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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 %. Amagi Media Labs's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 12.57%.
As of today (2026-07-20), Amagi Media Labs's WACC % is 13.02%. Amagi Media Labs's ROIC % is 4.47% (calculated using TTM income statement data).
Amagi Media Labs earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Amagi Media Labs (NSE:AMAGI) 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, Amagi Media Labs's WACC % is 13.02%. Amagi Media Labs's ROIC % is 4.47% (calculated using TTM income statement data).
Amagi Media Labs 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.
Amagi Media Labs ROIC % Related Terms
Amagi Media Labs ROIC % Historical Data
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The historical data trend for Amagi Media Labs'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 Software - Application subindustry, Amagi Media Labs'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.
Amagi Media Labs ROIC % vs Software Industry
For the Software industry and Technology sector, Amagi Media Labs's ROIC % distribution charts can be found below:
* The bar in red indicates where Amagi Media Labs's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Amagi Media Labs (NSE:AMAGI) has a ROIC % of 12.57% 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 Amagi Media Labs and its competitors.
Is Amagi Media Labs' ROIC % too high?
Amagi Media Labs' current ROIC % is 12.57%. The Software industry median ROIC % is 3.13. Amagi Media Labs' value of 12.57% is 301.6% above this industry median. Overall, Amagi Media Labs has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Amagi Media Labs' ROIC % compare to UBER and SHOP?
Amagi Media Labs' ROIC % of 12.57% can be compared against companies in the Software industry. The industry median ROIC % is 3.13. Amagi Media Labs' value of 12.57% is 301.6% 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 Software company?
The median ROIC % among Software companies is 3.13, based on 2,831 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. Amagi Media Labs's current ROIC % of 12.57% is 301.6% 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 Amagi Media Labs and its competitors. For the Software industry, the median ROIC % is 3.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Amagi Media Labs's current ROIC % is 12.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amagi Media Labs stock overvalued right now?
Amagi Media Labs (NSE:AMAGI) has a current ROIC % of 12.57%. The current ROIC % is 12.57% and 301.6% above the Software industry median of 3.13. Amagi Media Labs' overall GF Score™ is 9/100 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 Amagi Media Labs (NSE:AMAGI), the current ROIC % is 12.57% 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.
Amagi Media Labs Ltd is engaged in the business of providing media technologies and related services. The company is a software-as-a-service (SaaS) provider that offers a cloud-native platform for media companies to distribute digital content to end users. The platform enables content providers and distributors to upload and deliver video over the internet through smart televisions, smartphones, and applications, rather than through traditional cable or set-top box services. The company also helps monetize such content through targeted advertising services for advertisers. The majority of the company's revenue is derived from its streaming unification services. Geographically, it derives the maximum revenue from America, and the rest from Europe, Asia-Pacific, the Middle East and India.
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