ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. TMM Real Estate Development's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 17.90%.
As of today (2026-07-02), TMM Real Estate Development's WACC % is 0.00%. TMM Real Estate Development's ROIC % is 0.00% (calculated using TTM income statement data).
TMM Real Estate Development earns returns that do not match up to its cost of capital. It will destroy value as it grows.
TMM Real Estate Development (FRA:TR61) 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, TMM Real Estate Development's WACC % is 0.00%. TMM Real Estate Development's ROIC % is 0.00% (calculated using TTM income statement data).
TMM Real Estate Development 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.
TMM Real Estate Development ROIC % Related Terms
TMM Real Estate Development ROIC % Historical Data
* 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.
TMM Real Estate Development ROIC % Competitor Comparison
For the Real Estate - Diversified subindustry, TMM Real Estate Development'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.
TMM Real Estate Development ROIC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, TMM Real Estate Development's ROIC % distribution charts can be found below:
* The bar in red indicates where TMM Real Estate Development's ROIC % falls into.
Note:
The Operating Income data used here is one times the annual (Dec. 2023) 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.
TMM Real Estate Development (FRA:TR61) has a ROIC % of 17.90% as of Dec. 2023. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on TMM Real Estate Development and its competitors.
Is TMM Real Estate Development's ROIC % too high?
TMM Real Estate Development's current ROIC % is 17.90%. The Real Estate industry median ROIC % is 2.18. TMM Real Estate Development's value of 17.90% is 721.1% above this industry median. Overall, TMM Real Estate Development has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does TMM Real Estate Development's ROIC % compare to competitors?
TMM Real Estate Development's ROIC % of 17.90% can be compared against companies in the Real Estate industry. The industry median ROIC % is 2.18. TMM Real Estate Development's value of 17.90% is 721.1% 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 Real Estate company?
The median ROIC % among Real Estate companies is 2.18, based on 1,756 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. TMM Real Estate Development's current ROIC % of 17.90% is 721.1% 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 TMM Real Estate Development and its competitors. For the Real Estate industry, the median ROIC % is 2.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TMM Real Estate Development's current ROIC % is 17.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TMM Real Estate Development stock overvalued right now?
TMM Real Estate Development (FRA:TR61) has a current ROIC % of 17.90%. The current ROIC % is 17.90% and 721.1% above the Real Estate industry median of 2.18. TMM Real Estate Development's overall GF Score™ is 39/100. 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 TMM Real Estate Development (FRA:TR61), the current ROIC % is 17.90% as of Dec. 2023. 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.
TMM Real Estate Development PLC operates as a real estate development and construction company and develops the construction of residential complexes on a turnkey basis, which covers all complex construction and fine finishing works as well as post-construction utility services for the completed projects. It operates in the following segments: Investment Property; Property Development & Construction; Utility and Management Services; and Air Mobility Solutions. The Investment Property segment leases residential and commercial property owned by the group. The Property Development & Construction segment builds and sells residential and commercial property and renders construction services. The Air Mobility Solutions segment earns the majority of revenue.
39GF Score
Get the complete analysis for FRA:TR61
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:TR61 has been successfully added to your 
