ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Brodrene A & O Johansen AS's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 6.20%.
As of today (2026-07-01), Brodrene A & O Johansen AS's WACC % is 3.15%. Brodrene A & O Johansen AS's ROIC % is 7.60% (calculated using TTM income statement data).
Brodrene A & O Johansen AS 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.
Brodrene A & O Johansen AS (LTS:0RNT) 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, Brodrene A & O Johansen AS's WACC % is 3.15%. Brodrene A & O Johansen AS's ROIC % is 7.60% (calculated using TTM income statement data).
Brodrene A & O Johansen AS 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.
* 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 Industrial Distribution subindustry, Brodrene A & O Johansen AS'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.
Brodrene A & O Johansen AS ROIC % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Brodrene A & O Johansen AS's ROIC % distribution charts can be found below:
* The bar in red indicates where Brodrene A & O Johansen AS'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.
Brodrene A & O Johansen AS (LTS:0RNT) has a ROIC % of 6.20% 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 Brodrene A & O Johansen AS and its competitors.
Is Brodrene A & O Johansen AS's ROIC % too high?
Brodrene A & O Johansen AS's current ROIC % is 6.20%. The Industrial Distribution industry median ROIC % is 6.21. Brodrene A & O Johansen AS's value of 6.20% is 0.2% below this industry median. Overall, Brodrene A & O Johansen AS has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Brodrene A & O Johansen AS's ROIC % compare to GWW and FAST?
Brodrene A & O Johansen AS's ROIC % of 6.20% can be compared against companies in the Industrial Distribution industry. The industry median ROIC % is 6.21. Brodrene A & O Johansen AS's value of 6.20% is 0.2% 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 an Industrial Distribution company?
The median ROIC % among Industrial Distribution companies is 6.21, based on 155 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. Brodrene A & O Johansen AS's current ROIC % of 6.20% is 0.2% 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 Brodrene A & O Johansen AS and its competitors. For the Industrial Distribution industry, the median ROIC % is 6.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brodrene A & O Johansen AS's current ROIC % is 6.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brodrene A & O Johansen AS stock overvalued right now?
Based on GuruFocus' analysis, Brodrene A & O Johansen AS (LTS:0RNT) is currently considered Modestly Undervalued. The stock's GF Value™ is kr97.64, compared to a current price of kr87.55 — trading 10.3% below its estimated fair value. The current ROIC % is 6.20% and 0.2% below the Industrial Distribution industry median of 6.21. Brodrene A & O Johansen AS's overall GF Score™ is 73/100 with 4 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 Brodrene A & O Johansen AS (LTS:0RNT), the current ROIC % is 6.20% 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 Brodrene A & O Johansen AS (LTS:0RNT) Overvalued in 2026?
Based on GuruFocus' analysis, Brodrene A & O Johansen AS stock appears to be undervalued.
The current stock price of kr87.55 is trading 10.3% below its estimated GF Value™ of kr97.64.
GuruFocus considers Brodrene A & O Johansen AS to be Modestly Undervalued.
Key valuation signals for LTS:0RNT:
ROIC %: 6.20%
GF Value™: kr97.64 vs. price of kr87.55 (10.3% below fair value)
Industry Position: 0.2% below the Industrial Distribution median
No single metric tells the full story. See the LTS:0RNT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Brodrene A & O Johansen AS is a wholesaler that serves professional and private customers through an omni-channel business model combining digital solutions with a physical presence. The company offers a broad range of technical installation materials and related products, including workwear, tools and brackets, water supply, drainage and sewage, energy, electrical products and HVAC solutions, supported by services such as digital solutions, project advice and logistics. It operates through two segments: B2B, which earns the majority of revenue and serves professional tradesmen and construction companies, and B2C, which serves private DIY consumers through webshops and showrooms. The Group operates mainly in Denmark.
73GF Score
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