ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. CPI Card Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 9.19%.
As of today (2026-06-25), CPI Card Group's WACC % is 9.84%. CPI Card Group's ROIC % is 11.25% (calculated using TTM income statement data).
CPI Card Group 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.
CPI Card Group (NAS:PMTS) 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, CPI Card Group's WACC % is 9.84%. CPI Card Group's ROIC % is 11.25% (calculated using TTM income statement data).
CPI Card Group 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.
CPI Card Group ROIC % Related Terms
CPI Card Group ROIC % Historical Data
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The historical data trend for CPI Card Group'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 Credit Services subindustry, CPI Card Group'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.
CPI Card Group ROIC % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, CPI Card Group's ROIC % distribution charts can be found below:
* The bar in red indicates where CPI Card Group'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.
CPI Card Group (PMTS) has a ROIC % of 9.19% 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 CPI Card Group and its competitors.
Is CPI Card Group's ROIC % too high?
CPI Card Group's current ROIC % is 9.19%. The Credit Services industry median ROIC % is 1.98. CPI Card Group's value of 9.19% is 364.1% above this industry median. Overall, CPI Card Group has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CPI Card Group's ROIC % compare to XYF and ANTA?
CPI Card Group's ROIC % of 9.19% can be compared against companies in the Credit Services industry. The industry median ROIC % is 1.98. CPI Card Group's value of 9.19% is 364.1% 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 Credit Services company?
The median ROIC % among Credit Services companies is 1.98, based on 417 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. CPI Card Group's current ROIC % of 9.19% is 364.1% 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 CPI Card Group and its competitors. For the Credit Services industry, the median ROIC % is 1.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CPI Card Group's current ROIC % is 9.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CPI Card Group stock overvalued right now?
Based on GuruFocus' analysis, CPI Card Group (PMTS) is currently considered Modestly Undervalued. The stock's GF Value™ is $24.97, compared to a current price of $19.50 — trading 21.9% below its estimated fair value. The current ROIC % is 9.19% and 364.1% above the Credit Services industry median of 1.98. CPI Card Group's overall GF Score™ is 72/100 with 4 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 CPI Card Group (PMTS), the current ROIC % is 9.19% 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 CPI Card Group (PMTS) Overvalued in 2026?
Based on GuruFocus' analysis, CPI Card Group stock appears to be undervalued.
The current stock price of $19.50 is trading 21.9% below its estimated GF Value™ of $24.97.
GuruFocus considers CPI Card Group to be Modestly Undervalued.
Key valuation signals for PMTS:
ROIC %: 9.19%
GF Value™: $24.97 vs. price of $19.50 (21.9% below fair value)
Industry Position: 364.1% above the Credit Services median
No single metric tells the full story. See the PMTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CPI Card Group Inc is a payment technology company engaged in providing financial payment card solutions and services. It offers credit, debit, and prepaid cards. The business segments of the group are Debit and Credit segment, which principally produce secure debit and credit cards and provide card services for U.S. card-issuing financial institutions, including personalization, instant issuance and other payment solutions such as digital push provisioning for mobile wallets; Prepaid Debit, which provides secure packaging solutions, Prepaid Debit Cards, and other integrated prepaid card services to prepaid program managers in the U.S.; and other: principally corporate expenses. The firm generates key revenue from Debit and Credit segment.
72GF Score
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