ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Advantage Solutions's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.59%.
As of today (2026-06-26), Advantage Solutions's WACC % is 10.18%. Advantage Solutions's ROIC % is 1.38% (calculated using TTM income statement data).
Advantage Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Advantage Solutions (FRA:6CP) 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, Advantage Solutions's WACC % is 10.18%. Advantage Solutions's ROIC % is 1.38% (calculated using TTM income statement data).
Advantage Solutions 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.
Advantage Solutions ROIC % Related Terms
Advantage Solutions ROIC % Historical Data
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The historical data trend for Advantage Solutions'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 Advertising Agencies subindustry, Advantage Solutions'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.
Advantage Solutions ROIC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Advantage Solutions's ROIC % distribution charts can be found below:
* The bar in red indicates where Advantage Solutions'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.
Advantage Solutions (FRA:6CP) has a ROIC % of 0.59% 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 Advantage Solutions and its competitors.
Is Advantage Solutions' ROIC % too high?
Advantage Solutions' current ROIC % is 0.59%. The Media - Diversified industry median ROIC % is 1.41. Advantage Solutions' value of 0.59% is 58% below this industry median. Overall, Advantage Solutions has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Advantage Solutions' ROIC % compare to NEXN and NCMI?
Advantage Solutions' ROIC % of 0.59% can be compared against companies in the Media - Diversified industry. The industry median ROIC % is 1.41. Advantage Solutions' value of 0.59% is 58% 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 a Media - Diversified company?
The median ROIC % among Media - Diversified companies is 1.41, based on 1,016 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. Advantage Solutions's current ROIC % of 0.59% is 58% 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 Advantage Solutions and its competitors. For the Media - Diversified industry, the median ROIC % is 1.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advantage Solutions's current ROIC % is 0.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advantage Solutions stock overvalued right now?
Advantage Solutions (FRA:6CP) has a current ROIC % of 0.59%. The stock's GF Value™ is €42.30, compared to a current price of €29.76 — trading 29.6% below its estimated fair value. The current ROIC % is 0.59% and 58% below the Media - Diversified industry median of 1.41. Advantage Solutions' overall GF Score™ is 64/100 with 5 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 Advantage Solutions (FRA:6CP), the current ROIC % is 0.59% 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 Advantage Solutions (FRA:6CP) Overvalued in 2026?
Based on GuruFocus' analysis, Advantage Solutions stock appears to be undervalued.
The current stock price of €29.76 is trading 29.6% below its estimated GF Value™ of €42.30.
Key valuation signals for FRA:6CP:
ROIC %: 0.59%
GF Value™: €42.30 vs. price of €29.76 (29.6% below fair value)
Industry Position: 58% below the Media - Diversified median
No single metric tells the full story. See the FRA:6CP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advantage Solutions Inc provides outsourced sales, marketing, merchandising, sampling, and retailer support services to consumer packaged goods manufacturers and retailers across North America. Its services are designed to support distribution, retail execution, shopper engagement, and private brand development across both physical and digital commerce environments. The company serves various clients across grocery, mass, club, retail pharmacy, convenience, and other channels. It operates through three reportable segments: Branded Services, Experiential Services, and Retailer Services. The majority of the revenue is derived from the Experiential Services segment, which provides in-store and digital sampling programs, demonstrations, and experiential events for manufacturers and retailers.
64GF Score
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