ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. GSM Foils's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 21.56%.
As of today (2026-07-04), GSM Foils's WACC % is 12.68%. GSM Foils's ROIC % is 24.96% (calculated using TTM income statement data).
GSM Foils generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
GSM Foils (NSE:GSMFOILS) 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, GSM Foils's WACC % is 12.68%. GSM Foils's ROIC % is 24.96% (calculated using TTM income statement data).
GSM Foils generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
GSM Foils ROIC % Related Terms
GSM Foils ROIC % Historical Data
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The historical data trend for GSM Foils'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.
NSE:GSMFOILS vs ISRG, BDX, MDLN: ROIC % Comparison
For the Medical Instruments & Supplies subindustry, GSM Foils'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.
GSM Foils ROIC % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, GSM Foils's ROIC % distribution charts can be found below:
* The bar in red indicates where GSM Foils'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.
GSM Foils (NSE:GSMFOILS) has a ROIC % of 21.56% 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 GSM Foils and its competitors.
Is GSM Foils' ROIC % too high?
GSM Foils' current ROIC % is 21.56%. The Medical Devices & Instruments industry median ROIC % is 1.26. GSM Foils' value of 21.56% is 1617.9% above this industry median. Overall, GSM Foils has a GF Score™ of 42/100, reflecting its overall financial health beyond just this single metric.
How does GSM Foils' ROIC % compare to ISRG and BDX?
GSM Foils' ROIC % of 21.56% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROIC % is 1.26. GSM Foils' value of 21.56% is 1617.9% 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 Medical Devices & Instruments company?
The median ROIC % among Medical Devices & Instruments companies is 1.26, based on 846 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. GSM Foils's current ROIC % of 21.56% is 1617.9% 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 GSM Foils and its competitors. For the Medical Devices & Instruments industry, the median ROIC % is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GSM Foils's current ROIC % is 21.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GSM Foils stock overvalued right now?
GSM Foils (NSE:GSMFOILS) has a current ROIC % of 21.56%. The current ROIC % is 21.56% and 1617.9% above the Medical Devices & Instruments industry median of 1.26. GSM Foils' overall GF Score™ is 42/100 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 GSM Foils (NSE:GSMFOILS), the current ROIC % is 21.56% 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.
GSM Foils Ltd is engaged in the business of manufacturing Blister Foils and Aluminium Pharma Foils (also known as Strip Foils) which is used in packing of pharmaceutical medicines which includes capsules and tablets both. It products includes plain and printed aluminum foils and strip foils along with alu alu base foils and it ranges from 0.020/ 0.025/ 0.030/ 0.040 micron for coated /ploy laminated/ blister/ strip printed foils. Aluminium Foil or Strip Foils are one of the packaging options for highly sensitive pharmaceutical products that protects the medicines from oxygen, moisture, and other environmental influences. Blister Foils are commonly used as unit-dose packaging for pharmaceutical tablets.
42GF Score
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