ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Hudson Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.54%.
As of today (2026-06-28), Hudson Technologies's WACC % is 4.75%. Hudson Technologies's ROIC % is 5.87% (calculated using TTM income statement data).
Hudson Technologies 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.
Hudson Technologies (NAS:HDSN) 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, Hudson Technologies's WACC % is 4.75%. Hudson Technologies's ROIC % is 5.87% (calculated using TTM income statement data).
Hudson Technologies 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.
Hudson Technologies ROIC % Related Terms
Hudson Technologies ROIC % Historical Data
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The historical data trend for Hudson Technologies'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 Specialty Chemicals subindustry, Hudson Technologies'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.
Hudson Technologies ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Hudson Technologies's ROIC % distribution charts can be found below:
* The bar in red indicates where Hudson Technologies'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.
Hudson Technologies (HDSN) has a ROIC % of 0.54% 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 Hudson Technologies and its competitors.
Is Hudson Technologies' ROIC % too high?
Hudson Technologies' current ROIC % is 0.54%. The Chemicals industry median ROIC % is 4.46. Hudson Technologies' value of 0.54% is 87.9% below this industry median. Overall, Hudson Technologies has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hudson Technologies' ROIC % compare to CMT and MNTK?
Hudson Technologies' ROIC % of 0.54% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.46. Hudson Technologies' value of 0.54% is 87.9% 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.46, based on 1,581 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. Hudson Technologies's current ROIC % of 0.54% is 87.9% 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 Hudson Technologies and its competitors. For the Chemicals industry, the median ROIC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hudson Technologies's current ROIC % is 0.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hudson Technologies stock overvalued right now?
Based on GuruFocus' analysis, Hudson Technologies (HDSN) is currently considered Significantly Undervalued. The stock's GF Value™ is $8.49, compared to a current price of $5.56 — trading 34.5% below its estimated fair value. The current ROIC % is 0.54% and 87.9% below the Chemicals industry median of 4.46. Hudson Technologies' overall GF Score™ is 57/100 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 Hudson Technologies (HDSN), the current ROIC % is 0.54% 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 Hudson Technologies (HDSN) Overvalued in 2026?
Based on GuruFocus' analysis, Hudson Technologies stock appears to be undervalued.
The current stock price of $5.56 is trading 34.5% below its estimated GF Value™ of $8.49.
GuruFocus considers Hudson Technologies to be Significantly Undervalued.
Key valuation signals for HDSN:
ROIC %: 0.54%
GF Value™: $8.49 vs. price of $5.56 (34.5% below fair value)
Industry Position: 87.9% below the Chemicals median
No single metric tells the full story. See the HDSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hudson Technologies Inc is a refrigerant services company providing solutions to recurring challenges within the refrigeration industry. The company delivers environmentally sustainable offerings, covering the sale of refrigerant gases, recovery, reclamation, and reuse, as well as improving equipment performance through energy efficiency services, emergency air conditioning and refrigeration system repairs, refrigerant disposal, and carbon credit trading. It operates through one reportable segment. Its products and services are used in commercial air conditioning, industrial processing, and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services (mainly reclamation of refrigerants), and RefrigerantSide services performed at customer sites.
57GF Score
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