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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. FTAI Aviation's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 17.78%.
As of today (2026-08-06), FTAI Aviation's WACC % is 11.32%. FTAI Aviation's ROIC % is 17.77% (calculated using TTM income statement data).
FTAI Aviation generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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, FTAI Aviation's WACC % is 11.32%. FTAI Aviation's ROIC % is 17.77% (calculated using TTM income statement data).
FTAI Aviation generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
FTAI Aviation ROIC % Related Terms
FTAI Aviation ROIC % Historical Data
* Premium members only.
The historical data trend for FTAI Aviation'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 Aerospace & Defense subindustry, FTAI Aviation'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.
FTAI Aviation ROIC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, FTAI Aviation's ROIC % distribution charts can be found below:
* The bar in red indicates where FTAI Aviation's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 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.
FTAI Aviation (FTAI) has a ROIC % of 17.78% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on FTAI Aviation and its competitors.
Is FTAI Aviation's ROIC % too high?
FTAI Aviation's current ROIC % is 17.78%. The Aerospace & Defense industry median ROIC % is 4.33. FTAI Aviation's value of 17.78% is 311.1% above this industry median. Overall, FTAI Aviation has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does FTAI Aviation's ROIC % compare to WWD and ARXS?
FTAI Aviation's ROIC % of 17.78% can be compared against companies in the Aerospace & Defense industry. The industry median ROIC % is 4.33. FTAI Aviation's value of 17.78% is 311.1% 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 an Aerospace & Defense company?
The median ROIC % among Aerospace & Defense companies is 4.33, based on 356 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. FTAI Aviation's current ROIC % of 17.78% is 311.1% 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 FTAI Aviation and its competitors. For the Aerospace & Defense industry, the median ROIC % is 4.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FTAI Aviation's current ROIC % is 17.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FTAI Aviation stock overvalued right now?
Based on GuruFocus' analysis, FTAI Aviation (FTAI) is currently considered Fairly Valued. The stock's GF Value™ is $231.18, compared to a current price of $221.22 — trading 4.3% below its estimated fair value. The current ROIC % is 17.78% and 311.1% above the Aerospace & Defense industry median of 4.33. FTAI Aviation's overall GF Score™ is 89/100 with 5 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 FTAI Aviation (FTAI), the current ROIC % is 17.78% as of Jun. 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 FTAI Aviation (FTAI) Overvalued in 2026?
Based on GuruFocus' analysis, FTAI Aviation stock appears to be undervalued.
The current stock price of $221.22 is trading 4.3% below its estimated GF Value™ of $231.18.
GuruFocus considers FTAI Aviation to be Fairly Valued.
Key valuation signals for FTAI:
ROIC %: 17.78%
GF Value™: $231.18 vs. price of $221.22 (4.3% below fair value)
Industry Position: 311.1% above the Aerospace & Defense median
No single metric tells the full story. See the FTAI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FTAI Aviation Ltd is an independent engine maintenance platform focused on the CFM56-5B, CFM56-7B, and V2500 aircraft engines, which power the 737NG and A320ceo aircraft. The company repairs and rebuilds engines in its maintenance facilities and with joint venture partners, and sells or leases engines through its proprietary Maintenance, Repair and Exchange (MRE) model under the Aerospace Products segment, which earns maximum revenue from North America and develops, repairs/refurbishes, and sells aircraft engines and aftermarket components. It also operates an Aviation Leasing segment, owning and managing a portfolio of on- and off-lease aircraft and engines, including engine transfers for rebuilding and sales.
89GF Score
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