ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Societatea Energetica Electrica's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 10.51%.
As of today (2026-06-26), Societatea Energetica Electrica's WACC % is 7.84%. Societatea Energetica Electrica's ROIC % is 8.69% (calculated using TTM income statement data).
Societatea Energetica Electrica 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, Societatea Energetica Electrica's WACC % is 7.84%. Societatea Energetica Electrica's ROIC % is 8.69% (calculated using TTM income statement data).
Societatea Energetica Electrica 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.
Societatea Energetica Electrica ROIC % Related Terms
Societatea Energetica Electrica 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 Utilities - Regulated Electric subindustry, Societatea Energetica Electrica'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.
Societatea Energetica Electrica ROIC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Societatea Energetica Electrica's ROIC % distribution charts can be found below:
* The bar in red indicates where Societatea Energetica Electrica'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.
Societatea Energetica Electrica (FRA:ECEB) has a ROIC % of 10.51% 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 Societatea Energetica Electrica and its competitors.
Is Societatea Energetica Electrica's ROIC % too high?
Societatea Energetica Electrica's current ROIC % is 10.51%. The Utilities - Regulated industry median ROIC % is 4.18. Societatea Energetica Electrica's value of 10.51% is 151.4% above this industry median. Overall, Societatea Energetica Electrica has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Societatea Energetica Electrica's ROIC % compare to NEE and SO?
Societatea Energetica Electrica's ROIC % of 10.51% can be compared against companies in the Utilities - Regulated industry. The industry median ROIC % is 4.18. Societatea Energetica Electrica's value of 10.51% is 151.4% 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 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. Societatea Energetica Electrica's current ROIC % of 10.51% is 151.4% 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 Societatea Energetica Electrica 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. Societatea Energetica Electrica's current ROIC % is 10.51%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Societatea Energetica Electrica stock overvalued right now?
Based on GuruFocus' analysis, Societatea Energetica Electrica (FRA:ECEB) is currently considered Significantly Overvalued. The stock's GF Value™ is €3.33, compared to a current price of €7.34 — trading 120.4% above its estimated fair value. The current ROIC % is 10.51% and 151.4% above the Utilities - Regulated industry median of 4.18. Societatea Energetica Electrica's overall GF Score™ is 40/100 with 9 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 Societatea Energetica Electrica (FRA:ECEB), the current ROIC % is 10.51% 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 Societatea Energetica Electrica (FRA:ECEB) Overvalued in 2026?
Based on GuruFocus' analysis, Societatea Energetica Electrica stock appears to be overvalued.
The current stock price of €7.34 is trading 120.4% above its estimated GF Value™ of €3.33.
GuruFocus considers Societatea Energetica Electrica to be Significantly Overvalued.
Key valuation signals for FRA:ECEB:
ROIC %: 10.51%
GF Value™: €3.33 vs. price of €7.34 (120.4% above fair value)
Industry Position: 151.4% above the Utilities - Regulated median
No single metric tells the full story. See the FRA:ECEB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Societatea Energetica Electrica Business Description
Societatea Energetica Electrica SA is a Romanian company, which is engaged in operation and development of electricity distribution networks and activities related to electricity supply to final consumers. It mainly acts as an electricity distribution operator and the main electricity supplier in North Transylvania, South Transylvania, and North Muntenia. The company operates through following segments: Electricity & gas supply, which is engaged in purchasing and supplying electricity and gas to end consumers; Electricity distribution, which provides electricity distribution services; External electricity network services, which offers repairs, maintenance and other services for electricity networks owned by other distributors; Electricity generation segment; and Headquarters.
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