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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 %. Carel Industries SpA's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 13.57%.
As of today (2026-07-16), Carel Industries SpA's WACC % is 11.00%. Carel Industries SpA's ROIC % is 11.35% (calculated using TTM income statement data).
Carel Industries SpA 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.
Carel Industries SpA (MIL:CRL) 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, Carel Industries SpA's WACC % is 11.00%. Carel Industries SpA's ROIC % is 11.35% (calculated using TTM income statement data).
Carel Industries SpA 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 Electronic Components subindustry, Carel Industries SpA'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.
Carel Industries SpA ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, Carel Industries SpA's ROIC % distribution charts can be found below:
* The bar in red indicates where Carel Industries SpA'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.
Carel Industries SpA (MIL:CRL) has a ROIC % of 13.57% 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 Carel Industries SpA and its competitors.
Is Carel Industries SpA's ROIC % too high?
Carel Industries SpA's current ROIC % is 13.57%. The Hardware industry median ROIC % is 4.12. Carel Industries SpA's value of 13.57% is 229.4% above this industry median. Overall, Carel Industries SpA has a GF Score™ of 97/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Carel Industries SpA's ROIC % compare to APH and GLW?
Carel Industries SpA's ROIC % of 13.57% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.12. Carel Industries SpA's value of 13.57% is 229.4% 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 Hardware company?
The median ROIC % among Hardware companies is 4.12, based on 2,449 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. Carel Industries SpA's current ROIC % of 13.57% is 229.4% 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 Carel Industries SpA and its competitors. For the Hardware industry, the median ROIC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Carel Industries SpA's current ROIC % is 13.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carel Industries SpA stock overvalued right now?
Based on GuruFocus' analysis, Carel Industries SpA (MIL:CRL) is currently considered Modestly Overvalued. The stock's GF Value™ is €24.02, compared to a current price of €27.70 — trading 15.3% above its estimated fair value. The current ROIC % is 13.57% and 229.4% above the Hardware industry median of 4.12. Carel Industries SpA's overall GF Score™ is 97/100 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 Carel Industries SpA (MIL:CRL), the current ROIC % is 13.57% 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 Carel Industries SpA (MIL:CRL) Overvalued in 2026?
Based on GuruFocus' analysis, Carel Industries SpA stock appears to be overvalued.
The current stock price of €27.70 is trading 15.3% above its estimated GF Value™ of €24.02.
GuruFocus considers Carel Industries SpA to be Modestly Overvalued.
Key valuation signals for MIL:CRL:
ROIC %: 13.57%
GF Value™: €24.02 vs. price of €27.70 (15.3% above fair value)
Industry Position: 229.4% above the Hardware median
No single metric tells the full story. See the MIL:CRL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Carel Industries SpA manufactures control systems and humidification for air conditioning and refrigeration. The group provides control solutions for the commercial, industrial, and residential air-conditioning and refrigeration (HVAC/R) markets. Its geographical segments are Europe, the Middle East and Africa, North America, South America, and APAC. The company's industrial applications for the air-conditioning sector are designed for data centers. Its products include programmable controls, room terminals, Isothermal Humidifiers, Sensors and protection devices, Sensors and protection devices, and others. The company derives maximum revenue from Europe, the Middle East, and Africa segment.
97GF Score
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