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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 %. Town Centre Securities's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 2.91%.
As of today (2026-07-21), Town Centre Securities's WACC % is 5.89%. Town Centre Securities's ROIC % is 2.58% (calculated using TTM income statement data).
Town Centre Securities earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Town Centre Securities (LSE:TOWN) 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, Town Centre Securities's WACC % is 5.89%. Town Centre Securities's ROIC % is 2.58% (calculated using TTM income statement data).
Town Centre Securities 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 REIT - Diversified subindustry, Town Centre Securities'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.
Town Centre Securities ROIC % vs REITs Industry
For the REITs industry and Real Estate sector, Town Centre Securities's ROIC % distribution charts can be found below:
* The bar in red indicates where Town Centre Securities'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.
Town Centre Securities (LSE:TOWN) has a ROIC % of 2.91% 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 Town Centre Securities and its competitors.
Is Town Centre Securities' ROIC % too high?
Town Centre Securities' current ROIC % is 2.91%. The REITs industry median ROIC % is 3.74. Town Centre Securities' value of 2.91% is 22.2% below this industry median. Overall, Town Centre Securities has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Town Centre Securities' ROIC % compare to VICI and WPC?
Town Centre Securities' ROIC % of 2.91% can be compared against companies in the REITs industry. The industry median ROIC % is 3.74. Town Centre Securities' value of 2.91% is 22.2% below 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 REITs company?
The median ROIC % among REITs companies is 3.74, based on 740 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. Town Centre Securities's current ROIC % of 2.91% is 22.2% below 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 Town Centre Securities and its competitors. For the REITs industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Town Centre Securities's current ROIC % is 2.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Town Centre Securities stock overvalued right now?
Based on GuruFocus' analysis, Town Centre Securities (LSE:TOWN) is currently considered Modestly Undervalued. The stock's GF Value™ is £1.43, compared to a current price of £1.20 — trading 16.1% below its estimated fair value. The current ROIC % is 2.91% and 22.2% below the REITs industry median of 3.74. Town Centre Securities' overall GF Score™ is 64/100 with 7 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 Town Centre Securities (LSE:TOWN), the current ROIC % is 2.91% 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 Town Centre Securities (LSE:TOWN) Overvalued in 2026?
Based on GuruFocus' analysis, Town Centre Securities stock appears to be undervalued.
The current stock price of £1.20 is trading 16.1% below its estimated GF Value™ of £1.43.
GuruFocus considers Town Centre Securities to be Modestly Undervalued.
Key valuation signals for LSE:TOWN:
ROIC %: 2.91%
GF Value™: £1.43 vs. price of £1.20 (16.1% below fair value)
No single metric tells the full story. See the LSE:TOWN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Town Centre Securities PLC is a United Kingdom-based company engaged in property investment, development, trading, and the provision of hotel and car parks. The company operates in four business segments comprising property rental, car park operations, hotel operations, and investments. Geographically their operations are performed wholly in the United Kingdom. It serves various sectors such as retail, leisure, office, car parking, distribution, and residential. The company's property portfolio includes Rochdale Retail Park, Marina Residential, Eider House, Brownsfield Mill, Carver's Warehouse, Retail Village, The Arena Quarter, and others. The company derives its revenue from the Property Rental segment.
64GF Score
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