Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. ABO Kraft & Warme AG's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was -9.65%.
As of today (2026-07-21), ABO Kraft & Warme AG's WACC % is 7.45%. ABO Kraft & Warme AG's ROIC % is -9.65% (calculated using TTM income statement data).
ABO Kraft & Warme AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ABO Kraft & Warme AG (HAM:XX1) 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, ABO Kraft & Warme AG's WACC % is 7.45%. ABO Kraft & Warme AG's ROIC % is -9.65% (calculated using TTM income statement data).
ABO Kraft & Warme 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.
* 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 Utilities - Diversified subindustry, ABO Kraft & Warme 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.
ABO Kraft & Warme AG ROIC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, ABO Kraft & Warme AG's ROIC % distribution charts can be found below:
* The bar in red indicates where ABO Kraft & Warme 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.
ABO Kraft & Warme AG (HAM:XX1) has a ROIC % of -9.65% 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 ABO Kraft & Warme AG and its competitors.
Is ABO Kraft & Warme AG's ROIC % too high?
ABO Kraft & Warme AG's current ROIC % is -9.65%. Overall, ABO Kraft & Warme AG has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does ABO Kraft & Warme AG's ROIC % compare to SRE and AES?
ABO Kraft & Warme AG's ROIC % of -9.65% can be compared against companies in the Utilities - Regulated industry. The industry median ROIC % is 4.16. 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 - Regulated company?
The median ROIC % among Utilities - Regulated companies is 4.16, based on 502 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 ABO Kraft & Warme AG and its competitors. For the Utilities - Regulated industry, the median ROIC % is 4.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ABO Kraft & Warme AG's current ROIC % is -9.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ABO Kraft & Warme AG stock overvalued right now?
ABO Kraft & Warme AG (HAM:XX1) has a current ROIC % of -9.65%. The current ROIC % is -9.65%. ABO Kraft & Warme AG's overall GF Score™ is 39/100 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 ABO Kraft & Warme AG (HAM:XX1), the current ROIC % is -9.65% 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.
ABO Kraft & Warme AG operates biogas plants and recycles organic waste. It initiates, acquires, plans, finance operate, and manages power and heat-generating systems also it generates biogas from organic waste and produces biogas from energy crops and manure. The company also supplies larger properties (office complexes, schools, etc.) with electricity and heat as a contractor. Its portfolio includes the Ettinghausen waste fermentation plant, Zülpich waste fermentation plant, Biogas plant Hammelbüsch, Hilscheid biogas plant, Ramstein biogas plant, and Energy contracting.
39GF Score
Get the complete analysis for HAM:XX1
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
HAM:XX1 has been successfully added to your 
