Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Medacta Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 9.68%.
As of today (2026-07-17), Medacta Group's WACC % is 6.10%. Medacta Group's ROIC % is 11.99% (calculated using TTM income statement data).
Medacta 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.
Medacta Group (LTS:0A05) 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, Medacta Group's WACC % is 6.10%. Medacta Group's ROIC % is 11.99% (calculated using TTM income statement data).
Medacta 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.
Medacta Group ROIC % Related Terms
Medacta Group ROIC % Historical Data
* Premium members only.
The historical data trend for Medacta 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 Medical Devices subindustry, Medacta 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.
Medacta Group ROIC % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Medacta Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Medacta 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.
Medacta Group (LTS:0A05) has a ROIC % of 9.68% 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 Medacta Group and its competitors.
Is Medacta Group's ROIC % too high?
Medacta Group's current ROIC % is 9.68%. The Medical Devices & Instruments industry median ROIC % is 1.28. Medacta Group's value of 9.68% is 659.2% above this industry median. Overall, Medacta Group has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Medacta Group's ROIC % compare to ABT and SYK?
Medacta Group's ROIC % of 9.68% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROIC % is 1.28. Medacta Group's value of 9.68% is 659.2% 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 Medical Devices & Instruments company?
The median ROIC % among Medical Devices & Instruments companies is 1.28, based on 848 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. Medacta Group's current ROIC % of 9.68% is 659.2% 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 Medacta Group and its competitors. For the Medical Devices & Instruments industry, the median ROIC % is 1.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Medacta Group's current ROIC % is 9.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Medacta Group stock overvalued right now?
Based on GuruFocus' analysis, Medacta Group (LTS:0A05) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF168.11, compared to a current price of CHF139.80 — trading 16.8% below its estimated fair value. The current ROIC % is 9.68% and 659.2% above the Medical Devices & Instruments industry median of 1.28. Medacta Group's overall GF Score™ is 89/100 with 2 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 Medacta Group (LTS:0A05), the current ROIC % is 9.68% 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 Medacta Group (LTS:0A05) Overvalued in 2026?
Based on GuruFocus' analysis, Medacta Group stock appears to be undervalued.
The current stock price of CHF139.80 is trading 16.8% below its estimated GF Value™ of CHF168.11.
GuruFocus considers Medacta Group to be Modestly Undervalued.
Key valuation signals for LTS:0A05:
ROIC %: 9.68%
GF Value™: CHF168.11 vs. price of CHF139.80 (16.8% below fair value)
Industry Position: 659.2% above the Medical Devices & Instruments median
No single metric tells the full story. See the LTS:0A05 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Medacta Group SA is involved in developing, manufacturing, and distributing orthopedic and neurosurgical medical devices. It specializes in the design, production, and distribution of personalized and sustainable solutions for joint replacement, sports medicine, and spine surgery. Medacta's product portfolio includes hip, knee, shoulder, and spine replacement solutions, along with a comprehensive range of sports medicine. Its products and surgical techniques are supported by an extensive program of surgeon education and engagement initiatives, enabling its offerings to be effective for the patient and surgeon. Geographically, the company derives maximum revenue from EMEA (which includes Europe, Middle East and Africa), followed by North America, Asia-Pacific, and the Latin America markets.
89GF Score
Get the complete analysis for LTS:0A05
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
LTS:0A05 has been successfully added to your 
