ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Jefferson Capital's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 7.68%.
As of today (2026-06-26), Jefferson Capital's WACC % is 4.75%. Jefferson Capital's ROIC % is 9.02% (calculated using TTM income statement data).
Jefferson Capital 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.
Jefferson Capital (NAS:JCAP) 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, Jefferson Capital's WACC % is 4.75%. Jefferson Capital's ROIC % is 9.02% (calculated using TTM income statement data).
Jefferson Capital 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.
Jefferson Capital ROIC % Related Terms
Jefferson Capital ROIC % Historical Data
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The historical data trend for Jefferson Capital'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 Credit Services subindustry, Jefferson Capital'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.
Jefferson Capital ROIC % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Jefferson Capital's ROIC % distribution charts can be found below:
* The bar in red indicates where Jefferson Capital'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.
Jefferson Capital (JCAP) has a ROIC % of 7.68% 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 Jefferson Capital and its competitors.
Is Jefferson Capital's ROIC % too high?
Jefferson Capital's current ROIC % is 7.68%. The Credit Services industry median ROIC % is 1.98. Jefferson Capital's value of 7.68% is 287.9% above this industry median. Overall, Jefferson Capital has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Jefferson Capital's ROIC % compare to NAVI and WRLD?
Jefferson Capital's ROIC % of 7.68% can be compared against companies in the Credit Services industry. The industry median ROIC % is 1.98. Jefferson Capital's value of 7.68% is 287.9% 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 a Credit Services company?
The median ROIC % among Credit Services companies is 1.98, based on 417 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. Jefferson Capital's current ROIC % of 7.68% is 287.9% 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 Jefferson Capital and its competitors. For the Credit Services industry, the median ROIC % is 1.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jefferson Capital's current ROIC % is 7.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jefferson Capital stock overvalued right now?
Jefferson Capital (JCAP) has a current ROIC % of 7.68%. The current ROIC % is 7.68% and 287.9% above the Credit Services industry median of 1.98. Jefferson Capital's overall GF Score™ is 17/100 with 2 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 Jefferson Capital (JCAP), the current ROIC % is 7.68% 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.
Jefferson Capital Inc and its subsidiaries operate in the United States, Canada, the United Kingdom, and Latin America, providing debt recovery solutions across a broad range of consumer receivables, including credit card, automotive, utilities, telecom, and other accounts. The Company mainly purchases portfolios of consumer receivables from independent third parties at deep discounts to face value and manages these portfolios by working with individuals as obligations are repaid and financial recovery is achieved, including accounts subject to bankruptcy proceedings. In addition, the Company provides debt servicing and portfolio management services to credit originators for non-performing loans and generates revenue through credit card acquisition programs.
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