ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Papa Medical's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2025 was 27.52%.
As of today (2026-06-27), Papa Medical's WACC % is 0.00%. Papa Medical's ROIC % is 0.00% (calculated using TTM income statement data).
Papa Medical earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Papa Medical (NAS:PAPA) 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, Papa Medical's WACC % is 0.00%. Papa Medical's ROIC % is 0.00% (calculated using TTM income statement data).
Papa Medical 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.
Papa Medical ROIC % Related Terms
Papa Medical ROIC % Historical Data
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The historical data trend for Papa Medical'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.
For the Tobacco subindustry, Papa Medical'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.
Papa Medical ROIC % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Papa Medical's ROIC % distribution charts can be found below:
* The bar in red indicates where Papa Medical's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 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.
Papa Medical (PAPA) has a ROIC % of 27.52% as of Mar. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Papa Medical and its competitors.
Is Papa Medical's ROIC % too high?
Papa Medical's current ROIC % is 27.52%. The Tobacco Products industry median ROIC % is 8.99. Papa Medical's value of 27.52% is 206.1% above this industry median.
How does Papa Medical's ROIC % compare to ?
Papa Medical's ROIC % of 27.52% can be compared against companies in the Tobacco Products industry. The industry median ROIC % is 8.99. Papa Medical's value of 27.52% is 206.1% 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 Tobacco Products company?
The median ROIC % among Tobacco Products companies is 8.99, based on 48 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. Papa Medical's current ROIC % of 27.52% is 206.1% 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 Papa Medical and its competitors. For the Tobacco Products industry, the median ROIC % is 8.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Papa Medical's current ROIC % is 27.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Papa Medical stock overvalued right now?
Papa Medical (PAPA) has a current ROIC % of 27.52%. The current ROIC % is 27.52% and 206.1% above the Tobacco Products industry median of 8.99. 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 Papa Medical (PAPA), the current ROIC % is 27.52% as of Mar. 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.
Papa Medical Inc is the first end-to-end cannabis dosing solution provider in the U.S. that possesses the medical atomization or nebulizing background and sells nebulizers. The company deeply engages in key activities in the cannabis and consuming E-vapors industry, from research and development, formulation design, e-liquid production, and e-liquid filling to e-liquid co-packing services. It is engaged in the research and development, design, commercialization, sales, marketing and distribution of branded e-cigarettes and cannabis E-vapors.
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