ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Adcorp Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Feb. 2026 was 10.07%.
As of today (2026-06-29), Adcorp Holdings's WACC % is 11.16%. Adcorp Holdings's ROIC % is 7.47% (calculated using TTM income statement data).
Adcorp Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Adcorp Holdings (JSE:ADR) 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, Adcorp Holdings's WACC % is 11.16%. Adcorp Holdings's ROIC % is 7.47% (calculated using TTM income statement data).
Adcorp Holdings 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.
Adcorp Holdings ROIC % Related Terms
Adcorp Holdings ROIC % Historical Data
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The historical data trend for Adcorp Holdings'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 Staffing & Employment Services subindustry, Adcorp Holdings'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.
Adcorp Holdings ROIC % vs Business Services Industry
For the Business Services industry and Industrials sector, Adcorp Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Adcorp Holdings's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Feb. 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.
Adcorp Holdings (JSE:ADR) has a ROIC % of 10.07% as of Feb. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Adcorp Holdings and its competitors.
Is Adcorp Holdings' ROIC % too high?
Adcorp Holdings' current ROIC % is 10.07%. The Business Services industry median ROIC % is 5.93. Adcorp Holdings' value of 10.07% is 69.8% above this industry median. Overall, Adcorp Holdings has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Adcorp Holdings' ROIC % compare to KFY and RHI?
Adcorp Holdings' ROIC % of 10.07% can be compared against companies in the Business Services industry. The industry median ROIC % is 5.93. Adcorp Holdings' value of 10.07% is 69.8% 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 Business Services company?
The median ROIC % among Business Services companies is 5.93, based on 1,075 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. Adcorp Holdings's current ROIC % of 10.07% is 69.8% 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 Adcorp Holdings and its competitors. For the Business Services industry, the median ROIC % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adcorp Holdings's current ROIC % is 10.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adcorp Holdings stock overvalued right now?
Based on GuruFocus' analysis, Adcorp Holdings (JSE:ADR) is currently considered Significantly Overvalued. The stock's GF Value™ is R4.60, compared to a current price of R6.25 — trading 35.9% above its estimated fair value. The current ROIC % is 10.07% and 69.8% above the Business Services industry median of 5.93. Adcorp Holdings' overall GF Score™ is 58/100 with 3 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 Adcorp Holdings (JSE:ADR), the current ROIC % is 10.07% as of Feb. 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 Adcorp Holdings (JSE:ADR) Overvalued in 2026?
Based on GuruFocus' analysis, Adcorp Holdings stock appears to be overvalued.
The current stock price of R6.25 is trading 35.9% above its estimated GF Value™ of R4.60.
GuruFocus considers Adcorp Holdings to be Significantly Overvalued.
Key valuation signals for JSE:ADR:
ROIC %: 10.07%
GF Value™: R4.60 vs. price of R6.25 (35.9% above fair value)
Industry Position: 69.8% above the Business Services median
No single metric tells the full story. See the JSE:ADR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adcorp Holdings Ltd is engaged in providing workplace solutions. The company renders services in the fields of permanent recruitment and flexible staffing sectors, professional IT services, as well as the provision of business process outsourcing, training, and financial services. Its operating segments are Contingent staffing, Professional Services, Business support. and Contingent staffing Australia. The geographical segments are South Africa and International.
58GF Score
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