ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Erbosan Erciyas Borunayii ve Ticaret AS's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2025 was 3.67%.
Erbosan Erciyas Borunayii ve Ticaret AS (IST:ERBOS) 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, Erbosan Erciyas Borunayii ve Ticaret AS's WACC % is 0.00%. Erbosan Erciyas Borunayii ve Ticaret AS's ROIC % is 0.00% (calculated using TTM income statement data).
Erbosan Erciyas Borunayii ve Ticaret AS 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.
Erbosan Erciyas Borunayii ve Ticaret AS ROIC % Related Terms
Erbosan Erciyas Borunayii ve Ticaret AS 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.
Erbosan Erciyas Borunayii ve Ticaret AS ROIC % Chart
Erbosan Erciyas Borunayii ve Ticaret AS Annual Data
For the Metal Fabrication subindustry, Erbosan Erciyas Borunayii ve Ticaret AS'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.
Erbosan Erciyas Borunayii ve Ticaret AS ROIC % vs Industrial Products Industry
Note:
The Operating Income data used here is four times the quarterly (Mar. 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.
Erbosan Erciyas Borunayii ve Ticaret AS (IST:ERBOS) has a ROIC % of 3.67% as of Mar. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Erbosan Erciyas Borunayii ve Ticaret AS and its competitors.
Is Erbosan Erciyas Borunayii ve Ticaret AS's ROIC % too high?
Erbosan Erciyas Borunayii ve Ticaret AS's current ROIC % is 3.67%. The Industrial Products industry median ROIC % is 5.23. Erbosan Erciyas Borunayii ve Ticaret AS's value of 3.67% is 29.8% below this industry median. Overall, Erbosan Erciyas Borunayii ve Ticaret AS has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Erbosan Erciyas Borunayii ve Ticaret AS's ROIC % compare to ATI and CRS?
Erbosan Erciyas Borunayii ve Ticaret AS's ROIC % of 3.67% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.23. Erbosan Erciyas Borunayii ve Ticaret AS's value of 3.67% is 29.8% 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 an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.23, based on 3,040 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. Erbosan Erciyas Borunayii ve Ticaret AS's current ROIC % of 3.67% is 29.8% 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 Erbosan Erciyas Borunayii ve Ticaret AS and its competitors. For the Industrial Products industry, the median ROIC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Erbosan Erciyas Borunayii ve Ticaret AS's current ROIC % is 3.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Erbosan Erciyas Borunayii ve Ticaret AS stock overvalued right now?
Erbosan Erciyas Borunayii ve Ticaret AS (IST:ERBOS) has a current ROIC % of 3.67%. The current ROIC % is 3.67% and 29.8% below the Industrial Products industry median of 5.23. Erbosan Erciyas Borunayii ve Ticaret AS's overall GF Score™ is 80/100. 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 Erbosan Erciyas Borunayii ve Ticaret AS (IST:ERBOS), the current ROIC % is 3.67% as of Mar. 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.
Erbosan Erciyas Borunayii ve Ticaret AS Business Description
Erbosan Erciyas Boru Sanayii ve Ticaret AS is a Turkey-based company engaged mainly in the business of manufacturing pipes. The product portfolio of the company includes Black Pipes, Galvanized Pipes, Hollow Sections, Gas and Line Pipes, Industrial Tubes and Sprinkler Pipes.
80GF Score
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