ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Crimson Tide's annualized return on invested capital (ROIC %) for the quarter that ended in Oct. 2025 was 13.53%.
As of today (2026-06-26), Crimson Tide's WACC % is 7.74%. Crimson Tide's ROIC % is -13.05% (calculated using TTM income statement data).
Crimson Tide earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Crimson Tide (LSE:TIDE) 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, Crimson Tide's WACC % is 7.74%. Crimson Tide's ROIC % is -13.05% (calculated using TTM income statement data).
Crimson Tide 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.
Crimson Tide ROIC % Related Terms
Crimson Tide ROIC % Historical Data
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The historical data trend for Crimson Tide'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 Software - Application subindustry, Crimson Tide'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.
Crimson Tide ROIC % vs Software Industry
For the Software industry and Technology sector, Crimson Tide's ROIC % distribution charts can be found below:
* The bar in red indicates where Crimson Tide's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Oct. 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.
Crimson Tide (LSE:TIDE) has a ROIC % of 13.53% as of Oct. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Crimson Tide and its competitors.
Is Crimson Tide's ROIC % too high?
Crimson Tide's current ROIC % is 13.53%. The Software industry median ROIC % is 3.11. Crimson Tide's value of 13.53% is 335.7% above this industry median. Overall, Crimson Tide has a GF Score™ of 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Crimson Tide's ROIC % compare to CRM and SHOP?
Crimson Tide's ROIC % of 13.53% can be compared against companies in the Software industry. The industry median ROIC % is 3.11. Crimson Tide's value of 13.53% is 335.7% 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 Software company?
The median ROIC % among Software companies is 3.11, based on 2,830 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. Crimson Tide's current ROIC % of 13.53% is 335.7% 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 Crimson Tide and its competitors. For the Software industry, the median ROIC % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Crimson Tide's current ROIC % is 13.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Crimson Tide stock overvalued right now?
Based on GuruFocus' analysis, Crimson Tide (LSE:TIDE) is currently considered Significantly Undervalued. The stock's GF Value™ is £1.85, compared to a current price of £0.93 — trading 50% below its estimated fair value. The current ROIC % is 13.53% and 335.7% above the Software industry median of 3.11. Crimson Tide's overall GF Score™ is 65/100 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 Crimson Tide (LSE:TIDE), the current ROIC % is 13.53% as of Oct. 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 Crimson Tide (LSE:TIDE) Overvalued in 2026?
Based on GuruFocus' analysis, Crimson Tide stock appears to be undervalued.
The current stock price of £0.93 is trading 50% below its estimated GF Value™ of £1.85.
GuruFocus considers Crimson Tide to be Significantly Undervalued.
Key valuation signals for LSE:TIDE:
ROIC %: 13.53%
GF Value™: £1.85 vs. price of £0.93 (50% below fair value)
Industry Position: 335.7% above the Software median
No single metric tells the full story. See the LSE:TIDE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Crimson Tide PLC is a UK-based company that is engaged in the provision of mobility solutions and related software development. The company provides mpro software, which is a Maas (Mobility as a Service) that provides job scheduling, alerting, and reporting. It aims to improve the efficiency of staff working and capturing data in the field. The company also provides non-core software solutions, which include reselling third-party software and related development and support services. Geographically, the company generates the majority of its revenue from the United Kingdom, followed by Ireland and the United States.
65GF Score
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