ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Next Geosolutions Europe SpA's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 31.88%.
As of today (2026-07-02), Next Geosolutions Europe SpA's WACC % is 9.64%. Next Geosolutions Europe SpA's ROIC % is 36.89% (calculated using TTM income statement data).
Next Geosolutions Europe 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.
Next Geosolutions Europe SpA (MIL:NXT) 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, Next Geosolutions Europe SpA's WACC % is 9.64%. Next Geosolutions Europe SpA's ROIC % is 36.89% (calculated using TTM income statement data).
Next Geosolutions Europe 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.
Next Geosolutions Europe SpA ROIC % Related Terms
Next Geosolutions Europe SpA ROIC % Historical Data
* 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 Oil & Gas Equipment & Services subindustry, Next Geosolutions Europe 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.
Next Geosolutions Europe SpA ROIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Next Geosolutions Europe SpA's ROIC % distribution charts can be found below:
* The bar in red indicates where Next Geosolutions Europe SpA'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.
Next Geosolutions Europe SpA (MIL:NXT) has a ROIC % of 31.88% 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 Next Geosolutions Europe SpA and its competitors.
Is Next Geosolutions Europe SpA's ROIC % too high?
Next Geosolutions Europe SpA's current ROIC % is 31.88%. The Oil & Gas industry median ROIC % is 3.65. Next Geosolutions Europe SpA's value of 31.88% is 773.4% above this industry median. Overall, Next Geosolutions Europe SpA has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Next Geosolutions Europe SpA's ROIC % compare to SLB and BKR?
Next Geosolutions Europe SpA's ROIC % of 31.88% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.65. Next Geosolutions Europe SpA's value of 31.88% is 773.4% 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 an Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.65, based on 999 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. Next Geosolutions Europe SpA's current ROIC % of 31.88% is 773.4% 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 Next Geosolutions Europe SpA and its competitors. For the Oil & Gas industry, the median ROIC % is 3.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Next Geosolutions Europe SpA's current ROIC % is 31.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Next Geosolutions Europe SpA stock overvalued right now?
Next Geosolutions Europe SpA (MIL:NXT) has a current ROIC % of 31.88%. The current ROIC % is 31.88% and 773.4% above the Oil & Gas industry median of 3.65. Next Geosolutions Europe SpA's overall GF Score™ is 21/100 with 7 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 Next Geosolutions Europe SpA (MIL:NXT), the current ROIC % is 31.88% 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.
Next Geosolutions Europe SpA operates in the underwater survey sector, offering marine geoscience services to support the engineering and construction of infrastructures in the EMEA market in favor of companies operating mainly in the sectors of submarine electrical cables and energy renewables (in particular, wind energy) and, to a lesser extent, in the sector Offshore Oil&Gas. The Group operates in different geographical areas; in particular: in the area of the Mediterranean Sea, with particular reference to the area of the Eastern Mediterranean, the Baltic Sea, the North Sea, and the Eastern Atlantic Ocean.
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