ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Otg Exp's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2014 was -3.09%.
As of today (2026-06-26), Otg Exp's WACC % is 0.00%. Otg Exp's ROIC % is 0.00% (calculated using TTM income statement data).
Otg Exp earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Otg Exp (NAS:OTG) 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, Otg Exp's WACC % is 0.00%. Otg Exp's ROIC % is 0.00% (calculated using TTM income statement data).
Otg Exp 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.
Otg Exp ROIC % Related Terms
Otg Exp ROIC % Historical Data
* Premium members only.
The historical data trend for Otg Exp'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.
Otg Exp ROIC % Chart
Otg Exp Annual Data
Trend
Dec13
Dec14
ROIC %
-3.44
-3.09
Otg Exp Semi-Annual Data
Dec13
Dec14
ROIC %
-3.44
-3.09
OTG vs IRGTQ, CDIF, STRZ: ROIC % Comparison
For the Restaurants subindustry, Otg Exp'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.
Otg Exp ROIC % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Otg Exp's ROIC % distribution charts can be found below:
* The bar in red indicates where Otg Exp's ROIC % falls into.
Note:
The Operating Income data used here is one times the annual (Dec. 2014) 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.
Otg Exp (OTG) has a ROIC % of -3.09% as of Dec. 2014. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Otg Exp and its competitors.
Is Otg Exp's ROIC % too high?
Otg Exp's current ROIC % is -3.09%.
How does Otg Exp's ROIC % compare to IRGTQ and CDIF?
Otg Exp's ROIC % of -3.09% can be compared against companies in the Restaurants industry. The industry median ROIC % is 4.21. 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 Restaurants company?
The median ROIC % among Restaurants companies is 4.21, based on 359 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 Otg Exp and its competitors. For the Restaurants industry, the median ROIC % is 4.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otg Exp's current ROIC % is -3.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otg Exp stock overvalued right now?
Otg Exp (OTG) has a current ROIC % of -3.09%. The current ROIC % is -3.09%. 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 Otg Exp (OTG), the current ROIC % is -3.09% as of Dec. 2014. 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.
Otg Exp Inc was incorporated on October 27, 2015 in Delaware. It is a travel restaurateur with operations in North America with more than 220 locations in 23 terminals across 10 airports. The Company designs, develops, operates and manages the terminal concessions programs, which refers to the programs where it either operates all of the F&B concessions or F&B and N&G concessions or have management authority over the concession program or terminal. The Company operates in the United States and Canada. It has relationships with manufacturers that deliver products directly to its concession locations. OTG's customers are comprised of two distinct groups. The first group includes airlines, such as United, Delta and JetBlue, airport operators and concession program managers. The other commercial enterprises include car rental companies, hotel chains and online shopping sites. The second group consists of the airport users, which include passengers, airline and airport employees. It competes with concession program companies, such as HMSHost Corporation, SSP Group and Hudson Group, as well as other regional and local concessionaires. The Company is subject to federal, state and local government regulations, including those relating to, among others, public health and safety, zoning and fire codes. Failure to obtain or retain food service, health permit or other licenses and approvals would adversely affect its operations.
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