ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Argent Biopharma's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -74.64%.
As of today (2026-06-25), Argent Biopharma's WACC % is 2.54%. Argent Biopharma's ROIC % is -87.37% (calculated using TTM income statement data).
Argent Biopharma earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Argent Biopharma (OTCPK:RGTLF) 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, Argent Biopharma's WACC % is 2.54%. Argent Biopharma's ROIC % is -87.37% (calculated using TTM income statement data).
Argent Biopharma 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.
Argent Biopharma ROIC % Related Terms
Argent Biopharma ROIC % Historical Data
* Premium members only.
The historical data trend for Argent Biopharma'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 Drug Manufacturers - Specialty & Generic subindustry, Argent Biopharma'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.
Argent Biopharma ROIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Argent Biopharma's ROIC % distribution charts can be found below:
* The bar in red indicates where Argent Biopharma'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.
Argent Biopharma (RGTLF) has a ROIC % of -74.64% 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 Argent Biopharma and its competitors.
Is Argent Biopharma's ROIC % too high?
Argent Biopharma's current ROIC % is -74.64%.
How does Argent Biopharma's ROIC % compare to ZTS and UTHR?
Argent Biopharma's ROIC % of -74.64% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.44. 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 Drug Manufacturers company?
The median ROIC % among Drug Manufacturers companies is 4.44, based on 985 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 Argent Biopharma and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Argent Biopharma's current ROIC % is -74.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Argent Biopharma stock overvalued right now?
Based on GuruFocus' analysis, Argent Biopharma (RGTLF) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.02, compared to a current price of $0.03 — trading 25% above its estimated fair value. The current ROIC % is -74.64%. 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 Argent Biopharma (RGTLF), the current ROIC % is -74.64% 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.
Argent Biopharma Ltd is a clinical-stage biopharmaceutical company pioneering nano-engineered therapeutics that reset the balance between the nervous and immune systems. Its assets, CannEpil and CimetrA, target immune dysregulation in drug-resistant epilepsy and cytokine-driven inflammatory disorders, respectively. The products of the company include CannEpil for refractory epilepsy and cerebral palsy, CimetrA for acute lung injury and ARDS, and CogniCann for enhancing the quality of life in dementia and Alzheimer's patients, with additional treatments in development, and others. Its geographic areas are Malta, Slovenia and others, and Australia. The group generates the majority of its revenue from Slovenia and others.
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