ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Rain Enhancement Technologies Holdco's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -62.41%.
As of today (2026-06-27), Rain Enhancement Technologies Holdco's WACC % is 8.82%. Rain Enhancement Technologies Holdco's ROIC % is -96.77% (calculated using TTM income statement data).
Rain Enhancement Technologies Holdco earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Rain Enhancement Technologies Holdco's WACC % is 8.82%. Rain Enhancement Technologies Holdco's ROIC % is -96.77% (calculated using TTM income statement data).
Rain Enhancement Technologies Holdco 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.
Rain Enhancement Technologies Holdco ROIC % Related Terms
Rain Enhancement Technologies Holdco 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.
Rain Enhancement Technologies Holdco ROIC % Chart
Rain Enhancement Technologies Holdco Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
ROIC %
0.00
-55.52
-175.87
-108.18
Rain Enhancement Technologies Holdco Quarterly Data
For the Pollution & Treatment Controls subindustry, Rain Enhancement Technologies Holdco'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.
Rain Enhancement Technologies Holdco ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Rain Enhancement Technologies Holdco's ROIC % distribution charts can be found below:
* The bar in red indicates where Rain Enhancement Technologies Holdco'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.
Rain Enhancement Technologies Holdco (RAIN) has a ROIC % of -62.41% 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 Rain Enhancement Technologies Holdco and its competitors.
Is Rain Enhancement Technologies Holdco's ROIC % too high?
Rain Enhancement Technologies Holdco's current ROIC % is -62.41%. Overall, Rain Enhancement Technologies Holdco has a GF Score™ of 2/100, reflecting its overall financial health beyond just this single metric.
How does Rain Enhancement Technologies Holdco's ROIC % compare to TOMZ and BNET?
Rain Enhancement Technologies Holdco's ROIC % of -62.41% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.23. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.23, based on 3,040 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 Rain Enhancement Technologies Holdco and its competitors. For the Industrial Products industry, the median ROIC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rain Enhancement Technologies Holdco's current ROIC % is -62.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rain Enhancement Technologies Holdco stock overvalued right now?
Rain Enhancement Technologies Holdco (RAIN) has a current ROIC % of -62.41%. The current ROIC % is -62.41%. Rain Enhancement Technologies Holdco's overall GF Score™ is 2/100 with 3 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 Rain Enhancement Technologies Holdco (RAIN), the current ROIC % is -62.41% 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.
Rain Enhancement Technologies Holdco Business Description
Rain Enhancement Technologies Holdco Inc operates to develop, manufacture, and commercialize ionization rainfall generation technology. This weather modification technology seeks to provide reliable access to water and transform business, society, and the planet. The Company operates and manages the business as one reportable and operating segment, which is the business of developing, manufacturing, and commercializing ionization AEI technology.
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