ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Insignia Financial's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 6.42%.
As of today (2026-06-26), Insignia Financial's WACC % is 9.31%. Insignia Financial's ROIC % is 5.90% (calculated using TTM income statement data).
Insignia Financial earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Insignia Financial's WACC % is 9.31%. Insignia Financial's ROIC % is 5.90% (calculated using TTM income statement data).
Insignia Financial 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.
Insignia Financial ROIC % Related Terms
Insignia Financial ROIC % Historical Data
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The historical data trend for Insignia Financial'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 Asset Management subindustry, Insignia Financial'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.
Insignia Financial ROIC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Insignia Financial's ROIC % distribution charts can be found below:
* The bar in red indicates where Insignia Financial'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.
Insignia Financial (IOOFF) has a ROIC % of 6.42% 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 Insignia Financial and its competitors.
Is Insignia Financial's ROIC % too high?
Insignia Financial's current ROIC % is 6.42%. The Asset Management industry median ROIC % is 1.21. Insignia Financial's value of 6.42% is 430.6% above this industry median. Overall, Insignia Financial has a GF Score™ of 35/100, reflecting its overall financial health beyond just this single metric.
How does Insignia Financial's ROIC % compare to BLK and BX?
Insignia Financial's ROIC % of 6.42% can be compared against companies in the Asset Management industry. The industry median ROIC % is 1.21. Insignia Financial's value of 6.42% is 430.6% 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 an Asset Management company?
The median ROIC % among Asset Management companies is 1.21, based on 709 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. Insignia Financial's current ROIC % of 6.42% is 430.6% 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 Insignia Financial and its competitors. For the Asset Management industry, the median ROIC % is 1.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Insignia Financial's current ROIC % is 6.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Insignia Financial stock overvalued right now?
Insignia Financial (IOOFF) has a current ROIC % of 6.42%. The stock's GF Value™ is $0.58, compared to a current price of $1.30 — trading 124.1% above its estimated fair value. The current ROIC % is 6.42% and 430.6% above the Asset Management industry median of 1.21. Insignia Financial's overall GF Score™ is 35/100 with 9 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 Insignia Financial (IOOFF), the current ROIC % is 6.42% 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 Insignia Financial (IOOFF) Overvalued in 2026?
Based on GuruFocus' analysis, Insignia Financial stock appears to be overvalued.
The current stock price of $1.30 is trading 124.1% above its estimated GF Value™ of $0.58.
Key valuation signals for IOOFF:
ROIC %: 6.42%
GF Value™: $0.58 vs. price of $1.30 (124.1% above fair value)
Industry Position: 430.6% above the Asset Management median
No single metric tells the full story. See the IOOFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Insignia Financial (formerly IOOF) provides wealth-management advice and products via a multibranded strategy, and a vertically integrated business model. Insignia's advice business provides financial planning services to both the mass affluent and high-net-worth clients. It also services non-Insignia advisors, providing compliance and other administrative services. Furthermore, Insignia offers platform products, which generates fees mainly from superannuation and non-superannuation investments accessed via its own platforms. It also derives revenue via some third-party platforms sourced from its aligned advisors. Lastly, the firm has an investment management segment.
35GF Score
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