ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Fevertree Drinks's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 12.45%.
As of today (2026-06-25), Fevertree Drinks's WACC % is 13.79%. Fevertree Drinks's ROIC % is 11.23% (calculated using TTM income statement data).
Fevertree Drinks earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Fevertree Drinks (OTCPK:FQVTY) 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, Fevertree Drinks's WACC % is 13.79%. Fevertree Drinks's ROIC % is 11.23% (calculated using TTM income statement data).
Fevertree Drinks 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.
Fevertree Drinks ROIC % Related Terms
Fevertree Drinks ROIC % Historical Data
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The historical data trend for Fevertree Drinks'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 Beverages - Non-Alcoholic subindustry, Fevertree Drinks'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.
Fevertree Drinks ROIC % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Fevertree Drinks's ROIC % distribution charts can be found below:
* The bar in red indicates where Fevertree Drinks's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 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.
Fevertree Drinks (FQVTY) has a ROIC % of 12.45% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Fevertree Drinks and its competitors.
Is Fevertree Drinks' ROIC % too high?
Fevertree Drinks' current ROIC % is 12.45%. The Beverages - Non-Alcoholic industry median ROIC % is 8.72. Fevertree Drinks' value of 12.45% is 42.9% above this industry median. Overall, Fevertree Drinks has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fevertree Drinks' ROIC % compare to KO and PEP?
Fevertree Drinks' ROIC % of 12.45% can be compared against companies in the Beverages - Non-Alcoholic industry. The industry median ROIC % is 8.72. Fevertree Drinks' value of 12.45% is 42.9% 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 Beverages - Non-Alcoholic company?
The median ROIC % among Beverages - Non-Alcoholic companies is 8.72, based on 114 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. Fevertree Drinks's current ROIC % of 12.45% is 42.9% 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 Fevertree Drinks and its competitors. For the Beverages - Non-Alcoholic industry, the median ROIC % is 8.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fevertree Drinks's current ROIC % is 12.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fevertree Drinks stock overvalued right now?
Based on GuruFocus' analysis, Fevertree Drinks (FQVTY) is currently considered Fairly Valued. The stock's GF Value™ is $12.60, compared to a current price of $11.19 — trading 11.2% below its estimated fair value. The current ROIC % is 12.45% and 42.9% above the Beverages - Non-Alcoholic industry median of 8.72. Fevertree Drinks' overall GF Score™ is 64/100 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 Fevertree Drinks (FQVTY), the current ROIC % is 12.45% as of Dec. 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 Fevertree Drinks (FQVTY) Overvalued in 2026?
Based on GuruFocus' analysis, Fevertree Drinks stock appears to be undervalued.
The current stock price of $11.19 is trading 11.2% below its estimated GF Value™ of $12.60.
GuruFocus considers Fevertree Drinks to be Fairly Valued.
Key valuation signals for FQVTY:
ROIC %: 12.45%
GF Value™: $12.60 vs. price of $11.19 (11.2% below fair value)
Industry Position: 42.9% above the Beverages - Non-Alcoholic median
No single metric tells the full story. See the FQVTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fevertree Drinks PLC is a UK based holding and investment company. The company is engaged in the business activity of developing and marketing premium mixer drinks. Its product portfolio includes Indian tonic water, Mediterranean tonic water, Elderflower tonic water, Aromatic tonic water, Clementine tonic water, Lemon tonic water, Ginger beer, Ginger ale, Smoky ginger ale, Spiced orange ginger ale, Madagascan cola, Sicilian lemonade, Lemonade, Premium Soda Water and Mediterranean Orange. Geographically, company is divided into two segments US segment representing profits from USA cities and Rest of Group segment which represents profits directly attributable to UK, European and RoW regions of which majority of the revenue is from the United Kingdom.
64GF Score
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