ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Red Metal Resources's annualized return on invested capital (ROIC %) for the quarter that ended in Oct. 2025 was -19.92%.
As of today (2026-06-25), Red Metal Resources's WACC % is 5.81%. Red Metal Resources's ROIC % is -41.49% (calculated using TTM income statement data).
Red Metal Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Red Metal Resources (OTCPK:RMESF) 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, Red Metal Resources's WACC % is 5.81%. Red Metal Resources's ROIC % is -41.49% (calculated using TTM income statement data).
Red Metal Resources 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.
Red Metal Resources ROIC % Related Terms
Red Metal Resources ROIC % Historical Data
* Premium members only.
The historical data trend for Red Metal Resources'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 Other Industrial Metals & Mining subindustry, Red Metal Resources'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.
Red Metal Resources ROIC % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Red Metal Resources's ROIC % distribution charts can be found below:
* The bar in red indicates where Red Metal Resources's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Oct. 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.
Red Metal Resources (RMESF) has a ROIC % of -19.92% as of Oct. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Red Metal Resources and its competitors.
Is Red Metal Resources' ROIC % too high?
Red Metal Resources' current ROIC % is -19.92%.
How does Red Metal Resources' ROIC % compare to competitors?
Red Metal Resources' ROIC % of -19.92% can be compared against companies in the Metals & Mining industry. 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 Metals & Mining company?
A good ROIC % depends on the Metals & Mining industry context. 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 Red Metal Resources and its competitors. Red Metal Resources's current ROIC % is -19.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red Metal Resources stock overvalued right now?
Red Metal Resources (RMESF) has a current ROIC % of -19.92%. The current ROIC % is -19.92%. 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 Red Metal Resources (RMESF), the current ROIC % is -19.92% as of Oct. 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.
Red Metal Resources Ltd is involved in acquiring and exploring mineral properties in Chile. The company's interest in exploration and evaluation assets consisted of three active copper-gold projects on two properties, namely the Farellon and Perth Projects, both located on the Carrizal Property, and the Mateo Project, located on the Mateo Property. It operates in Chile and Canada.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
RMESF has been successfully added to your 