ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Millenniumpthorne Hotels New Zealand's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 2.71%.
As of today (2026-07-01), Millenniumpthorne Hotels New Zealand's WACC % is 4.92%. Millenniumpthorne Hotels New Zealand's ROIC % is 2.11% (calculated using TTM income statement data).
Millenniumpthorne Hotels New Zealand earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Millenniumpthorne Hotels New Zealand (NZSE:MCK) 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, Millenniumpthorne Hotels New Zealand's WACC % is 4.92%. Millenniumpthorne Hotels New Zealand's ROIC % is 2.11% (calculated using TTM income statement data).
Millenniumpthorne Hotels New Zealand 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.
Millenniumpthorne Hotels New Zealand ROIC % Related Terms
Millenniumpthorne Hotels New Zealand 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 Lodging subindustry, Millenniumpthorne Hotels New Zealand'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.
Millenniumpthorne Hotels New Zealand ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Millenniumpthorne Hotels New Zealand's ROIC % distribution charts can be found below:
* The bar in red indicates where Millenniumpthorne Hotels New Zealand's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Millenniumpthorne Hotels New Zealand (NZSE:MCK) has a ROIC % of 2.71% 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 Millenniumpthorne Hotels New Zealand and its competitors.
Is Millenniumpthorne Hotels New Zealand's ROIC % too high?
Millenniumpthorne Hotels New Zealand's current ROIC % is 2.71%. The Travel & Leisure industry median ROIC % is 3.77. Millenniumpthorne Hotels New Zealand's value of 2.71% is 28% below this industry median. Overall, Millenniumpthorne Hotels New Zealand has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Millenniumpthorne Hotels New Zealand's ROIC % compare to MAR and HLT?
Millenniumpthorne Hotels New Zealand's ROIC % of 2.71% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.77. Millenniumpthorne Hotels New Zealand's value of 2.71% is 28% 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 a Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.77, based on 834 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. Millenniumpthorne Hotels New Zealand's current ROIC % of 2.71% is 28% 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 Millenniumpthorne Hotels New Zealand and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Millenniumpthorne Hotels New Zealand's current ROIC % is 2.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Millenniumpthorne Hotels New Zealand stock overvalued right now?
Based on GuruFocus' analysis, Millenniumpthorne Hotels New Zealand (NZSE:MCK) is currently considered Modestly Overvalued. The stock's GF Value™ is NZ$2.68, compared to a current price of NZ$3.35 — trading 25% above its estimated fair value. The current ROIC % is 2.71% and 28% below the Travel & Leisure industry median of 3.77. Millenniumpthorne Hotels New Zealand's overall GF Score™ is 68/100 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 Millenniumpthorne Hotels New Zealand (NZSE:MCK), the current ROIC % is 2.71% 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 Millenniumpthorne Hotels New Zealand (NZSE:MCK) Overvalued in 2026?
Based on GuruFocus' analysis, Millenniumpthorne Hotels New Zealand stock appears to be overvalued.
The current stock price of NZ$3.35 is trading 25% above its estimated GF Value™ of NZ$2.68.
GuruFocus considers Millenniumpthorne Hotels New Zealand to be Modestly Overvalued.
Key valuation signals for NZSE:MCK:
ROIC %: 2.71%
GF Value™: NZ$2.68 vs. price of NZ$3.35 (25% above fair value)
Industry Position: 28% below the Travel & Leisure median
No single metric tells the full story. See the NZSE:MCK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Millenniumpthorne Hotels New Zealand Business Description
Millennium & Copthorne Hotels New Zealand Ltd is engaged in the ownership and operation of hotels in New Zealand. The Group is also involved in the development and sale of residential land in New Zealand; investment properties comprising commercial warehousing and retail shops in New Zealand; and the development and sale of residential units in Australia. Its operating segments are: Hotel operations, Residential land development, Investment property, and Residential and commercial property development. Maximum revenue is generated from the Hotel operations segment, which includes income from the ownership and management of hotels. Geographically, the Group generates maximum revenue from New Zealand, and the rest from Australia.
68GF Score
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