ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Ninety One's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.97%.
As of today (2026-06-28), Ninety One's WACC % is 13.13%. Ninety One's ROIC % is 1.03% (calculated using TTM income statement data).
Ninety One earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Ninety One (FRA:L91) 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, Ninety One's WACC % is 13.13%. Ninety One's ROIC % is 1.03% (calculated using TTM income statement data).
Ninety One 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.
Ninety One ROIC % Related Terms
Ninety One ROIC % Historical Data
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The historical data trend for Ninety One'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 Asset Management subindustry, Ninety One'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.
Ninety One ROIC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ninety One's ROIC % distribution charts can be found below:
* The bar in red indicates where Ninety One's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Ninety One (FRA:L91) has a ROIC % of 0.97% 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 Ninety One and its competitors.
Is Ninety One's ROIC % too high?
Ninety One's current ROIC % is 0.97%. The Asset Management industry median ROIC % is 1.21. Ninety One's value of 0.97% is 19.8% below this industry median. Overall, Ninety One has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does Ninety One's ROIC % compare to BLK and BX?
Ninety One's ROIC % of 0.97% can be compared against companies in the Asset Management industry. The industry median ROIC % is 1.21. Ninety One's value of 0.97% is 19.8% 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 an Asset Management company?
The median ROIC % among Asset Management companies is 1.21, based on 707 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. Ninety One's current ROIC % of 0.97% is 19.8% 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 Ninety One and its competitors. For the Asset Management industry, the median ROIC % is 1.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ninety One's current ROIC % is 0.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ninety One stock overvalued right now?
Ninety One (FRA:L91) has a current ROIC % of 0.97%. The stock's GF Value™ is €2.12, compared to a current price of €2.26 — trading 6.6% above its estimated fair value. The current ROIC % is 0.97% and 19.8% below the Asset Management industry median of 1.21. Ninety One's overall GF Score™ is 74/100 with 7 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 Ninety One (FRA:L91), the current ROIC % is 0.97% 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 Ninety One (FRA:L91) Overvalued in 2026?
Based on GuruFocus' analysis, Ninety One stock appears to be overvalued.
The current stock price of €2.26 is trading 6.6% above its estimated GF Value™ of €2.12.
Key valuation signals for FRA:L91:
ROIC %: 0.97%
GF Value™: €2.12 vs. price of €2.26 (6.6% above fair value)
Industry Position: 19.8% below the Asset Management median
No single metric tells the full story. See the FRA:L91 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ninety One Ltd is an asset manager. The company provides a range of differentiated strategies managed by its specialist investment teams, providing access to a diverse range of asset classes and regions. It serves its client base via five regional teams namely Africa, the United Kingdom, Asia Pacific, the Americas and Europe and across two distribution channels Institutional and Advisor. Institutional clients include private and public sector pension funds, sovereign wealth funds, insurers, corporates, foundations and central banks, while Advisor clients include large retail groups, wealth managers, private banks and intermediaries serving individual investors.
74GF Score
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