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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 %. Palatin Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -904.06%.
As of today (2026-09-22), Palatin Technologies's WACC % is 7.83%. Palatin Technologies's ROIC % is -978.99% (calculated using TTM income statement data).
Palatin Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Palatin Technologies's WACC % is 7.83%. Palatin Technologies's ROIC % is -978.99% (calculated using TTM income statement data).
Palatin Technologies 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 Biotechnology subindustry, Palatin Technologies'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.
Palatin Technologies ROIC % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Palatin Technologies's ROIC % distribution charts can be found below:
* The bar in red indicates where Palatin Technologies's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) 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.
Palatin Technologies (LTS:0KF3) has a ROIC % of -904.06% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Palatin Technologies and its competitors.
Is Palatin Technologies' ROIC % too high?
Palatin Technologies' current ROIC % is -904.06%. Overall, Palatin Technologies has a GF Score™ of 45/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Palatin Technologies' ROIC % compare to BIVI and NCEL?
Palatin Technologies' ROIC % of -904.06% 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 Palatin Technologies and its competitors. Palatin Technologies's current ROIC % is -904.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palatin Technologies stock overvalued right now?
Based on GuruFocus' analysis, Palatin Technologies (LTS:0KF3) is currently considered Possible Value Trap. The stock's GF Value™ is $51.03, compared to a current price of $11.14 — trading 78.2% below its estimated fair value. The current ROIC % is -904.06%. Palatin Technologies' overall GF Score™ is 45/100 with 5 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 Palatin Technologies (LTS:0KF3), the current ROIC % is -904.06% as of Mar. 2026. 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 Palatin Technologies (LTS:0KF3) Overvalued in 2026?
Based on GuruFocus' analysis, Palatin Technologies stock appears to be undervalued.
The current stock price of $11.14 is trading 78.2% below its estimated GF Value™ of $51.03.
GuruFocus considers Palatin Technologies to be Possible Value Trap.
Key valuation signals for LTS:0KF3:
ROIC %: -904.06%
GF Value™: $51.03 vs. price of $11.14 (78.2% below fair value)
No single metric tells the full story. See the LTS:0KF3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palatin Technologies Inc. is a biopharmaceutical company that develops receptor-specific peptide therapeutics based on molecules that modulate the melanocortin receptor system. Its pipeline targets diseases with unmet medical needs, with programs focused on melanocortin-1 receptor (MC1R) agonists for inflammatory and dermatologic conditions and melanocortin-4 receptor (MC4R) agonists for metabolic and other indications. The company's most commercially advanced product is bremelanotide, an MC4R agonist marketed as Vyleesi for hypoactive sexual desire disorder in premenopausal women, which was approved by the FDA in 2019 and is licensed to a commercial partner in the United States. Palatin operates in a single business segment, life sciences, and generates revenue primarily through licensing fees, milestone payments, royalties, and collaboration agreements rather than direct product sales. The company is headquartered in Cranbury, New Jersey, and its activities are concentrated in the United States.
45GF Score
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