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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Fair Oaksome's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2025 was 2.35%.
As of today (2026-09-21), Fair Oaksome's WACC % is 8.51%. Fair Oaksome's ROIC % is 0.00% (calculated using TTM income statement data).
Fair Oaksome 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, Fair Oaksome's WACC % is 8.51%. Fair Oaksome's ROIC % is 0.00% (calculated using TTM income statement data).
Fair Oaksome 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.
Fair Oaksome ROIC % Related Terms
Fair Oaksome ROIC % Historical Data
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The historical data trend for Fair Oaksome'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 Asset Management subindustry, Fair Oaksome'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.
Fair Oaksome ROIC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Fair Oaksome's ROIC % distribution charts can be found below:
* The bar in red indicates where Fair Oaksome's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Jun. 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.
Fair Oaksome (LSE:FAIR) has a ROIC % of 2.35% as of Jun. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Fair Oaksome and its competitors.
Is Fair Oaksome's ROIC % too high?
Fair Oaksome's current ROIC % is 2.35%. The Asset Management industry median ROIC % is 1.78. Fair Oaksome's value of 2.35% is 32% above this industry median. Overall, Fair Oaksome has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does Fair Oaksome's ROIC % compare to BLK and BX?
Fair Oaksome's ROIC % of 2.35% can be compared against companies in the Asset Management industry. The industry median ROIC % is 1.78. Fair Oaksome's value of 2.35% is 32% 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 Asset Management company?
The median ROIC % among Asset Management companies is 1.78, based on 701 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. Fair Oaksome's current ROIC % of 2.35% is 32% 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 Fair Oaksome and its competitors. For the Asset Management industry, the median ROIC % is 1.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fair Oaksome's current ROIC % is 2.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fair Oaksome stock overvalued right now?
Fair Oaksome (LSE:FAIR) has a current ROIC % of 2.35%. The current ROIC % is 2.35% and 32% above the Asset Management industry median of 1.78. Fair Oaksome's overall GF Score™ is 25/100 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 Fair Oaksome (LSE:FAIR), the current ROIC % is 2.35% as of Jun. 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.
Fair Oaks Income Ltd is a closed-ended fund. The investment objective of the company is to generate attractive, risk-adjusted returns, principally through income distributions. The company invests (either directly and/or indirectly through the Master Fund and/ or Master Fund II) in U.S and European Collateralised Loan Obligations (CLOs) or other vehicles and structures which provide exposure to portfolios consisting of the U.S and European floating-rate senior secured loans and which may include non-recourse financing. If the Company holds any uninvested cash, it may also invest temporarily in the Short Term Investments.
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