ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. AJ Lucas Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 20.27%.
As of today (2026-07-11), AJ Lucas Group's WACC % is 1.59%. AJ Lucas Group's ROIC % is 9.24% (calculated using TTM income statement data).
AJ Lucas Group 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.
AJ Lucas Group (FRA:FW9) 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, AJ Lucas Group's WACC % is 1.59%. AJ Lucas Group's ROIC % is 9.24% (calculated using TTM income statement data).
AJ Lucas Group 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.
AJ Lucas Group ROIC % Related Terms
AJ Lucas Group ROIC % Historical Data
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The historical data trend for AJ Lucas Group'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 Coking Coal subindustry, AJ Lucas 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.
AJ Lucas Group ROIC % vs Steel Industry
For the Steel industry and Basic Materials sector, AJ Lucas Group's ROIC % distribution charts can be found below:
* The bar in red indicates where AJ Lucas Group's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) 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.
AJ Lucas Group (FRA:FW9) has a ROIC % of 20.27% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on AJ Lucas Group and its competitors.
Is AJ Lucas Group's ROIC % too high?
AJ Lucas Group's current ROIC % is 20.27%. The Steel industry median ROIC % is 2.55. AJ Lucas Group's value of 20.27% is 694.9% above this industry median.
How does AJ Lucas Group's ROIC % compare to HCC and AMR?
AJ Lucas Group's ROIC % of 20.27% can be compared against companies in the Steel industry. The industry median ROIC % is 2.55. AJ Lucas Group's value of 20.27% is 694.9% 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 a Steel company?
The median ROIC % among Steel companies is 2.55, based on 620 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. AJ Lucas Group's current ROIC % of 20.27% is 694.9% 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 AJ Lucas Group and its competitors. For the Steel industry, the median ROIC % is 2.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AJ Lucas Group's current ROIC % is 20.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AJ Lucas Group stock overvalued right now?
AJ Lucas Group (FRA:FW9) has a current ROIC % of 20.27%. The current ROIC % is 20.27% and 694.9% above the Steel industry median of 2.55. 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 AJ Lucas Group (FRA:FW9), the current ROIC % is 20.27% as of Dec. 2025. 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.
AJ Lucas Group Ltd is a provider of drilling services to the Australian coal industry, and an operator, through its subsidiary Cuadrilla Resources Holdings Limited, of exploration and appraisal of conventional and unconventional oil and gas prospects in the United Kingdom (UK). The Group is structured with two principal operating segments: Drilling (Australian operations) provides drilling services to the energy and resources sectors, but focuses on delivering a suite of degasification and exploration drilling and related services to Australian metallurgical coal mines; Oil & Gas Operations (UK investments operations) include the Exploration of unconventional and conventional hydrocarbons in the UK. It generates the majority of revenue from the Australian Operations segment.
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