ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Leonardo SpA's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.95%.
As of today (2026-06-25), Leonardo SpA's WACC % is 8.24%. Leonardo SpA's ROIC % is 18.64% (calculated using TTM income statement data).
Leonardo SpA generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Leonardo SpA (OTCPK:FINMY) 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, Leonardo SpA's WACC % is 8.24%. Leonardo SpA's ROIC % is 18.64% (calculated using TTM income statement data).
Leonardo SpA generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Leonardo SpA ROIC % Related Terms
Leonardo SpA ROIC % Historical Data
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The historical data trend for Leonardo SpA'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, Leonardo SpA'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.
Leonardo SpA ROIC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Leonardo SpA's ROIC % distribution charts can be found below:
* The bar in red indicates where Leonardo SpA'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.
Leonardo SpA (FINMY) has a ROIC % of 5.95% 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 Leonardo SpA and its competitors.
Is Leonardo SpA's ROIC % too high?
Leonardo SpA's current ROIC % is 5.95%. The Aerospace & Defense industry median ROIC % is 4.45. Leonardo SpA's value of 5.95% is 33.7% above this industry median. Overall, Leonardo SpA has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leonardo SpA's ROIC % compare to GE and RTX?
Leonardo SpA's ROIC % of 5.95% can be compared against companies in the Aerospace & Defense industry. The industry median ROIC % is 4.45. Leonardo SpA's value of 5.95% is 33.7% 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 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. Leonardo SpA's current ROIC % of 5.95% is 33.7% 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 Leonardo SpA 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. Leonardo SpA's current ROIC % is 5.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leonardo SpA stock overvalued right now?
Based on GuruFocus' analysis, Leonardo SpA (FINMY) is currently considered Significantly Overvalued. The stock's GF Value™ is $17.77, compared to a current price of $26.17 — trading 47.3% above its estimated fair value. The current ROIC % is 5.95% and 33.7% above the Aerospace & Defense industry median of 4.45. Leonardo SpA's overall GF Score™ is 77/100 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 Leonardo SpA (FINMY), the current ROIC % is 5.95% 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 Leonardo SpA (FINMY) Overvalued in 2026?
Based on GuruFocus' analysis, Leonardo SpA stock appears to be overvalued.
The current stock price of $26.17 is trading 47.3% above its estimated GF Value™ of $17.77.
GuruFocus considers Leonardo SpA to be Significantly Overvalued.
Key valuation signals for FINMY:
ROIC %: 5.95%
GF Value™: $17.77 vs. price of $26.17 (47.3% above fair value)
Industry Position: 33.7% above the Aerospace & Defense median
No single metric tells the full story. See the FINMY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leonardo is a leading European security firm, with 30.2% of shares owned by the Italian government. Divisions include helicopters, defence electronics & security, aeronautics, cyber & security solutions, and space.The helicopter division serves both military and civil markets. Defence electronics & security accesses the US market through the Leonardo DRS subsidiary. Aeronautics integrates aircraft and aerostructures, participating in major programs like Eurofighter, F-35, and the Global Combat Air Programme, or GCAP. It also supplies large structural components to major commercial aircraft programs. Leonardo is currently evolving from a defense firm into a data-driven global security company.
77GF Score
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ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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