ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Radius Residential Care's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.83%.
As of today (2026-06-29), Radius Residential Care's WACC % is 2.18%. Radius Residential Care's ROIC % is 3.63% (calculated using TTM income statement data).
Radius Residential Care 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.
Radius Residential Care (NZSE:RAD) 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, Radius Residential Care's WACC % is 2.18%. Radius Residential Care's ROIC % is 3.63% (calculated using TTM income statement data).
Radius Residential Care 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.
* 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 Medical Care Facilities subindustry, Radius Residential Care'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.
Radius Residential Care ROIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Radius Residential Care's ROIC % distribution charts can be found below:
* The bar in red indicates where Radius Residential Care'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.
Radius Residential Care (NZSE:RAD) has a ROIC % of 2.83% 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 Radius Residential Care and its competitors.
Is Radius Residential Care's ROIC % too high?
Radius Residential Care's current ROIC % is 2.83%. The Healthcare Providers & Services industry median ROIC % is 3.08. Radius Residential Care's value of 2.83% is 8% below this industry median. Overall, Radius Residential Care has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Radius Residential Care's ROIC % compare to HCA and THC?
Radius Residential Care's ROIC % of 2.83% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.08. Radius Residential Care's value of 2.83% is 8% 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 Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.08, based on 668 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. Radius Residential Care's current ROIC % of 2.83% is 8% 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 Radius Residential Care and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Radius Residential Care's current ROIC % is 2.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Radius Residential Care stock overvalued right now?
Based on GuruFocus' analysis, Radius Residential Care (NZSE:RAD) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$0.29, compared to a current price of NZ$0.38 — trading 31% above its estimated fair value. The current ROIC % is 2.83% and 8% below the Healthcare Providers & Services industry median of 3.08. Radius Residential Care's overall GF Score™ is 40/100 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 Radius Residential Care (NZSE:RAD), the current ROIC % is 2.83% 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 Radius Residential Care (NZSE:RAD) Overvalued in 2026?
Based on GuruFocus' analysis, Radius Residential Care stock appears to be overvalued.
The current stock price of NZ$0.38 is trading 31% above its estimated GF Value™ of NZ$0.29.
GuruFocus considers Radius Residential Care to be Significantly Overvalued.
Key valuation signals for NZSE:RAD:
ROIC %: 2.83%
GF Value™: NZ$0.29 vs. price of NZ$0.38 (31% above fair value)
Industry Position: 8% below the Healthcare Providers & Services median
No single metric tells the full story. See the NZSE:RAD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Radius Residential Care Ltd is a health and aged care provider for elderly and disabled people. The company provides residential care, hospital care, dementia care, respite care, and palliative care. Additionally, the company offers Young Disabled Care services for those under 65 who require assistance with self-care, mobility, and/or communication. It has one operating segment, being the provision of aged care in New Zealand.
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