ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Pacific Health Care Organization's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 59.92%.
As of today (2026-06-25), Pacific Health Care Organization's WACC % is 5.13%. Pacific Health Care Organization's ROIC % is 81.88% (calculated using TTM income statement data).
Pacific Health Care Organization 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.
Pacific Health Care Organization (OTCPK:PFHO) 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, Pacific Health Care Organization's WACC % is 5.13%. Pacific Health Care Organization's ROIC % is 81.88% (calculated using TTM income statement data).
Pacific Health Care Organization 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.
Pacific Health Care Organization ROIC % Related Terms
Pacific Health Care Organization 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 Healthcare Plans subindustry, Pacific Health Care Organization'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.
Pacific Health Care Organization ROIC % vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Pacific Health Care Organization's ROIC % distribution charts can be found below:
* The bar in red indicates where Pacific Health Care Organization's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (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.
Pacific Health Care Organization (PFHO) has a ROIC % of 59.92% 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 Pacific Health Care Organization and its competitors.
Is Pacific Health Care Organization's ROIC % too high?
Pacific Health Care Organization's current ROIC % is 59.92%. The Healthcare Plans industry median ROIC % is 6.46. Pacific Health Care Organization's value of 59.92% is 827.6% above this industry median. Overall, Pacific Health Care Organization has a GF Score™ of 47/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pacific Health Care Organization's ROIC % compare to UNH and CVS?
Pacific Health Care Organization's ROIC % of 59.92% can be compared against companies in the Healthcare Plans industry. The industry median ROIC % is 6.46. Pacific Health Care Organization's value of 59.92% is 827.6% 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 Healthcare Plans company?
The median ROIC % among Healthcare Plans companies is 6.46, based on 17 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. Pacific Health Care Organization's current ROIC % of 59.92% is 827.6% 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 Pacific Health Care Organization and its competitors. For the Healthcare Plans industry, the median ROIC % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pacific Health Care Organization's current ROIC % is 59.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pacific Health Care Organization stock overvalued right now?
Based on GuruFocus' analysis, Pacific Health Care Organization (PFHO) is currently considered Fairly Valued. The stock's GF Value™ is $0.93, compared to a current price of $0.85 — trading 8.6% below its estimated fair value. The current ROIC % is 59.92% and 827.6% above the Healthcare Plans industry median of 6.46. Pacific Health Care Organization's overall GF Score™ is 47/100 with 1 warning sign 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 Pacific Health Care Organization (PFHO), the current ROIC % is 59.92% 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 Pacific Health Care Organization (PFHO) Overvalued in 2026?
Based on GuruFocus' analysis, Pacific Health Care Organization stock appears to be undervalued.
The current stock price of $0.85 is trading 8.6% below its estimated GF Value™ of $0.93.
GuruFocus considers Pacific Health Care Organization to be Fairly Valued.
Key valuation signals for PFHO:
ROIC %: 59.92%
GF Value™: $0.93 vs. price of $0.85 (8.6% below fair value)
Industry Position: 827.6% above the Healthcare Plans median
No single metric tells the full story. See the PFHO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pacific Health Care Organization Business Description
Pacific Health Care Organization Inc is a workers' compensation cost containment specialist providing a range of services principally to California employers and claims administrators. The company offers an integrated and layered array of complementary business solutions that enable its customers to manage their workers' compensation-related healthcare administration costs. Its services include two HCOs, MPNs, medical case management, utilization review, medical bill review, workers' compensation carve-outs and Medicare set-aside services. It also provides lien representation and witness testimony, ancillary to other services.
47GF Score
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