ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. DWK Deutsche Wasserkraft AG's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was -9.44%.
As of today (2026-07-13), DWK Deutsche Wasserkraft AG's WACC % is 8.42%. DWK Deutsche Wasserkraft AG's ROIC % is -9.44% (calculated using TTM income statement data).
DWK Deutsche Wasserkraft AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
DWK Deutsche Wasserkraft AG (HAM:T7RA) 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, DWK Deutsche Wasserkraft AG's WACC % is 8.42%. DWK Deutsche Wasserkraft AG's ROIC % is -9.44% (calculated using TTM income statement data).
DWK Deutsche Wasserkraft AG 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.
DWK Deutsche Wasserkraft AG ROIC % Related Terms
DWK Deutsche Wasserkraft AG 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.
DWK Deutsche Wasserkraft AG ROIC % Competitor Comparison
For the Utilities - Renewable subindustry, DWK Deutsche Wasserkraft 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.
DWK Deutsche Wasserkraft AG ROIC % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, DWK Deutsche Wasserkraft AG's ROIC % distribution charts can be found below:
* The bar in red indicates where DWK Deutsche Wasserkraft AG's ROIC % falls into.
Note:
The Operating Income data used here is one times the annual (Dec. 2024) 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.
DWK Deutsche Wasserkraft AG (HAM:T7RA) has a ROIC % of -9.44% as of Dec. 2024. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on DWK Deutsche Wasserkraft AG and its competitors.
Is DWK Deutsche Wasserkraft AG's ROIC % too high?
DWK Deutsche Wasserkraft AG's current ROIC % is -9.44%. Overall, DWK Deutsche Wasserkraft AG has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does DWK Deutsche Wasserkraft AG's ROIC % compare to competitors?
DWK Deutsche Wasserkraft AG's ROIC % of -9.44% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROIC % is 2.28. 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 Utilities - Independent Power Producers company?
The median ROIC % among Utilities - Independent Power Producers companies is 2.28, based on 430 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. 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 DWK Deutsche Wasserkraft AG and its competitors. For the Utilities - Independent Power Producers industry, the median ROIC % is 2.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DWK Deutsche Wasserkraft AG's current ROIC % is -9.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DWK Deutsche Wasserkraft AG stock overvalued right now?
DWK Deutsche Wasserkraft AG (HAM:T7RA) has a current ROIC % of -9.44%. The current ROIC % is -9.44%. DWK Deutsche Wasserkraft AG's overall GF Score™ is 30/100 with 1 warning sign 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 DWK Deutsche Wasserkraft AG (HAM:T7RA), the current ROIC % is -9.44% as of Dec. 2024. 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.
DWK Deutsche Wasserkraft AG is a German energy company with roots in Norway and Germany. By building up its portfolio of hydroelectric power plants it creates sustainable added value for the environment and the common good. With hydropower, the company uses a stable and cost-efficient source of electricity generation that does not produce any CO2 emissions. The company develops, acquires and operates small run-of-river power plants and supports co-investors in the purchase, operation and possible sale.
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