ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Redsense Medical AB's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 15.16%.
As of today (2026-06-27), Redsense Medical AB's WACC % is 3.30%. Redsense Medical AB's ROIC % is -12.19% (calculated using TTM income statement data).
Redsense Medical AB earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Redsense Medical AB (OTCPK:RDSNF) 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, Redsense Medical AB's WACC % is 3.30%. Redsense Medical AB's ROIC % is -12.19% (calculated using TTM income statement data).
Redsense Medical AB 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.
Redsense Medical AB ROIC % Related Terms
Redsense Medical AB ROIC % Historical Data
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The historical data trend for Redsense Medical AB'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 Medical Devices subindustry, Redsense Medical AB'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.
Redsense Medical AB ROIC % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Redsense Medical AB's ROIC % distribution charts can be found below:
* The bar in red indicates where Redsense Medical AB'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.
Redsense Medical AB (RDSNF) has a ROIC % of 15.16% 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 Redsense Medical AB and its competitors.
Is Redsense Medical AB's ROIC % too high?
Redsense Medical AB's current ROIC % is 15.16%. The Medical Devices & Instruments industry median ROIC % is 1.26. Redsense Medical AB's value of 15.16% is 1103.2% above this industry median. Overall, Redsense Medical AB has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does Redsense Medical AB's ROIC % compare to ABT and SYK?
Redsense Medical AB's ROIC % of 15.16% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROIC % is 1.26. Redsense Medical AB's value of 15.16% is 1103.2% 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 Medical Devices & Instruments company?
The median ROIC % among Medical Devices & Instruments companies is 1.26, based on 847 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. Redsense Medical AB's current ROIC % of 15.16% is 1103.2% 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 Redsense Medical AB and its competitors. For the Medical Devices & Instruments industry, the median ROIC % is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redsense Medical AB's current ROIC % is 15.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redsense Medical AB stock overvalued right now?
Redsense Medical AB (RDSNF) has a current ROIC % of 15.16%. The stock's GF Value™ is $0.77, compared to a current price of $0.51 — trading 33.8% below its estimated fair value. The current ROIC % is 15.16% and 1103.2% above the Medical Devices & Instruments industry median of 1.26. Redsense Medical AB's overall GF Score™ is 54/100 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 Redsense Medical AB (RDSNF), the current ROIC % is 15.16% 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 Redsense Medical AB (RDSNF) Overvalued in 2026?
Based on GuruFocus' analysis, Redsense Medical AB stock appears to be undervalued.
The current stock price of $0.51 is trading 33.8% below its estimated GF Value™ of $0.77.
Key valuation signals for RDSNF:
ROIC %: 15.16%
GF Value™: $0.77 vs. price of $0.51 (33.8% below fair value)
Industry Position: 1103.2% above the Medical Devices & Instruments median
No single metric tells the full story. See the RDSNF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Redsense Medical AB manufactures and sells blood loss detection devices in Sweden. The company has developed a monitoring system that can detect the first sign of a blood leak using patented fiber optic technology. The products of the company include Alarm Unit, Venous Needle Patch, Sensor Patch, and others.
54GF Score
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