ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. FCS Software Solutions's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.23%.
As of today (2026-07-04), FCS Software Solutions's WACC % is 19.02%. FCS Software Solutions's ROIC % is 0.15% (calculated using TTM income statement data).
FCS Software Solutions 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, FCS Software Solutions's WACC % is 19.02%. FCS Software Solutions's ROIC % is 0.15% (calculated using TTM income statement data).
FCS Software Solutions 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.
* 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 Information Technology Services subindustry, FCS Software Solutions'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.
FCS Software Solutions ROIC % vs Software Industry
For the Software industry and Technology sector, FCS Software Solutions's ROIC % distribution charts can be found below:
* The bar in red indicates where FCS Software Solutions'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.
FCS Software Solutions (NSE:FCSSOFT) has a ROIC % of 4.23% 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 FCS Software Solutions and its competitors.
Is FCS Software Solutions' ROIC % too high?
FCS Software Solutions' current ROIC % is 4.23%. The Software industry median ROIC % is 3.05. FCS Software Solutions' value of 4.23% is 38.9% above this industry median. Overall, FCS Software Solutions has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does FCS Software Solutions' ROIC % compare to IBM and ACN?
FCS Software Solutions' ROIC % of 4.23% can be compared against companies in the Software industry. The industry median ROIC % is 3.05. FCS Software Solutions' value of 4.23% is 38.9% 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 3.05, based on 2,828 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. FCS Software Solutions's current ROIC % of 4.23% is 38.9% 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 FCS Software Solutions and its competitors. For the Software industry, the median ROIC % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FCS Software Solutions's current ROIC % is 4.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FCS Software Solutions stock overvalued right now?
Based on GuruFocus' analysis, FCS Software Solutions (NSE:FCSSOFT) is currently considered Possible Value Trap. The stock's GF Value™ is ₹5.85, compared to a current price of ₹1.50 — trading 74.4% below its estimated fair value. The current ROIC % is 4.23% and 38.9% above the Software industry median of 3.05. FCS Software Solutions' overall GF Score™ is 62/100 with 2 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 FCS Software Solutions (NSE:FCSSOFT), the current ROIC % is 4.23% 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 FCS Software Solutions (NSE:FCSSOFT) Overvalued in 2026?
Based on GuruFocus' analysis, FCS Software Solutions stock appears to be undervalued.
The current stock price of ₹1.50 is trading 74.4% below its estimated GF Value™ of ₹5.85.
GuruFocus considers FCS Software Solutions to be Possible Value Trap.
Key valuation signals for NSE:FCSSOFT:
ROIC %: 4.23%
GF Value™: ₹5.85 vs. price of ₹1.50 (74.4% below fair value)
Industry Position: 38.9% above the Software median
No single metric tells the full story. See the NSE:FCSSOFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FCS Software Solutions Ltd is engaged in providing a range of IT and business services, engineering, and product & platform services. Its business consists of software development and marketing, and providing support services mainly for corporate business entities in the BPO sectors, software development, e-learning service, and other related Information Technology Enabled Services. Its segments are IT & IT Enable Services, Education/E-Learning Services, and Leasing Services. The Company also carries business of leasing or letting out all kinds of immovable property, including IT Infrastructural property, whether freehold, leasehold, to any type of person. The geographical segments include India and the USA.
62GF Score
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