marine Shipyard's current ROIC % is 1.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Marine Shipyard stock overvalued right now?
Based on GuruFocus' analysis, Western Marine Shipyard (DHA:WMSHIPYARD) is currently considered Modestly Undervalued. The stock's GF Value™ is BDT13.03, compared to a current price of BDT10.40 — trading 20.2% below its estimated fair value. The current ROIC % is 1.23% and 72.4% below the Aerospace & Defense industry median of 4.45. Western Marine Shipyard's overall GF Score™ is 76/100 with 8 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 Western Marine Shipyard (DHA:WMSHIPYARD), the current ROIC % is 1.23% as of Jun. 2025. 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 Western Marine Shipyard (DHA:WMSHIPYARD) Overvalued in 2026?
Based on GuruFocus' analysis, Western Marine Shipyard stock appears to be undervalued.
The current stock price of BDT10.40 is trading 20.2% below its estimated GF Value™ of BDT13.03.
GuruFocus considers Western Marine Shipyard to be Modestly Undervalued.
Key valuation signals for DHA:WMSHIPYARD:
ROIC %: 1.23%
GF Value™: BDT13.03 vs. price of BDT10.40 (20.2% below fair value)
Industry Position: 72.4% below the Aerospace & Defense median
No single metric tells the full story. See the DHA:WMSHIPYARD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Marine Shipyard Ltd is a public limited company engaged in shipbuilding and related marine engineering activities and operates as an export-oriented shipyard in Bangladesh. The Company specializes in the construction of various vessels, including multi-purpose cargo ships, inland container vessels, inland tankers, passenger ships, Ro-Ro ferries, port utility vessels, tugs, offshore petroleum vessels, fishing trawlers, barges, dredgers, and landing crafts. Its activities mainly comprise new shipbuilding for domestic use and for export markets, supported by in-house ship design facilities and shipyard operations. The Company operates in Bangladesh and has exported vessels to countries such as Germany, Norway, Ecuador, New Zealand, and Kenya, as well as serving domestic clients.
76GF Score
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