ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Marchex's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -22.96%.
As of today (2026-06-29), Marchex's WACC % is 13.65%. Marchex's ROIC % is -15.87% (calculated using TTM income statement data).
Marchex earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Marchex (NAS:MCHX) 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, Marchex's WACC % is 13.65%. Marchex's ROIC % is -15.87% (calculated using TTM income statement data).
Marchex 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.
Marchex ROIC % Related Terms
Marchex ROIC % Historical Data
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The historical data trend for Marchex'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 Advertising Agencies subindustry, Marchex'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.
Marchex ROIC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Marchex's ROIC % distribution charts can be found below:
* The bar in red indicates where Marchex'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.
Marchex (MCHX) has a ROIC % of -22.96% 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 Marchex and its competitors.
Is Marchex's ROIC % too high?
Marchex's current ROIC % is -22.96%. Overall, Marchex has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Marchex's ROIC % compare to TJGC and SWAG?
Marchex's ROIC % of -22.96% can be compared against companies in the Media - Diversified industry. The industry median ROIC % is 1.40. 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 Media - Diversified company?
The median ROIC % among Media - Diversified companies is 1.40, based on 1,009 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. 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 Marchex and its competitors. For the Media - Diversified industry, the median ROIC % is 1.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Marchex's current ROIC % is -22.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Marchex stock overvalued right now?
Based on GuruFocus' analysis, Marchex (MCHX) is currently considered Fairly Valued. The stock's GF Value™ is $1.57, compared to a current price of $1.67 — trading 6.1% above its estimated fair value. The current ROIC % is -22.96%. Marchex's overall GF Score™ is 56/100 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 Marchex (MCHX), the current ROIC % is -22.96% 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 Marchex (MCHX) Overvalued in 2026?
Based on GuruFocus' analysis, Marchex stock appears to be overvalued.
The current stock price of $1.67 is trading 6.1% above its estimated GF Value™ of $1.57.
GuruFocus considers Marchex to be Fairly Valued.
Key valuation signals for MCHX:
ROIC %: -22.96%
GF Value™: $1.57 vs. price of $1.67 (6.1% above fair value)
No single metric tells the full story. See the MCHX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Marchex Inc provides AI-based conversational intelligence and analytics solutions that generate insights from customer communications data. The company's products support sales, marketing, and executive teams in analyzing customer interactions across communication channels and informing business decisions. It serves companies operating in business-to-business-to-consumer (B2B2C) markets across multiple industries like automotive, home services, healthcare, real estate, and advertising. The company operates in a single segment: conversational analytics and related solutions. The company generates the majority of revenue from its conversational intelligence product offerings. Geographically, it generates the maximum revenue from the United States.
56GF Score
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