ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. ForFarmers NV's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 11.40%.
As of today (2026-07-01), ForFarmers NV's WACC % is 6.03%. ForFarmers NV's ROIC % is 10.97% (calculated using TTM income statement data).
ForFarmers NV 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.
ForFarmers NV (LTS:0RHZ) 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, ForFarmers NV's WACC % is 6.03%. ForFarmers NV's ROIC % is 10.97% (calculated using TTM income statement data).
ForFarmers NV 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.
ForFarmers NV ROIC % Related Terms
ForFarmers NV ROIC % Historical Data
* Premium members only.
The historical data trend for ForFarmers NV'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 Packaged Foods subindustry, ForFarmers NV'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.
ForFarmers NV ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, ForFarmers NV's ROIC % distribution charts can be found below:
* The bar in red indicates where ForFarmers NV'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.
ForFarmers NV (LTS:0RHZ) has a ROIC % of 11.40% 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 ForFarmers NV and its competitors.
Is ForFarmers NV's ROIC % too high?
ForFarmers NV's current ROIC % is 11.40%. The Consumer Packaged Goods industry median ROIC % is 5.14. ForFarmers NV's value of 11.40% is 122% above this industry median. Overall, ForFarmers NV has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ForFarmers NV's ROIC % compare to KHC and GIS?
ForFarmers NV's ROIC % of 11.40% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.14. ForFarmers NV's value of 11.40% is 122% 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 Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.14, based on 1,942 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. ForFarmers NV's current ROIC % of 11.40% is 122% 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 ForFarmers NV and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ForFarmers NV's current ROIC % is 11.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ForFarmers NV stock overvalued right now?
Based on GuruFocus' analysis, ForFarmers NV (LTS:0RHZ) is currently considered Significantly Overvalued. The stock's GF Value™ is €3.14, compared to a current price of €6.24 — trading 98.6% above its estimated fair value. The current ROIC % is 11.40% and 122% above the Consumer Packaged Goods industry median of 5.14. ForFarmers NV's overall GF Score™ is 63/100 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 ForFarmers NV (LTS:0RHZ), the current ROIC % is 11.40% 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 ForFarmers NV (LTS:0RHZ) Overvalued in 2026?
Based on GuruFocus' analysis, ForFarmers NV stock appears to be overvalued.
The current stock price of €6.24 is trading 98.6% above its estimated GF Value™ of €3.14.
GuruFocus considers ForFarmers NV to be Significantly Overvalued.
Key valuation signals for LTS:0RHZ:
ROIC %: 11.40%
GF Value™: €3.14 vs. price of €6.24 (98.6% above fair value)
Industry Position: 122% above the Consumer Packaged Goods median
No single metric tells the full story. See the LTS:0RHZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ForFarmers NV is an animal nutrition company. Its core business is the supply of high-quality feed solutions at competitive prices for livestock farming. The Company provides compound feed, specialties, feed additives, and co-products, supported by formulation, nutrition, innovation, procurement, feed milling, logistics, and delivery, and on-farm advisory services. Feed solutions are offered for ruminants, pigs, poultry, and horses, with activities also including organic feed through Reudink and residual flows through Van Triest CirQlar. The Company operates across the Netherlands, Germany, the United Kingdom, Poland, Belgium, and other countries, with the majority of its revenue generated in the Netherlands.
63GF Score
Get the complete analysis for LTS:0RHZ
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:0RHZ has been successfully added to your 
