ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Frosta AG's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 14.55%.
As of today (2026-07-02), Frosta AG's WACC % is 4.15%. Frosta AG's ROIC % is 15.54% (calculated using TTM income statement data).
Frosta AG 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.
Frosta AG (HAM:NLM) 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, Frosta AG's WACC % is 4.15%. Frosta AG's ROIC % is 15.54% (calculated using TTM income statement data).
Frosta AG 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.
Frosta AG ROIC % Related Terms
Frosta AG ROIC % Historical Data
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The historical data trend for Frosta AG'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, Frosta AG'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.
Frosta AG ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Frosta AG's ROIC % distribution charts can be found below:
* The bar in red indicates where Frosta AG's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 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.
Frosta AG (HAM:NLM) has a ROIC % of 14.55% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Frosta AG and its competitors.
Is Frosta AG's ROIC % too high?
Frosta AG's current ROIC % is 14.55%. The Consumer Packaged Goods industry median ROIC % is 5.13. Frosta AG's value of 14.55% is 183.6% above this industry median. Overall, Frosta AG has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Frosta AG's ROIC % compare to KHC and GIS?
Frosta AG's ROIC % of 14.55% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.13. Frosta AG's value of 14.55% is 183.6% 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 5.13, based on 1,942 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. Frosta AG's current ROIC % of 14.55% is 183.6% 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 Frosta AG and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frosta AG's current ROIC % is 14.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frosta AG stock overvalued right now?
Based on GuruFocus' analysis, Frosta AG (HAM:NLM) is currently considered Significantly Overvalued. The stock's GF Value™ is €73.41, compared to a current price of €97.80 — trading 33.2% above its estimated fair value. The current ROIC % is 14.55% and 183.6% above the Consumer Packaged Goods industry median of 5.13. Frosta AG's overall GF Score™ is 79/100 with 3 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 Frosta AG (HAM:NLM), the current ROIC % is 14.55% as of Dec. 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.
Is Frosta AG (HAM:NLM) Overvalued in 2026?
Based on GuruFocus' analysis, Frosta AG stock appears to be overvalued.
The current stock price of €97.80 is trading 33.2% above its estimated GF Value™ of €73.41.
GuruFocus considers Frosta AG to be Significantly Overvalued.
Key valuation signals for HAM:NLM:
ROIC %: 14.55%
GF Value™: €73.41 vs. price of €97.80 (33.2% above fair value)
Industry Position: 183.6% above the Consumer Packaged Goods median
No single metric tells the full story. See the HAM:NLM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frosta AG is a Germany based frozen food manufacturing company. The company produces and markets frozen foods which include vegetables, fruits, herbs, fish, and meals. The company has two separate sales units namely, the FRoSTA operating segment, which includes the brand business, the private label business and sales to home delivery services and catering business. The second unit is COPACK operating segment, which includes a private label and industrial business. It generates revenue from the operations of FRoSTA and COPACK segment. The company, through its subsidiaries, operates its business segments in Germany, and internationally.
79GF Score
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