ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Graphic Packaging Holding Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.40%.
As of today (2026-06-25), Graphic Packaging Holding Co's WACC % is 5.28%. Graphic Packaging Holding Co's ROIC % is 5.12% (calculated using TTM income statement data).
Graphic Packaging Holding Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Graphic Packaging Holding Co (NYSE:GPK) 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, Graphic Packaging Holding Co's WACC % is 5.28%. Graphic Packaging Holding Co's ROIC % is 5.12% (calculated using TTM income statement data).
Graphic Packaging Holding Co 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.
Graphic Packaging Holding Co ROIC % Related Terms
Graphic Packaging Holding Co 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.
For the Packaging & Containers subindustry, Graphic Packaging Holding Co'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.
Graphic Packaging Holding Co ROIC % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Graphic Packaging Holding Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Graphic Packaging Holding Co'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.
Graphic Packaging Holding Co (GPK) has a ROIC % of 3.40% 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 Graphic Packaging Holding Co and its competitors.
Is Graphic Packaging Holding Co's ROIC % too high?
Graphic Packaging Holding Co's current ROIC % is 3.40%. The Packaging & Containers industry median ROIC % is 4.16. Graphic Packaging Holding Co's value of 3.40% is 18.3% below this industry median. Overall, Graphic Packaging Holding Co has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Graphic Packaging Holding Co's ROIC % compare to GEF and SLGN?
Graphic Packaging Holding Co's ROIC % of 3.40% can be compared against companies in the Packaging & Containers industry. The industry median ROIC % is 4.16. Graphic Packaging Holding Co's value of 3.40% is 18.3% 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 Packaging & Containers company?
The median ROIC % among Packaging & Containers companies is 4.16, based on 397 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. Graphic Packaging Holding Co's current ROIC % of 3.40% is 18.3% 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 Graphic Packaging Holding Co and its competitors. For the Packaging & Containers industry, the median ROIC % is 4.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Graphic Packaging Holding Co's current ROIC % is 3.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Graphic Packaging Holding Co stock overvalued right now?
Based on GuruFocus' analysis, Graphic Packaging Holding Co (GPK) is currently considered Possible Value Trap. The stock's GF Value™ is $23.07, compared to a current price of $10.91 — trading 52.7% below its estimated fair value. The current ROIC % is 3.40% and 18.3% below the Packaging & Containers industry median of 4.16. Graphic Packaging Holding Co's overall GF Score™ is 64/100 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 Graphic Packaging Holding Co (GPK), the current ROIC % is 3.40% 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 Graphic Packaging Holding Co (GPK) Overvalued in 2026?
Based on GuruFocus' analysis, Graphic Packaging Holding Co stock appears to be undervalued.
The current stock price of $10.91 is trading 52.7% below its estimated GF Value™ of $23.07.
GuruFocus considers Graphic Packaging Holding Co to be Possible Value Trap.
Key valuation signals for GPK:
ROIC %: 3.40%
GF Value™: $23.07 vs. price of $10.91 (52.7% below fair value)
Industry Position: 18.3% below the Packaging & Containers median
No single metric tells the full story. See the GPK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Graphic Packaging Holding Co is a holding company that manufactures and sells a variety of paper-based consumer packaging products through its subsidiaries. The company's reportable segments are; Americas Paperboard Packaging, and International Paperboard Packaging. The majority of the revenue is generated from its Americas Paperboard Packaging segment which includes paperboard packaging sold predominantly to consumer packaged goods (CPG) companies and cups, lids and food containers sold to foodservice companies and quick-service restaurants (QSR) serving the food, beverage, and consumer product markets in the Americas. Geographically, the company operates in Americas, Europe and Asia Pacific regions.
64GF Score
Get the complete analysis for GPK
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
GPK has been successfully added to your 
