ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Ibersol SGPS's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.32%.
As of today (2026-06-29), Ibersol SGPS's WACC % is 5.58%. Ibersol SGPS's ROIC % is 4.95% (calculated using TTM income statement data).
Ibersol SGPS earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Ibersol SGPS (FRA:L34) 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, Ibersol SGPS's WACC % is 5.58%. Ibersol SGPS's ROIC % is 4.95% (calculated using TTM income statement data).
Ibersol SGPS 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.
Ibersol SGPS ROIC % Related Terms
Ibersol SGPS ROIC % Historical Data
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The historical data trend for Ibersol SGPS'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 Restaurants subindustry, Ibersol SGPS'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.
Ibersol SGPS ROIC % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Ibersol SGPS's ROIC % distribution charts can be found below:
* The bar in red indicates where Ibersol SGPS'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.
Ibersol SGPS (FRA:L34) has a ROIC % of 0.32% 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 Ibersol SGPS and its competitors.
Is Ibersol SGPS's ROIC % too high?
Ibersol SGPS's current ROIC % is 0.32%. The Restaurants industry median ROIC % is 4.24. Ibersol SGPS's value of 0.32% is 92.5% below this industry median. Overall, Ibersol SGPS has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ibersol SGPS's ROIC % compare to MCD and SBUX?
Ibersol SGPS's ROIC % of 0.32% can be compared against companies in the Restaurants industry. The industry median ROIC % is 4.24. Ibersol SGPS's value of 0.32% is 92.5% 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 Restaurants company?
The median ROIC % among Restaurants companies is 4.24, based on 358 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. Ibersol SGPS's current ROIC % of 0.32% is 92.5% 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 Ibersol SGPS and its competitors. For the Restaurants industry, the median ROIC % is 4.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ibersol SGPS's current ROIC % is 0.32%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ibersol SGPS stock overvalued right now?
Based on GuruFocus' analysis, Ibersol SGPS (FRA:L34) is currently considered Fairly Valued. The stock's GF Value™ is €9.22, compared to a current price of €9.80 — trading 6.3% above its estimated fair value. The current ROIC % is 0.32% and 92.5% below the Restaurants industry median of 4.24. Ibersol SGPS's overall GF Score™ is 86/100 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 Ibersol SGPS (FRA:L34), the current ROIC % is 0.32% 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 Ibersol SGPS (FRA:L34) Overvalued in 2026?
Based on GuruFocus' analysis, Ibersol SGPS stock appears to be overvalued.
The current stock price of €9.80 is trading 6.3% above its estimated GF Value™ of €9.22.
GuruFocus considers Ibersol SGPS to be Fairly Valued.
Key valuation signals for FRA:L34:
ROIC %: 0.32%
GF Value™: €9.22 vs. price of €9.80 (6.3% above fair value)
Industry Position: 92.5% below the Restaurants median
No single metric tells the full story. See the FRA:L34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ibersol SGPS SA., through its subsidiaries, operates a network of restaurant units in Portugal, Spain, and Angola. It provides services in the business segments such as Restaurants which comprises the units with table service and home delivery restaurant offerings, Counters which comprises the units with over-the-counter sales, and Concessions & Catering which includes all the other businesses, namely the catering activity and the units located in concession areas. Ibersol functions restaurant units through various brands, including Pizza Hut, Pasta Caffe, Pans & Company, Taco Bell, and Eat out Group. It derives maximum revenue from Concession segment.
86GF Score
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