ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. RTC Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 23.57%.
As of today (2026-06-28), RTC Group's WACC % is 11.34%. RTC Group's ROIC % is 19.31% (calculated using TTM income statement data).
RTC Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
RTC Group (LSE:RTC) 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, RTC Group's WACC % is 11.34%. RTC Group's ROIC % is 19.31% (calculated using TTM income statement data).
RTC Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
RTC Group ROIC % Related Terms
RTC Group ROIC % Historical Data
* Premium members only.
The historical data trend for RTC Group'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 Staffing & Employment Services subindustry, RTC Group'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.
RTC Group ROIC % vs Business Services Industry
For the Business Services industry and Industrials sector, RTC Group's ROIC % distribution charts can be found below:
* The bar in red indicates where RTC Group'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.
RTC Group (LSE:RTC) has a ROIC % of 23.57% 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 RTC Group and its competitors.
Is RTC Group's ROIC % too high?
RTC Group's current ROIC % is 23.57%. The Business Services industry median ROIC % is 5.93. RTC Group's value of 23.57% is 297.5% above this industry median. Overall, RTC Group has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does RTC Group's ROIC % compare to KFY and RHI?
RTC Group's ROIC % of 23.57% can be compared against companies in the Business Services industry. The industry median ROIC % is 5.93. RTC Group's value of 23.57% is 297.5% 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 Business Services company?
The median ROIC % among Business Services companies is 5.93, based on 1,075 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. RTC Group's current ROIC % of 23.57% is 297.5% 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 RTC Group and its competitors. For the Business Services industry, the median ROIC % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RTC Group's current ROIC % is 23.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RTC Group stock overvalued right now?
Based on GuruFocus' analysis, RTC Group (LSE:RTC) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.83, compared to a current price of £1.01 — trading 21.7% above its estimated fair value. The current ROIC % is 23.57% and 297.5% above the Business Services industry median of 5.93. RTC Group's overall GF Score™ is 61/100. 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 RTC Group (LSE:RTC), the current ROIC % is 23.57% 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 RTC Group (LSE:RTC) Overvalued in 2026?
Based on GuruFocus' analysis, RTC Group stock appears to be overvalued.
The current stock price of £1.01 is trading 21.7% above its estimated GF Value™ of £0.83.
GuruFocus considers RTC Group to be Modestly Overvalued.
Key valuation signals for LSE:RTC:
ROIC %: 23.57%
GF Value™: £0.83 vs. price of £1.01 (21.7% above fair value)
Industry Position: 297.5% above the Business Services median
No single metric tells the full story. See the LSE:RTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RTC Group PLC is a holding company. Along with its subsidiaries, it is engaged in the provision of engineering and technical recruitment services that provide temporary and permanent labor to a broad range of industries and customers in both domestic and international markets. It focuses on white and blue-collar recruitment, providing temporary, permanent, and contingent staff to a range of industries and clients in both domestic and international markets. The Group's operating segments include UK Recruitment, UK Central Services, and International Recruitment. The majority of its revenues are generated from the UK Recruitment segment. Geographically, the group derives maximum revenue from the United Kingdom, and the rest from the United States and the Middle East.
61GF Score
Get the complete analysis for LSE:RTC
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:RTC has been successfully added to your 
