ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Terra Innovatum Global NV's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2025 was -286.18%.
As of today (2026-06-29), Terra Innovatum Global NV's WACC % is 9.89%. Terra Innovatum Global NV's ROIC % is -369.87% (calculated using TTM income statement data).
Terra Innovatum Global NV earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Terra Innovatum Global NV (FRA:M2W) 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, Terra Innovatum Global NV's WACC % is 9.89%. Terra Innovatum Global NV's ROIC % is -369.87% (calculated using TTM income statement data).
Terra Innovatum Global NV 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 Utilities - Regulated Electric subindustry, Terra Innovatum Global NV'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.
Terra Innovatum Global NV ROIC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Terra Innovatum Global NV's ROIC % distribution charts can be found below:
* The bar in red indicates where Terra Innovatum Global NV's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Sep. 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.
Terra Innovatum Global NV (FRA:M2W) has a ROIC % of -286.18% as of Sep. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Terra Innovatum Global NV and its competitors.
Is Terra Innovatum Global NV's ROIC % too high?
Terra Innovatum Global NV's current ROIC % is -286.18%. Overall, Terra Innovatum Global NV has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Terra Innovatum Global NV's ROIC % compare to GNE and IMSR?
Terra Innovatum Global NV's ROIC % of -286.18% can be compared against companies in the Utilities - Regulated industry. The industry median ROIC % is 4.18. 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 Utilities - Regulated company?
The median ROIC % among Utilities - Regulated companies is 4.18, based on 503 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 Terra Innovatum Global NV and its competitors. For the Utilities - Regulated industry, the median ROIC % is 4.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Terra Innovatum Global NV's current ROIC % is -286.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Terra Innovatum Global NV stock overvalued right now?
Terra Innovatum Global NV (FRA:M2W) has a current ROIC % of -286.18%. The current ROIC % is -286.18%. Terra Innovatum Global NV's overall GF Score™ is 18/100. 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 Terra Innovatum Global NV (FRA:M2W), the current ROIC % is -286.18% as of Sep. 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.
Terra Innovatum Global NV is a micro modular nuclear solutions company that aims to deliver reliable, low-cost, and zero-carbon power wherever energy demand is present through its first-of-a-kind reactor, SOLO. SOLO is compact yet extremely powerful, with one unit generating 1MWe of power, while designed with the strictest safety characteristics and the ability to run 24/7 without the need to refuel for 15 years. Its modular design aims to achieve maximum energy efficiency while significantly reducing the levelized cost of energy (LCOE). SOLO is built using off-the-shelf components and widely available fuel, low-enriched uranium (LEU), which de-risks its regulatory and commercial pathway.
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