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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. PGG Wrightson's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 9.91%.
As of today (2026-07-25), PGG Wrightson's WACC % is 5.62%. PGG Wrightson's ROIC % is -15.93% (calculated using TTM income statement data).
PGG Wrightson earns returns that do not match up to its cost of capital. It will destroy value as it grows.
PGG Wrightson (OTCPK:PGWFF) 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, PGG Wrightson's WACC % is 5.62%. PGG Wrightson's ROIC % is -15.93% (calculated using TTM income statement data).
PGG Wrightson 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.
PGG Wrightson ROIC % Related Terms
PGG Wrightson ROIC % Historical Data
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The historical data trend for PGG Wrightson'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 Conglomerates subindustry, PGG Wrightson'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.
PGG Wrightson ROIC % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, PGG Wrightson's ROIC % distribution charts can be found below:
* The bar in red indicates where PGG Wrightson's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 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.
PGG Wrightson (PGWFF) has a ROIC % of 9.91% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on PGG Wrightson and its competitors.
Is PGG Wrightson's ROIC % too high?
PGG Wrightson's current ROIC % is 9.91%. The Conglomerates industry median ROIC % is 2.81. PGG Wrightson's value of 9.91% is 252.7% above this industry median. Overall, PGG Wrightson has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does PGG Wrightson's ROIC % compare to HON and MMM?
PGG Wrightson's ROIC % of 9.91% can be compared against companies in the Conglomerates industry. The industry median ROIC % is 2.81. PGG Wrightson's value of 9.91% is 252.7% 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 Conglomerates company?
The median ROIC % among Conglomerates companies is 2.81, based on 555 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. PGG Wrightson's current ROIC % of 9.91% is 252.7% 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 PGG Wrightson and its competitors. For the Conglomerates industry, the median ROIC % is 2.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PGG Wrightson's current ROIC % is 9.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PGG Wrightson stock overvalued right now?
PGG Wrightson (PGWFF) has a current ROIC % of 9.91%. The stock's GF Value™ is $1.54, compared to a current price of $1.35 — trading 12.3% below its estimated fair value. The current ROIC % is 9.91% and 252.7% above the Conglomerates industry median of 2.81. PGG Wrightson's overall GF Score™ is 75/100 with 5 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 PGG Wrightson (PGWFF), the current ROIC % is 9.91% as of Dec. 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.
Is PGG Wrightson (PGWFF) Overvalued in 2026?
Based on GuruFocus' analysis, PGG Wrightson stock appears to be undervalued.
The current stock price of $1.35 is trading 12.3% below its estimated GF Value™ of $1.54.
Key valuation signals for PGWFF:
ROIC %: 9.91%
GF Value™: $1.54 vs. price of $1.35 (12.3% below fair value)
Industry Position: 252.7% above the Conglomerates median
No single metric tells the full story. See the PGWFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PGG Wrightson Ltd is an agriculture solutions provider predominantly in New Zealand. The company's reportable segments are, Agency, Retail & Water and Other. The company generates maximum revenue from the Retail and Water segment which includes the rural supplies and fruitfed retail operations, PGG Wrightson Water, PGW Consulting, Agritrade, and ancillary sales support, supply chain, and marketing functions. The Agency segment includes rural Livestock trading activities, export livestock, wool, insurance, real estate and finance commission. The company principally operates in New Zealand.
75GF Score
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