ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Commercial Vehicle Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.35%.
As of today (2026-07-01), Commercial Vehicle Group's WACC % is 9.43%. Commercial Vehicle Group's ROIC % is -0.45% (calculated using TTM income statement data).
Commercial Vehicle Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Commercial Vehicle Group (FRA:FDU) 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, Commercial Vehicle Group's WACC % is 9.43%. Commercial Vehicle Group's ROIC % is -0.45% (calculated using TTM income statement data).
Commercial Vehicle Group 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.
* 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 Auto Parts subindustry, Commercial Vehicle Group'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.
Commercial Vehicle Group ROIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Commercial Vehicle Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Commercial Vehicle Group'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.
Commercial Vehicle Group (FRA:FDU) has a ROIC % of 0.35% 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 Commercial Vehicle Group and its competitors.
Is Commercial Vehicle Group's ROIC % too high?
Commercial Vehicle Group's current ROIC % is 0.35%. The Vehicles & Parts industry median ROIC % is 5.07. Commercial Vehicle Group's value of 0.35% is 93.1% below this industry median. Overall, Commercial Vehicle Group has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Commercial Vehicle Group's ROIC % compare to CAAS and INVZ?
Commercial Vehicle Group's ROIC % of 0.35% can be compared against companies in the Vehicles & Parts industry. The industry median ROIC % is 5.07. Commercial Vehicle Group's value of 0.35% is 93.1% 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 Vehicles & Parts company?
The median ROIC % among Vehicles & Parts companies is 5.07, based on 1,314 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. Commercial Vehicle Group's current ROIC % of 0.35% is 93.1% 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 Commercial Vehicle Group and its competitors. For the Vehicles & Parts industry, the median ROIC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Commercial Vehicle Group's current ROIC % is 0.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Commercial Vehicle Group stock overvalued right now?
Based on GuruFocus' analysis, Commercial Vehicle Group (FRA:FDU) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.36, compared to a current price of €4.00 — trading 69.5% above its estimated fair value. The current ROIC % is 0.35% and 93.1% below the Vehicles & Parts industry median of 5.07. Commercial Vehicle Group's overall GF Score™ is 46/100 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 Commercial Vehicle Group (FRA:FDU), the current ROIC % is 0.35% 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 Commercial Vehicle Group (FRA:FDU) Overvalued in 2026?
Based on GuruFocus' analysis, Commercial Vehicle Group stock appears to be overvalued.
The current stock price of €4.00 is trading 69.5% above its estimated GF Value™ of €2.36.
GuruFocus considers Commercial Vehicle Group to be Significantly Overvalued.
Key valuation signals for FRA:FDU:
ROIC %: 0.35%
GF Value™: €2.36 vs. price of €4.00 (69.5% above fair value)
Industry Position: 93.1% below the Vehicles & Parts median
No single metric tells the full story. See the FRA:FDU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Commercial Vehicle Group Inc and its subsidiaries are a globalised provider of systems, assemblies, and components to international commercial vehicle markets and electric vehicle markets. It delivers real solutions to complex design, engineering, and manufacturing problems while creating positive change for customers, industries, and communities it serves. The company has its manufacturing operations in the United States, Mexico, China, the United Kingdom, the Czech Republic, Ukraine, Morocco, Thailand, India, and Australia. Organisations' products are mainly sold in North America, Europe, and the Asia-Pacific region. It has three segments: Global Seating Segment, Global Electrical systmem, and Trim Systems and Components Segment, with the majority of revenue from Global Seating Segment.
46GF Score
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