ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. NPK International's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 11.14%.
As of today (2026-06-25), NPK International's WACC % is 12.58%. NPK International's ROIC % is 10.25% (calculated using TTM income statement data).
NPK International earns returns that do not match up to its cost of capital. It will destroy value as it grows.
NPK International (NYSE:NPKI) 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, NPK International's WACC % is 12.58%. NPK International's ROIC % is 10.25% (calculated using TTM income statement data).
NPK International 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.
NPK International ROIC % Related Terms
NPK International ROIC % Historical Data
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The historical data trend for NPK International'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 Building Products & Equipment subindustry, NPK International'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.
NPK International ROIC % vs Construction Industry
For the Construction industry and Industrials sector, NPK International's ROIC % distribution charts can be found below:
* The bar in red indicates where NPK International'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.
NPK International (NPKI) has a ROIC % of 11.14% 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 NPK International and its competitors.
Is NPK International's ROIC % too high?
NPK International's current ROIC % is 11.14%. The Construction industry median ROIC % is 4.65. NPK International's value of 11.14% is 139.6% above this industry median. Overall, NPK International has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NPK International's ROIC % compare to ROCK and ARLO?
NPK International's ROIC % of 11.14% can be compared against companies in the Construction industry. The industry median ROIC % is 4.65. NPK International's value of 11.14% is 139.6% 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 Construction company?
The median ROIC % among Construction companies is 4.65, based on 1,755 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. NPK International's current ROIC % of 11.14% is 139.6% 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 NPK International and its competitors. For the Construction industry, the median ROIC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NPK International's current ROIC % is 11.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NPK International stock overvalued right now?
Based on GuruFocus' analysis, NPK International (NPKI) is currently considered Significantly Overvalued. The stock's GF Value™ is $10.85, compared to a current price of $15.40 — trading 41.9% above its estimated fair value. The current ROIC % is 11.14% and 139.6% above the Construction industry median of 4.65. NPK International's overall GF Score™ is 63/100 with 6 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 NPK International (NPKI), the current ROIC % is 11.14% 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 NPK International (NPKI) Overvalued in 2026?
Based on GuruFocus' analysis, NPK International stock appears to be overvalued.
The current stock price of $15.40 is trading 41.9% above its estimated GF Value™ of $10.85.
GuruFocus considers NPK International to be Significantly Overvalued.
Key valuation signals for NPKI:
ROIC %: 11.14%
GF Value™: $10.85 vs. price of $15.40 (41.9% above fair value)
Industry Position: 139.6% above the Construction median
No single metric tells the full story. See the NPKI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NPK International Inc is a temporary worksite access solutions company that manufactures, sells, and rents recyclable composite matting products, along with a full suite of services, including planning, logistics, and site restoration. The company generates majority of revenue from the rental of recyclable composite matting systems, along with related site construction and services to customers in various markets including power transmission, oil and natural gas exploration and production, pipeline, renewable energy, petrochemical, construction and other industries within the United States and United Kingdom. It generates maximum revenue from United States.
63GF Score
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