ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kongsberg Gruppen ASA's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 6.67%.
As of today (2026-06-25), Kongsberg Gruppen ASA's WACC % is 12.44%. Kongsberg Gruppen ASA's ROIC % is 8.13% (calculated using TTM income statement data).
Kongsberg Gruppen ASA earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Kongsberg Gruppen ASA (OTCPK:KBGGY) 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, Kongsberg Gruppen ASA's WACC % is 12.44%. Kongsberg Gruppen ASA's ROIC % is 8.13% (calculated using TTM income statement data).
Kongsberg Gruppen ASA 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.
* 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 Aerospace & Defense subindustry, Kongsberg Gruppen ASA'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.
Kongsberg Gruppen ASA ROIC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Kongsberg Gruppen ASA's ROIC % distribution charts can be found below:
* The bar in red indicates where Kongsberg Gruppen ASA'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.
Kongsberg Gruppen ASA (KBGGY) has a ROIC % of 6.67% 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 Kongsberg Gruppen ASA and its competitors.
Is Kongsberg Gruppen ASA's ROIC % too high?
Kongsberg Gruppen ASA's current ROIC % is 6.67%. The Aerospace & Defense industry median ROIC % is 4.45. Kongsberg Gruppen ASA's value of 6.67% is 49.9% above this industry median. Overall, Kongsberg Gruppen ASA has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kongsberg Gruppen ASA's ROIC % compare to GE and RTX?
Kongsberg Gruppen ASA's ROIC % of 6.67% can be compared against companies in the Aerospace & Defense industry. The industry median ROIC % is 4.45. Kongsberg Gruppen ASA's value of 6.67% is 49.9% 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 an Aerospace & Defense company?
The median ROIC % among Aerospace & Defense companies is 4.45, based on 351 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. Kongsberg Gruppen ASA's current ROIC % of 6.67% is 49.9% 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 Kongsberg Gruppen ASA and its competitors. For the Aerospace & Defense industry, the median ROIC % is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kongsberg Gruppen ASA's current ROIC % is 6.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kongsberg Gruppen ASA stock overvalued right now?
Based on GuruFocus' analysis, Kongsberg Gruppen ASA (KBGGY) is currently considered Modestly Overvalued. The stock's GF Value™ is $12.66, compared to a current price of $14.51 — trading 14.6% above its estimated fair value. The current ROIC % is 6.67% and 49.9% above the Aerospace & Defense industry median of 4.45. Kongsberg Gruppen ASA's overall GF Score™ is 87/100 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 Kongsberg Gruppen ASA (KBGGY), the current ROIC % is 6.67% 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 Kongsberg Gruppen ASA (KBGGY) Overvalued in 2026?
Based on GuruFocus' analysis, Kongsberg Gruppen ASA stock appears to be overvalued.
The current stock price of $14.51 is trading 14.6% above its estimated GF Value™ of $12.66.
GuruFocus considers Kongsberg Gruppen ASA to be Modestly Overvalued.
Key valuation signals for KBGGY:
ROIC %: 6.67%
GF Value™: $12.66 vs. price of $14.51 (14.6% above fair value)
Industry Position: 49.9% above the Aerospace & Defense median
No single metric tells the full story. See the KBGGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kongsberg Gruppen is an international technology company focused on defense, aerospace, and advanced sensing and surveillance solutions following the spinoff of its maritime business. The group's activities are centered on Kongsberg Defence & Aerospace and Kongsberg Discovery, providing defense systems, missiles, air defense, and subsea and monitoring technologies.
87GF Score
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