ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. OptiBiotix Health's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -51.41%.
As of today (2026-07-02), OptiBiotix Health's WACC % is 12.16%. OptiBiotix Health's ROIC % is -44.21% (calculated using TTM income statement data).
OptiBiotix Health earns returns that do not match up to its cost of capital. It will destroy value as it grows.
OptiBiotix Health (LSE:OPTI) 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, OptiBiotix Health's WACC % is 12.16%. OptiBiotix Health's ROIC % is -44.21% (calculated using TTM income statement data).
OptiBiotix Health 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.
OptiBiotix Health ROIC % Related Terms
OptiBiotix Health ROIC % Historical Data
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The historical data trend for OptiBiotix Health'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 Biotechnology subindustry, OptiBiotix Health'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.
OptiBiotix Health ROIC % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, OptiBiotix Health's ROIC % distribution charts can be found below:
* The bar in red indicates where OptiBiotix Health'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.
OptiBiotix Health (LSE:OPTI) has a ROIC % of -51.41% 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 OptiBiotix Health and its competitors.
Is OptiBiotix Health's ROIC % too high?
OptiBiotix Health's current ROIC % is -51.41%.
How does OptiBiotix Health's ROIC % compare to VRTX and REGN?
OptiBiotix Health's ROIC % of -51.41% can be compared against companies in the Biotechnology industry. 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 Biotechnology company?
A good ROIC % depends on the Biotechnology industry context. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 OptiBiotix Health and its competitors. OptiBiotix Health's current ROIC % is -51.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is OptiBiotix Health stock overvalued right now?
Based on GuruFocus' analysis, OptiBiotix Health (LSE:OPTI) is currently considered Possible Value Trap. The stock's GF Value™ is £0.30, compared to a current price of £0.06 — trading 78.5% below its estimated fair value. The current ROIC % is -51.41%. 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 OptiBiotix Health (LSE:OPTI), the current ROIC % is -51.41% 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.
OptiBiotix Health PLC principal activity is that of identifying and developing microbial strains, compounds, and formulations for use in food ingredients, supplements and active compounds that can impact on human physiology, deriving potential health benefits. It is a life sciences business focused on the development of products which reduce hunger and food cravings, enhance the gut microbiome, and provide a healthy substitute for sugar. Its product portfolio includes First-generation products- SlimBiome, WellBiome; and Second-generation solutions- SweetBiotix, Microbiome Modulators. The group has one class of business. It has presence in United Kingdom, United States, India China, and Rest of world. The company generates majority of revenue from United States.
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