Premier Group (JSE:PMR) ROIC %: 12.81% (As of Mar. 2026)


JSE:PMR Premier Group Ltd JSE:PMR
61 GF Score
Price R194.37
GF Value R143.97
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Premier Group ROIC %?

Premier Group JSE:PMR -0.32% 61 ROIC % is 12.81% as of Mar. 2026. GuruFocus rates JSE:PMR with a GF Score™ of 61/100 and a GF Value™ of R143.97 (Significantly Overvalued). The stock has 4 warning signs investors should review.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Premier Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 12.81%.

As of today (2026-06-30), Premier Group's WACC % is 11.01%. Premier Group's ROIC % is 13.70% (calculated using TTM income statement data). Premier Group 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.

Premier Group  (JSE:PMR) 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, Premier Group's WACC % is 11.01%. Premier Group's ROIC % is 13.70% (calculated using TTM income statement data). Premier Group 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.

Premier Group ROIC % Related Terms

Premier Group ROIC % Historical Data

* Premium members only.

The historical data trend for Premier Group'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.

Premier Group ROIC % Chart

Premier Group Annual Data
Trend Mar23 Mar24 Mar25 Mar26
ROIC %
11.46 14.17 16.13 12.32

Premier Group Semi-Annual Data
Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
ROIC % Get a 7-Day Free Trial 14.75 15.85 16.02 17.03 12.81

JSE:PMR vs KR, SFM: ROIC % Comparison

For the Grocery Stores subindustry, Premier Group'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.

Premier Group ROIC % vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Premier Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Premier Group's ROIC % falls into.


JSE:PMR
61GF Score
Premier Group Ltd JSE:PMR
ROIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Premier Group ROIC % Calculation

Premier Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2026 is calculated as:

ROIC % (A: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2025 ) + Invested Capital (A: Mar. 2026 ))/ count )
=2331.521 * ( 1 - 27.25% )/( (9269.343 + 18272.268)/ 2 )
=1696.1815275/13770.8055
=12.32 %

where

Invested Capital(A: Mar. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=11466.937 - 1730.45 - ( 467.144 - max(0, 3542.627 - 4777.904+467.144))
=9269.343

Invested Capital(A: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=22052.653 - 3107.571 - ( 672.814 - max(0, 6514.669 - 8696.883+672.814))
=18272.268

Premier Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2026 is calculated as:

ROIC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=2452.832 * ( 1 - 27.21% )/( (9596.171 + 18272.268)/ 2 )
=1785.4164128/13934.2195
=12.81 %

where

Invested Capital(Q: Sep. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=11794.44 - 1809.958 - ( 388.311 - max(0, 3555.111 - 4802.726+388.311))
=9596.171

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=22052.653 - 3107.571 - ( 672.814 - max(0, 6514.669 - 8696.883+672.814))
=18272.268

Note: The Operating Income data used here is two times the semi-annual (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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of 12.81% mean?
Premier Group (JSE:PMR) has a ROIC % of 12.81% 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 Premier Group and its competitors.
Is Premier Group's ROIC % too high?
Premier Group's current ROIC % is 12.81%. The Retail - Defensive industry median ROIC % is 5.71. Premier Group's value of 12.81% is 124.3% above this industry median. Overall, Premier Group has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Premier Group's ROIC % compare to KR and SFM?
Premier Group's ROIC % of 12.81% can be compared against companies in the Retail - Defensive industry. The industry median ROIC % is 5.71. Premier Group's value of 12.81% is 124.3% 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 Retail - Defensive company?
The median ROIC % among Retail - Defensive companies is 5.71, based on 307 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. Premier Group's current ROIC % of 12.81% is 124.3% 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 Premier Group and its competitors. For the Retail - Defensive industry, the median ROIC % is 5.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Premier Group's current ROIC % is 12.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Premier Group stock overvalued right now?
Based on GuruFocus' analysis, Premier Group (JSE:PMR) is currently considered Significantly Overvalued. The stock's GF Value™ is R143.97, compared to a current price of R194.37 — trading 35% above its estimated fair value. The current ROIC % is 12.81% and 124.3% above the Retail - Defensive industry median of 5.71. Premier Group's overall GF Score™ is 61/100 with 4 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 Premier Group (JSE:PMR), the current ROIC % is 12.81% 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.

Is Premier Group (JSE:PMR) Overvalued in 2026?

Based on GuruFocus' analysis, Premier Group stock appears to be overvalued. The current stock price of R194.37 is trading 35% above its estimated GF Value™ of R143.97. GuruFocus considers Premier Group to be Significantly Overvalued.

Key valuation signals for JSE:PMR:

  • ROIC %: 12.81%
  • GF Value™: R143.97 vs. price of R194.37 (35% above fair value)
  • GF Score™: 61/100 with 4 warning signs
  • Industry Position: 124.3% above the Retail - Defensive median

No single metric tells the full story. See the JSE:PMR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Premier Group Business Description

Address Maxwell Office Park, Building 5, Magwa Crescent West, Isando, ZAF, 1600
Premier Group Ltd is engaged in the manufacturing and distribution of staple milling and baking products, confectionery and home and personal care (HPC) products. The company is organized into two segments Millbake and Groceries and International. It derives maximum revenue from Millbake segment.
61GF Score

Get the complete analysis for JSE:PMR

ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R194.37
Price
R143.97
GF Value