ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Universal Insurance Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 10.84%.
As of today (2026-06-25), Universal Insurance Holdings's WACC % is 7.54%. Universal Insurance Holdings's ROIC % is 9.41% (calculated using TTM income statement data).
Universal Insurance Holdings 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.
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, Universal Insurance Holdings's WACC % is 7.54%. Universal Insurance Holdings's ROIC % is 9.41% (calculated using TTM income statement data).
Universal Insurance Holdings 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.
Universal Insurance Holdings ROIC % Related Terms
Universal Insurance Holdings ROIC % Historical Data
* 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 Insurance - Property & Casualty subindustry, Universal Insurance Holdings'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.
Universal Insurance Holdings ROIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, Universal Insurance Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Universal Insurance Holdings's ROIC % falls into.
Note:
The EBIT 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.
Universal Insurance Holdings (FRA:5UI) has a ROIC % of 10.84% 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 Universal Insurance Holdings and its competitors.
Is Universal Insurance Holdings' ROIC % too high?
Universal Insurance Holdings' current ROIC % is 10.84%. The Insurance industry median ROIC % is 3.37. Universal Insurance Holdings' value of 10.84% is 222.1% above this industry median. Overall, Universal Insurance Holdings has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Universal Insurance Holdings' ROIC % compare to SAFT and HGTY?
Universal Insurance Holdings' ROIC % of 10.84% can be compared against companies in the Insurance industry. The industry median ROIC % is 3.37. Universal Insurance Holdings' value of 10.84% is 222.1% 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 Insurance company?
The median ROIC % among Insurance companies is 3.37, based on 370 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. Universal Insurance Holdings's current ROIC % of 10.84% is 222.1% 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 Universal Insurance Holdings and its competitors. For the Insurance industry, the median ROIC % is 3.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Insurance Holdings's current ROIC % is 10.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Insurance Holdings stock overvalued right now?
Based on GuruFocus' analysis, Universal Insurance Holdings (FRA:5UI) is currently considered Significantly Overvalued. The stock's GF Value™ is €19.39, compared to a current price of €34.80 — trading 79.5% above its estimated fair value. The current ROIC % is 10.84% and 222.1% above the Insurance industry median of 3.37. Universal Insurance Holdings' overall GF Score™ is 53/100 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 Universal Insurance Holdings (FRA:5UI), the current ROIC % is 10.84% 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 Universal Insurance Holdings (FRA:5UI) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Insurance Holdings stock appears to be overvalued.
The current stock price of €34.80 is trading 79.5% above its estimated GF Value™ of €19.39.
GuruFocus considers Universal Insurance Holdings to be Significantly Overvalued.
Key valuation signals for FRA:5UI:
ROIC %: 10.84%
GF Value™: €19.39 vs. price of €34.80 (79.5% above fair value)
Industry Position: 222.1% above the Insurance median
No single metric tells the full story. See the FRA:5UI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Insurance Holdings Inc is an insurance holding company. Through its subsidiaries, the company mainly offers property and casualty insurance and value-added insurance services. It develops, markets, and underwrites insurance products for consumers predominantly in the personal residential homeowners lines of business and performs all other insurance-related services for its primary insurance entities, including risk management, claims management, and distribution. The group offers the following types of personal residential insurance: homeowners, renters/tenants, condo unit owners, and dwelling/fire, through an independent agent network and online distribution channels across multiple states in the United States of America.
53GF Score
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