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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Addtech AB's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 13.88%.
As of today (2026-08-22), Addtech AB's WACC % is 8.92%. Addtech AB's ROIC % is 13.34% (calculated using TTM income statement data).
Addtech AB 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, Addtech AB's WACC % is 8.92%. Addtech AB's ROIC % is 13.34% (calculated using TTM income statement data).
Addtech AB 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.
Addtech AB ROIC % Related Terms
Addtech AB ROIC % Historical Data
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The historical data trend for Addtech AB'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 Industrial Distribution subindustry, Addtech AB'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.
Addtech AB ROIC % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Addtech AB's ROIC % distribution charts can be found below:
* The bar in red indicates where Addtech AB's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 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.
Addtech AB (FRA:AZZ2) has a ROIC % of 13.88% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Addtech AB and its competitors.
Is Addtech AB's ROIC % too high?
Addtech AB's current ROIC % is 13.88%. The Industrial Distribution industry median ROIC % is 6.03. Addtech AB's value of 13.88% is 130.4% above this industry median. Overall, Addtech AB has a GF Score™ of 98/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Addtech AB's ROIC % compare to GWW and FAST?
Addtech AB's ROIC % of 13.88% can be compared against companies in the Industrial Distribution industry. The industry median ROIC % is 6.03. Addtech AB's value of 13.88% is 130.4% 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 Industrial Distribution company?
The median ROIC % among Industrial Distribution companies is 6.03, based on 158 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. Addtech AB's current ROIC % of 13.88% is 130.4% 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 Addtech AB and its competitors. For the Industrial Distribution industry, the median ROIC % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Addtech AB's current ROIC % is 13.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Addtech AB stock overvalued right now?
Based on GuruFocus' analysis, Addtech AB (FRA:AZZ2) is currently considered Fairly Valued. The stock's GF Value™ is €30.20, compared to a current price of €30.14 — trading 0.2% below its estimated fair value. The current ROIC % is 13.88% and 130.4% above the Industrial Distribution industry median of 6.03. Addtech AB's overall GF Score™ is 98/100 with 2 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 Addtech AB (FRA:AZZ2), the current ROIC % is 13.88% as of Jun. 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 Addtech AB (FRA:AZZ2) Overvalued in 2026?
Based on GuruFocus' analysis, Addtech AB stock appears to be undervalued.
The current stock price of €30.14 is trading 0.2% below its estimated GF Value™ of €30.20.
GuruFocus considers Addtech AB to be Fairly Valued.
Key valuation signals for FRA:AZZ2:
ROIC %: 13.88%
GF Value™: €30.20 vs. price of €30.14 (0.2% below fair value)
Industry Position: 130.4% above the Industrial Distribution median
No single metric tells the full story. See the FRA:AZZ2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Addtech AB is a group of businesses offering high-tech products and solutions to customers in the manufacturing and infrastructure sectors. The company's segments include Automation, Electrification, Energy, Industrial Solutions, and Process Technology. It generates maximum revenue from the Energy segment. Energy produces and sells products for electricity transmission, electrical installation, and safety products in transport. Geographically, the company derives maximum revenue from Sweden, and the rest from Denmark, Finland, Germany, Norway, the United Kingdom, the Rest of Europe, and other countries.
98GF Score
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