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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 %. Meridian Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 7.88%.
As of today (2026-08-15), Meridian Holdings's WACC % is 8.06%. Meridian Holdings's ROIC % is 3.17% (calculated using TTM income statement data).
Meridian Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Meridian Holdings's WACC % is 8.06%. Meridian Holdings's ROIC % is 3.17% (calculated using TTM income statement data).
Meridian Holdings 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.
Meridian Holdings ROIC % Related Terms
Meridian Holdings ROIC % Historical Data
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The historical data trend for Meridian Holdings'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 Gambling subindustry, Meridian Holdings'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.
Meridian Holdings ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Meridian Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Meridian Holdings's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 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.
Meridian Holdings (MRDN) has a ROIC % of 7.88% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Meridian Holdings and its competitors.
Is Meridian Holdings' ROIC % too high?
Meridian Holdings' current ROIC % is 7.88%. The Travel & Leisure industry median ROIC % is 3.75. Meridian Holdings' value of 7.88% is 110.4% above this industry median. Overall, Meridian Holdings has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Meridian Holdings' ROIC % compare to INSE and ROLR?
Meridian Holdings' ROIC % of 7.88% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.75. Meridian Holdings' value of 7.88% is 110.4% 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 Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.75, based on 834 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. Meridian Holdings's current ROIC % of 7.88% is 110.4% 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 Meridian Holdings and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meridian Holdings's current ROIC % is 7.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meridian Holdings stock overvalued right now?
Based on GuruFocus' analysis, Meridian Holdings (MRDN) is currently considered Possible Value Trap. The stock's GF Value™ is $25.12, compared to a current price of $14.30 — trading 43.1% below its estimated fair value. The current ROIC % is 7.88% and 110.4% above the Travel & Leisure industry median of 3.75. Meridian Holdings' overall GF Score™ is 74/100 with 8 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 Meridian Holdings (MRDN), the current ROIC % is 7.88% as of Jun. 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 Meridian Holdings (MRDN) Overvalued in 2026?
Based on GuruFocus' analysis, Meridian Holdings stock appears to be undervalued.
The current stock price of $14.30 is trading 43.1% below its estimated GF Value™ of $25.12.
GuruFocus considers Meridian Holdings to be Possible Value Trap.
Key valuation signals for MRDN:
ROIC %: 7.88%
GF Value™: $25.12 vs. price of $14.30 (43.1% below fair value)
Industry Position: 110.4% above the Travel & Leisure median
No single metric tells the full story. See the MRDN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Meridian Holdings Inc is engaged in the online gaming and betting business, providing sports betting, online casino, and gaming operations across multiple jurisdictions in Europe, Africa, and Central and South America. The company has three reportable segments: MeridianBet Group, GMAG, and RKings & CFAC. The MeridianBet Group segment includes retail and online sports betting, casinos, and related gaming operations. The GMAG segment focuses on the resale of third-party gaming content, mainly serving customers in the Asia-Pacific region. The RKings & CFAC segment is involved in pay-to-enter prize competitions and trade promotions conducted in the United Kingdom and Australia. It generates the majority of its revenue from the MeridianBet Group segment.
74GF Score
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