ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. CEZ AS's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 8.43%.
As of today (2026-06-28), CEZ AS's WACC % is 3.75%. CEZ AS's ROIC % is 4.59% (calculated using TTM income statement data).
CEZ AS 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.
CEZ AS (FRA:CEZ) 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, CEZ AS's WACC % is 3.75%. CEZ AS's ROIC % is 4.59% (calculated using TTM income statement data).
CEZ AS 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.
CEZ AS ROIC % Related Terms
CEZ AS ROIC % Historical Data
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The historical data trend for CEZ AS'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 Utilities - Regulated Electric subindustry, CEZ AS'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.
CEZ AS ROIC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, CEZ AS's ROIC % distribution charts can be found below:
* The bar in red indicates where CEZ AS'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.
CEZ AS (FRA:CEZ) has a ROIC % of 8.43% 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 CEZ AS and its competitors.
Is CEZ AS's ROIC % too high?
CEZ AS's current ROIC % is 8.43%. The Utilities - Regulated industry median ROIC % is 4.18. CEZ AS's value of 8.43% is 101.7% above this industry median. Overall, CEZ AS has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CEZ AS's ROIC % compare to NEE and SO?
CEZ AS's ROIC % of 8.43% can be compared against companies in the Utilities - Regulated industry. The industry median ROIC % is 4.18. CEZ AS's value of 8.43% is 101.7% 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 Utilities - Regulated company?
The median ROIC % among Utilities - Regulated companies is 4.18, based on 501 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. CEZ AS's current ROIC % of 8.43% is 101.7% 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 CEZ AS and its competitors. For the Utilities - Regulated industry, the median ROIC % is 4.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CEZ AS's current ROIC % is 8.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CEZ AS stock overvalued right now?
Based on GuruFocus' analysis, CEZ AS (FRA:CEZ) is currently considered Modestly Overvalued. The stock's GF Value™ is €44.94, compared to a current price of €49.60 — trading 10.4% above its estimated fair value. The current ROIC % is 8.43% and 101.7% above the Utilities - Regulated industry median of 4.18. CEZ AS's overall GF Score™ is 77/100 with 7 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 CEZ AS (FRA:CEZ), the current ROIC % is 8.43% 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 CEZ AS (FRA:CEZ) Overvalued in 2026?
Based on GuruFocus' analysis, CEZ AS stock appears to be overvalued.
The current stock price of €49.60 is trading 10.4% above its estimated GF Value™ of €44.94.
GuruFocus considers CEZ AS to be Modestly Overvalued.
Key valuation signals for FRA:CEZ:
ROIC %: 8.43%
GF Value™: €44.94 vs. price of €49.60 (10.4% above fair value)
Industry Position: 101.7% above the Utilities - Regulated median
No single metric tells the full story. See the FRA:CEZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CEZ AS is a Czech energy company of which the government of the Czech Republic is the majority shareholder. The core business of the company is the generation, distribution, trade, and sale of electricity and heat, coal mining, trading in commodities and provision of complex energy services, distribution, trade, and sale of natural gas, and the provision of telecommunications services. Total energy production is mainly split between facilities utilizing thermal and nuclear inputs. CEZ segments comprise Generation; Distribution; Sales and Mining. The group operates mainly in Czechia and in Central and Western European markets.
77GF Score
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