ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Air Water's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2025 was -8.97%.
As of today (2026-06-28), Air Water's WACC % is 2.69%. Air Water's ROIC % is 1.54% (calculated using TTM income statement data).
Air Water earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Air Water (FRA:0AW) 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, Air Water's WACC % is 2.69%. Air Water's ROIC % is 1.54% (calculated using TTM income statement data).
Air Water 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.
Air Water ROIC % Related Terms
Air Water ROIC % Historical Data
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The historical data trend for Air Water'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 Specialty Chemicals subindustry, Air Water'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.
Air Water ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Air Water's ROIC % distribution charts can be found below:
* The bar in red indicates where Air Water's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Sep. 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.
Air Water (FRA:0AW) has a ROIC % of -8.97% as of Sep. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Air Water and its competitors.
Is Air Water's ROIC % too high?
Air Water's current ROIC % is -8.97%. Overall, Air Water has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Air Water's ROIC % compare to LIN and SHW?
Air Water's ROIC % of -8.97% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.46. 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.46, based on 1,581 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 Air Water and its competitors. For the Chemicals industry, the median ROIC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Water's current ROIC % is -8.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Water stock overvalued right now?
Based on GuruFocus' analysis, Air Water (FRA:0AW) is currently considered Significantly Overvalued. The stock's GF Value™ is €11.77, compared to a current price of €14.80 — trading 25.7% above its estimated fair value. The current ROIC % is -8.97%. Air Water's overall GF Score™ is 86/100 with 14 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 Air Water (FRA:0AW), the current ROIC % is -8.97% as of Sep. 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 Air Water (FRA:0AW) Overvalued in 2026?
Based on GuruFocus' analysis, Air Water stock appears to be overvalued.
The current stock price of €14.80 is trading 25.7% above its estimated GF Value™ of €11.77.
GuruFocus considers Air Water to be Significantly Overvalued.
Key valuation signals for FRA:0AW:
ROIC %: -8.97%
GF Value™: €11.77 vs. price of €14.80 (25.7% above fair value)
No single metric tells the full story. See the FRA:0AW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Water Inc is a diversified conglomerate engaged in the supply of industrial gases and various other businesses and services. The company operates through five segments. The Agri & Foods segment covers the processing and distribution of fruits and vegetables, frozen foods, meat products, and contract manufacturing of beverages. The Digital & Industry segment focuses on industrial gases, electrical, and functional materials. The Energy Solutions segment deals with LP gas, kerosene, and related equipment. The Health & Safety segment provides medical gases, dental and protective materials, hospital equipment, and home medical care services. The Other Businesses segment includes logistics, salt production, overseas industrial gas operations, biomass power, and high-output UPS solutions.
86GF Score
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