ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Atlas Battery's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.58%.
As of today (2026-07-13), Atlas Battery's WACC % is 6.70%. Atlas Battery's ROIC % is 2.46% (calculated using TTM income statement data).
Atlas Battery earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Atlas Battery (KAR:ATBA) 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, Atlas Battery's WACC % is 6.70%. Atlas Battery's ROIC % is 2.46% (calculated using TTM income statement data).
Atlas Battery 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.
Atlas Battery ROIC % Related Terms
Atlas Battery ROIC % Historical Data
* Premium members only.
The historical data trend for Atlas Battery'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 Auto Parts subindustry, Atlas Battery'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.
Atlas Battery ROIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Atlas Battery's ROIC % distribution charts can be found below:
* The bar in red indicates where Atlas Battery'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.
Atlas Battery (KAR:ATBA) has a ROIC % of 4.58% 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 Atlas Battery and its competitors.
Is Atlas Battery's ROIC % too high?
Atlas Battery's current ROIC % is 4.58%. The Vehicles & Parts industry median ROIC % is 5.05. Atlas Battery's value of 4.58% is 9.3% below this industry median. Overall, Atlas Battery has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Atlas Battery's ROIC % compare to ORLY and AZO?
Atlas Battery's ROIC % of 4.58% can be compared against companies in the Vehicles & Parts industry. The industry median ROIC % is 5.05. Atlas Battery's value of 4.58% is 9.3% 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 a Vehicles & Parts company?
The median ROIC % among Vehicles & Parts companies is 5.05, based on 1,310 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. Atlas Battery's current ROIC % of 4.58% is 9.3% 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 Atlas Battery and its competitors. For the Vehicles & Parts industry, the median ROIC % is 5.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Atlas Battery's current ROIC % is 4.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Atlas Battery stock overvalued right now?
Based on GuruFocus' analysis, Atlas Battery (KAR:ATBA) is currently considered Modestly Undervalued. The stock's GF Value™ is ₨248.85, compared to a current price of ₨216.46 — trading 13% below its estimated fair value. The current ROIC % is 4.58% and 9.3% below the Vehicles & Parts industry median of 5.05. Atlas Battery's overall GF Score™ is 69/100 with 5 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 Atlas Battery (KAR:ATBA), the current ROIC % is 4.58% 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 Atlas Battery (KAR:ATBA) Overvalued in 2026?
Based on GuruFocus' analysis, Atlas Battery stock appears to be undervalued.
The current stock price of ₨216.46 is trading 13% below its estimated GF Value™ of ₨248.85.
GuruFocus considers Atlas Battery to be Modestly Undervalued.
Key valuation signals for KAR:ATBA:
ROIC %: 4.58%
GF Value™: ₨248.85 vs. price of ₨216.46 (13% below fair value)
Industry Position: 9.3% below the Vehicles & Parts median
No single metric tells the full story. See the KAR:ATBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Atlas Battery Ltd is engaged in the manufacturing and sale of automotive, motorcycle and energy storage batteries and their allied products. Its products are mainly categorized in light, medium and heavy batteries for automotive, motorcycle batteries, energy storage batteries and distilled water. The company serves various segments including Original Equipment Manufacturers (OEMs), domestic appliances, industrial equipment and replacement market through nationwide dealership network. The usage of batteries includes vehicles, motorcycles, heavy vehicles including tractors, buses and energy backup solution such as UPS (Uninterrupted Power Supply equipment), Solar Panels and Gensets.
69GF Score
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