ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Mips AB's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 12.76%.
As of today (2026-06-25), Mips AB's WACC % is 12.39%. Mips AB's ROIC % is 22.28% (calculated using TTM income statement data).
Mips AB 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.
Mips AB (OTCPK:MPZAF) 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, Mips AB's WACC % is 12.39%. Mips AB's ROIC % is 22.28% (calculated using TTM income statement data).
Mips AB 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.
Mips AB ROIC % Related Terms
Mips AB ROIC % Historical Data
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The historical data trend for Mips AB'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 Leisure subindustry, Mips AB'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.
Mips AB ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Mips AB's ROIC % distribution charts can be found below:
* The bar in red indicates where Mips AB'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.
Mips AB (MPZAF) has a ROIC % of 12.76% 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 Mips AB and its competitors.
Is Mips AB's ROIC % too high?
Mips AB's current ROIC % is 12.76%. The Travel & Leisure industry median ROIC % is 3.74. Mips AB's value of 12.76% is 241.2% above this industry median. Overall, Mips AB has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mips AB's ROIC % compare to AS and HAS?
Mips AB's ROIC % of 12.76% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.74. Mips AB's value of 12.76% is 241.2% 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 Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.74, based on 833 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. Mips AB's current ROIC % of 12.76% is 241.2% 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 Mips AB and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mips AB's current ROIC % is 12.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mips AB stock overvalued right now?
Based on GuruFocus' analysis, Mips AB (MPZAF) is currently considered Significantly Undervalued. The stock's GF Value™ is $110.00, compared to a current price of $25.48 — trading 76.8% below its estimated fair value. The current ROIC % is 12.76% and 241.2% above the Travel & Leisure industry median of 3.74. Mips AB's overall GF Score™ is 77/100 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 Mips AB (MPZAF), the current ROIC % is 12.76% 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 Mips AB (MPZAF) Overvalued in 2026?
Based on GuruFocus' analysis, Mips AB stock appears to be undervalued.
The current stock price of $25.48 is trading 76.8% below its estimated GF Value™ of $110.00.
GuruFocus considers Mips AB to be Significantly Undervalued.
Key valuation signals for MPZAF:
ROIC %: 12.76%
GF Value™: $110.00 vs. price of $25.48 (76.8% below fair value)
Industry Position: 241.2% above the Travel & Leisure median
No single metric tells the full story. See the MPZAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mips AB is a safety solutions provider that develops and sells the Mips safety system, comprising a low friction layer with different components that are designed for different helmet models. The system is adapted to different helmet models and is used by manufacturers in helmets for activities such as cycling, snow sports, motorcycling, and professional safety applications. The company sells its products and licenses the associated technology to helmet brands that manufacture, market, and sell helmets to end-users, directly or indirectly. Geographically, the company derives the majority of revenue from North America.
77GF Score
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