ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. KAP AG's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -56.28%.
As of today (2026-07-04), KAP AG's WACC % is 7.48%. KAP AG's ROIC % is -28.77% (calculated using TTM income statement data).
KAP AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
KAP AG (FRA:IUR) 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, KAP AG's WACC % is 7.48%. KAP AG's ROIC % is -28.77% (calculated using TTM income statement data).
KAP AG 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.
KAP AG ROIC % Related Terms
KAP AG ROIC % Historical Data
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The historical data trend for KAP AG'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 Conglomerates subindustry, KAP AG'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.
KAP AG ROIC % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, KAP AG's ROIC % distribution charts can be found below:
* The bar in red indicates where KAP AG'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.
KAP AG (FRA:IUR) has a ROIC % of -56.28% 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 KAP AG and its competitors.
Is KAP AG's ROIC % too high?
KAP AG's current ROIC % is -56.28%. Overall, KAP AG has a GF Score™ of 41/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does KAP AG's ROIC % compare to HON and MMM?
KAP AG's ROIC % of -56.28% can be compared against companies in the Conglomerates industry. The industry median ROIC % is 2.79. 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 Conglomerates company?
The median ROIC % among Conglomerates companies is 2.79, based on 553 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. 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 KAP AG and its competitors. For the Conglomerates industry, the median ROIC % is 2.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KAP AG's current ROIC % is -56.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KAP AG stock overvalued right now?
Based on GuruFocus' analysis, KAP AG (FRA:IUR) is currently considered Possible Value Trap. The stock's GF Value™ is €8.45, compared to a current price of €1.90 — trading 77.5% below its estimated fair value. The current ROIC % is -56.28%. KAP AG's overall GF Score™ is 41/100 with 4 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 KAP AG (FRA:IUR), the current ROIC % is -56.28% 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.
Is KAP AG (FRA:IUR) Overvalued in 2026?
Based on GuruFocus' analysis, KAP AG stock appears to be undervalued.
The current stock price of €1.90 is trading 77.5% below its estimated GF Value™ of €8.45.
GuruFocus considers KAP AG to be Possible Value Trap.
Key valuation signals for FRA:IUR:
ROIC %: -56.28%
GF Value™: €8.45 vs. price of €1.90 (77.5% below fair value)
No single metric tells the full story. See the FRA:IUR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KAP AG is a German industrial holding company that provides engineered products and automotive components. The Flexible films segment generates maximum revenue, it is into extrusion coatings, calendaring and the conditioning of coated products. The engineered products segment includes develops, produces and sells technical fabrics and yarns whereas Surface technologies with chemical and physical conditioning specialized surface processes for refining metallic materials such as aluminum, magnesium, zinc die-casting or steel. Precision components segment manufacturers the precision components Geographically, the business presence of the firm is seen in the region of Germany, Rest of Europe, North/South America, Asia and in Other Countries.
41GF Score
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