ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. MS&AD Insurance Group Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 2.55%.
As of today (2026-06-25), MS&AD Insurance Group Holdings's WACC % is 3.76%. MS&AD Insurance Group Holdings's ROIC % is 3.16% (calculated using TTM income statement data).
MS&AD Insurance Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
MS&AD Insurance Group Holdings (OTCPK:MSADY) 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, MS&AD Insurance Group Holdings's WACC % is 3.76%. MS&AD Insurance Group Holdings's ROIC % is 3.16% (calculated using TTM income statement data).
MS&AD Insurance Group 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.
MS&AD Insurance Group Holdings ROIC % Related Terms
MS&AD Insurance Group Holdings 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 Insurance - Property & Casualty subindustry, MS&AD Insurance Group 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.
MS&AD Insurance Group Holdings ROIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, MS&AD Insurance Group Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where MS&AD Insurance Group Holdings's ROIC % falls into.
Note:
The EBIT data used here is four times the quarterly (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.
MS&AD Insurance Group Holdings (MSADY) has a ROIC % of 2.55% 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 MS&AD Insurance Group Holdings and its competitors.
Is MS&AD Insurance Group Holdings' ROIC % too high?
MS&AD Insurance Group Holdings' current ROIC % is 2.55%. The Insurance industry median ROIC % is 3.36. MS&AD Insurance Group Holdings' value of 2.55% is 24.1% below this industry median. Overall, MS&AD Insurance Group Holdings has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MS&AD Insurance Group Holdings' ROIC % compare to CB and PGR?
MS&AD Insurance Group Holdings' ROIC % of 2.55% can be compared against companies in the Insurance industry. The industry median ROIC % is 3.36. MS&AD Insurance Group Holdings' value of 2.55% is 24.1% below 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 Insurance company?
The median ROIC % among Insurance companies is 3.36, based on 368 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. MS&AD Insurance Group Holdings's current ROIC % of 2.55% is 24.1% below 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 MS&AD Insurance Group Holdings and its competitors. For the Insurance industry, the median ROIC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MS&AD Insurance Group Holdings's current ROIC % is 2.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MS&AD Insurance Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, MS&AD Insurance Group Holdings (MSADY) is currently considered Modestly Overvalued. The stock's GF Value™ is $23.57, compared to a current price of $27.57 — trading 17% above its estimated fair value. The current ROIC % is 2.55% and 24.1% below the Insurance industry median of 3.36. MS&AD Insurance Group Holdings' overall GF Score™ is 78/100 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 MS&AD Insurance Group Holdings (MSADY), the current ROIC % is 2.55% 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.
Is MS&AD Insurance Group Holdings (MSADY) Overvalued in 2026?
Based on GuruFocus' analysis, MS&AD Insurance Group Holdings stock appears to be overvalued.
The current stock price of $27.57 is trading 17% above its estimated GF Value™ of $23.57.
GuruFocus considers MS&AD Insurance Group Holdings to be Modestly Overvalued.
Key valuation signals for MSADY:
ROIC %: 2.55%
GF Value™: $23.57 vs. price of $27.57 (17% above fair value)
Industry Position: 24.1% below the Insurance median
No single metric tells the full story. See the MSADY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MS&AD Insurance Group Holdings Business Description
MS&AD is Japan's largest domestic property and casualty insurer by market share, trailing Tokio Marine HCC in global scale. Domestically, it maintains a solid second-tier life presence. Overseas, MS&AD holds a dominant, profitable retail footprint in the Association of Southeast Asian Nations and is aggressively pivoting to US specialty lines via a milestone investment in W.R. Berkley, supported by MS Amlin's successful turnaround in global specialty markets.Domestically, MS&AD leverages deep corporate ties with Mitsui and Sumitomo, alongside an exclusive Toyota partnership that provides unparalleled advantages in capturing auto insurance customers and building advanced telematics data funnels.
78GF Score
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