ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Hudaco Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Nov. 2025 was 17.40%.
As of today (2026-07-01), Hudaco Industries's WACC % is 9.86%. Hudaco Industries's ROIC % is 15.17% (calculated using TTM income statement data).
Hudaco Industries 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.
Hudaco Industries (JSE:HDC) 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, Hudaco Industries's WACC % is 9.86%. Hudaco Industries's ROIC % is 15.17% (calculated using TTM income statement data).
Hudaco Industries 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.
Hudaco Industries ROIC % Related Terms
Hudaco Industries ROIC % Historical Data
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The historical data trend for Hudaco Industries'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 Industrial Distribution subindustry, Hudaco Industries'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.
Hudaco Industries ROIC % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Hudaco Industries's ROIC % distribution charts can be found below:
* The bar in red indicates where Hudaco Industries's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Nov. 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.
Hudaco Industries (JSE:HDC) has a ROIC % of 17.40% as of Nov. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Hudaco Industries and its competitors.
Is Hudaco Industries' ROIC % too high?
Hudaco Industries' current ROIC % is 17.40%. The Industrial Distribution industry median ROIC % is 6.21. Hudaco Industries' value of 17.40% is 180.2% above this industry median. Overall, Hudaco Industries has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hudaco Industries' ROIC % compare to GWW and FAST?
Hudaco Industries' ROIC % of 17.40% can be compared against companies in the Industrial Distribution industry. The industry median ROIC % is 6.21. Hudaco Industries' value of 17.40% is 180.2% 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 Industrial Distribution company?
The median ROIC % among Industrial Distribution companies is 6.21, based on 155 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. Hudaco Industries's current ROIC % of 17.40% is 180.2% 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 Hudaco Industries and its competitors. For the Industrial Distribution industry, the median ROIC % is 6.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hudaco Industries's current ROIC % is 17.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hudaco Industries stock overvalued right now?
Based on GuruFocus' analysis, Hudaco Industries (JSE:HDC) is currently considered Fairly Valued. The stock's GF Value™ is R189.33, compared to a current price of R193.00 — trading 1.9% above its estimated fair value. The current ROIC % is 17.40% and 180.2% above the Industrial Distribution industry median of 6.21. Hudaco Industries' overall GF Score™ is 89/100. 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 Hudaco Industries (JSE:HDC), the current ROIC % is 17.40% as of Nov. 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 Hudaco Industries (JSE:HDC) Overvalued in 2026?
Based on GuruFocus' analysis, Hudaco Industries stock appears to be overvalued.
The current stock price of R193.00 is trading 1.9% above its estimated GF Value™ of R189.33.
GuruFocus considers Hudaco Industries to be Fairly Valued.
Key valuation signals for JSE:HDC:
ROIC %: 17.40%
GF Value™: R189.33 vs. price of R193.00 (1.9% above fair value)
Industry Position: 180.2% above the Industrial Distribution median
No single metric tells the full story. See the JSE:HDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hudaco Industries Ltd is engaged in importing and distributing branded automotive, industrial and electrical consumable products. The company operates in two business segment such as Consumer-related product segment which includes power tools, security equipment, communication equipment, automotive and batteries, and Engineering consumables segment which consist of bearings, diesel engines and spares, and power transmission. It generates maximum revenue from Engineering consumables segment. Geographically, it derives a majority of revenue from South Africa.
89GF Score
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