ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Ocean Power Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2026 was -104.20%.
As of today (2026-06-26), Ocean Power Technologies's WACC % is 23.08%. Ocean Power Technologies's ROIC % is -115.21% (calculated using TTM income statement data).
Ocean Power Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Ocean Power Technologies (AMEX:OPTT) 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, Ocean Power Technologies's WACC % is 23.08%. Ocean Power Technologies's ROIC % is -115.21% (calculated using TTM income statement data).
Ocean Power Technologies 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 Specialty Industrial Machinery subindustry, Ocean Power Technologies'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.
Ocean Power Technologies ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ocean Power Technologies's ROIC % distribution charts can be found below:
* The bar in red indicates where Ocean Power Technologies's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jan. 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.
Ocean Power Technologies (OPTT) has a ROIC % of -104.20% as of Jan. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Ocean Power Technologies and its competitors.
Is Ocean Power Technologies' ROIC % too high?
Ocean Power Technologies' current ROIC % is -104.20%. Overall, Ocean Power Technologies has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ocean Power Technologies' ROIC % compare to BWEN and HURC?
Ocean Power Technologies' ROIC % of -104.20% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.23. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.23, based on 3,040 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. 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 Ocean Power Technologies and its competitors. For the Industrial Products industry, the median ROIC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ocean Power Technologies's current ROIC % is -104.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ocean Power Technologies stock overvalued right now?
Based on GuruFocus' analysis, Ocean Power Technologies (OPTT) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.14, compared to a current price of $0.26 — trading 82.8% above its estimated fair value. The current ROIC % is -104.20%. Ocean Power Technologies' overall GF Score™ is 43/100 with 8 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 Ocean Power Technologies (OPTT), the current ROIC % is -104.20% as of Jan. 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 Ocean Power Technologies (OPTT) Overvalued in 2026?
Based on GuruFocus' analysis, Ocean Power Technologies stock appears to be overvalued.
The current stock price of $0.26 is trading 82.8% above its estimated GF Value™ of $0.14.
GuruFocus considers Ocean Power Technologies to be Significantly Overvalued.
Key valuation signals for OPTT:
ROIC %: -104.20%
GF Value™: $0.14 vs. price of $0.26 (82.8% above fair value)
No single metric tells the full story. See the OPTT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ocean Power Technologies Inc provides intelligent maritime solutions and services that enable safer, cleaner, and more productive ocean operations for the defense and security, oil and gas, science and research, and offshore wind markets. It provides ocean data collection and reporting, marine power, offshore communications, and Maritime Domain Awareness System (MDAS) products, integrated solutions, and consulting services. The company offers its products and services to a wide range of customers, including those in government and offshore energy, oil and gas, construction, wind power, and other industries. The company has operations in North and South America, Europe, Asia and Australia.
43GF Score
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