ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Grupo HerdezB de CV's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.98%.
As of today (2026-06-25), Grupo HerdezB de CV's WACC % is 9.89%. Grupo HerdezB de CV's ROIC % is 10.91% (calculated using TTM income statement data).
Grupo HerdezB de CV 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.
Grupo HerdezB de CV (OTCPK:GUZOF) 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, Grupo HerdezB de CV's WACC % is 9.89%. Grupo HerdezB de CV's ROIC % is 10.91% (calculated using TTM income statement data).
Grupo HerdezB de CV 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.
Grupo HerdezB de CV ROIC % Related Terms
Grupo HerdezB de CV ROIC % Historical Data
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The historical data trend for Grupo HerdezB de CV'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 Packaged Foods subindustry, Grupo HerdezB de CV'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.
Grupo HerdezB de CV ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Grupo HerdezB de CV's ROIC % distribution charts can be found below:
* The bar in red indicates where Grupo HerdezB de CV'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.
Grupo HerdezB de CV (GUZOF) has a ROIC % of 5.98% 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 Grupo HerdezB de CV and its competitors.
Is Grupo HerdezB de CV's ROIC % too high?
Grupo HerdezB de CV's current ROIC % is 5.98%. The Consumer Packaged Goods industry median ROIC % is 5.14. Grupo HerdezB de CV's value of 5.98% is 16.3% above this industry median. Overall, Grupo HerdezB de CV has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Grupo HerdezB de CV's ROIC % compare to KHC and GIS?
Grupo HerdezB de CV's ROIC % of 5.98% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.14. Grupo HerdezB de CV's value of 5.98% is 16.3% 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 Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.14, based on 1,948 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. Grupo HerdezB de CV's current ROIC % of 5.98% is 16.3% 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 Grupo HerdezB de CV and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grupo HerdezB de CV's current ROIC % is 5.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grupo HerdezB de CV stock overvalued right now?
Based on GuruFocus' analysis, Grupo HerdezB de CV (GUZOF) is currently considered Fairly Valued. The stock's GF Value™ is $3.02, compared to a current price of $2.94 — trading 2.6% below its estimated fair value. The current ROIC % is 5.98% and 16.3% above the Consumer Packaged Goods industry median of 5.14. Grupo HerdezB de CV's overall GF Score™ is 89/100 with 4 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 Grupo HerdezB de CV (GUZOF), the current ROIC % is 5.98% 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 Grupo HerdezB de CV (GUZOF) Overvalued in 2026?
Based on GuruFocus' analysis, Grupo HerdezB de CV stock appears to be undervalued.
The current stock price of $2.94 is trading 2.6% below its estimated GF Value™ of $3.02.
GuruFocus considers Grupo HerdezB de CV to be Fairly Valued.
Key valuation signals for GUZOF:
ROIC %: 5.98%
GF Value™: $3.02 vs. price of $2.94 (2.6% below fair value)
Industry Position: 16.3% above the Consumer Packaged Goods median
No single metric tells the full story. See the GUZOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grupo Herdez SAB de CV specialises in the processed food and ice cream industries, with its operations primarily in Mexico. The company engages in the manufacturing, purchasing, distributing, and marketing of canned and packaged food products in Mexico, as well as food products at the Mexican food segment within the United States. Product segments include burritos, canned vegetables, frozen yogurt, guacamole, and home-style salsas. Products are then sold through a variety of brands, such as Aires de Campo, Barilla, Bufalo and many more.
89GF Score
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