ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. EKF Diagnostics Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 1.35%.
As of today (2026-07-02), EKF Diagnostics Holdings's WACC % is 7.50%. EKF Diagnostics Holdings's ROIC % is 3.89% (calculated using TTM income statement data).
EKF Diagnostics Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, EKF Diagnostics Holdings's WACC % is 7.50%. EKF Diagnostics Holdings's ROIC % is 3.89% (calculated using TTM income statement data).
EKF Diagnostics 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.
* 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 Medical Devices subindustry, EKF Diagnostics 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.
EKF Diagnostics Holdings ROIC % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, EKF Diagnostics Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where EKF Diagnostics Holdings's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 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.
EKF Diagnostics Holdings (LSE:EKF) has a ROIC % of 1.35% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on EKF Diagnostics Holdings and its competitors.
Is EKF Diagnostics Holdings' ROIC % too high?
EKF Diagnostics Holdings' current ROIC % is 1.35%. The Medical Devices & Instruments industry median ROIC % is 1.25. EKF Diagnostics Holdings' value of 1.35% is 8% above this industry median. Overall, EKF Diagnostics Holdings has a GF Score™ of 52/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does EKF Diagnostics Holdings' ROIC % compare to ABT and SYK?
EKF Diagnostics Holdings' ROIC % of 1.35% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROIC % is 1.25. EKF Diagnostics Holdings' value of 1.35% is 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 Medical Devices & Instruments company?
The median ROIC % among Medical Devices & Instruments companies is 1.25, based on 847 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. EKF Diagnostics Holdings's current ROIC % of 1.35% is 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 EKF Diagnostics Holdings and its competitors. For the Medical Devices & Instruments industry, the median ROIC % is 1.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EKF Diagnostics Holdings's current ROIC % is 1.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EKF Diagnostics Holdings stock overvalued right now?
Based on GuruFocus' analysis, EKF Diagnostics Holdings (LSE:EKF) is currently considered Fairly Valued. The stock's GF Value™ is £0.28, compared to a current price of £0.26 — trading 7.1% below its estimated fair value. The current ROIC % is 1.35% and 8% above the Medical Devices & Instruments industry median of 1.25. EKF Diagnostics Holdings' overall GF Score™ is 52/100 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 EKF Diagnostics Holdings (LSE:EKF), the current ROIC % is 1.35% as of Dec. 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 EKF Diagnostics Holdings (LSE:EKF) Overvalued in 2026?
Based on GuruFocus' analysis, EKF Diagnostics Holdings stock appears to be undervalued.
The current stock price of £0.26 is trading 7.1% below its estimated GF Value™ of £0.28.
GuruFocus considers EKF Diagnostics Holdings to be Fairly Valued.
Key valuation signals for LSE:EKF:
ROIC %: 1.35%
GF Value™: £0.28 vs. price of £0.26 (7.1% below fair value)
Industry Position: 8% above the Medical Devices & Instruments median
No single metric tells the full story. See the LSE:EKF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EKF Diagnostics Holdings PLC is engaged in development, manufacture and supply of products and services into the in-vitro diagnostic (IVD) market place. The Group has presence in the UK, USA, Germany, and Russia, and sells throughout the world including Europe, the Middle East, the Americas, Asia, and Africa. It derive their revenue from the manufacture and sale of medical diagnostic equipment and reagents. Other services include the servicing and distribution of third party company products under separate distribution agreements.
52GF Score
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