ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Renew Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 12.22%.
As of today (2026-06-27), Renew Holdings's WACC % is 7.36%. Renew Holdings's ROIC % is 12.61% (calculated using TTM income statement data).
Renew Holdings 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.
Renew Holdings (OTCPK:RNWHF) 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, Renew Holdings's WACC % is 7.36%. Renew Holdings's ROIC % is 12.61% (calculated using TTM income statement data).
Renew Holdings 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.
Renew Holdings ROIC % Related Terms
Renew Holdings ROIC % Historical Data
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The historical data trend for Renew Holdings'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 Engineering & Construction subindustry, Renew Holdings'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.
Renew Holdings ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Renew Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Renew Holdings's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Renew Holdings (RNWHF) has a ROIC % of 12.22% 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 Renew Holdings and its competitors.
Is Renew Holdings' ROIC % too high?
Renew Holdings' current ROIC % is 12.22%. The Construction industry median ROIC % is 4.65. Renew Holdings' value of 12.22% is 162.8% above this industry median. Overall, Renew Holdings has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does Renew Holdings' ROIC % compare to PWR and FIX?
Renew Holdings' ROIC % of 12.22% can be compared against companies in the Construction industry. The industry median ROIC % is 4.65. Renew Holdings' value of 12.22% is 162.8% 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 Construction company?
The median ROIC % among Construction companies is 4.65, based on 1,755 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. Renew Holdings's current ROIC % of 12.22% is 162.8% 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 Renew Holdings and its competitors. For the Construction industry, the median ROIC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Renew Holdings's current ROIC % is 12.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Renew Holdings stock overvalued right now?
Renew Holdings (RNWHF) has a current ROIC % of 12.22%. The stock's GF Value™ is $12.63, compared to a current price of $11.05 — trading 12.5% below its estimated fair value. The current ROIC % is 12.22% and 162.8% above the Construction industry median of 4.65. Renew Holdings' overall GF Score™ is 89/100 with 1 warning sign 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 Renew Holdings (RNWHF), the current ROIC % is 12.22% 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 Renew Holdings (RNWHF) Overvalued in 2026?
Based on GuruFocus' analysis, Renew Holdings stock appears to be undervalued.
The current stock price of $11.05 is trading 12.5% below its estimated GF Value™ of $12.63.
Key valuation signals for RNWHF:
ROIC %: 12.22%
GF Value™: $12.63 vs. price of $11.05 (12.5% below fair value)
Industry Position: 162.8% above the Construction median
No single metric tells the full story. See the RNWHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Renew Holdings PLC provides multidisciplinary engineering services to the energy, environmental, infrastructure, and specialist building sectors in the United Kingdom. Its activities are operated through a business segment that includes Engineering Services, providing infrastructure maintenance across a range of civil, mechanical, and electrical engineering applications. The service process is predominantly based on long-term framework agreements, serving blue-chip customers in regulated markets. Services are delivered directly by the Group's skilled engineering workforce, supplemented by specialist subcontractors where appropriate. The company operates in the UK and Europe, with the majority of operating revenue generated from the UK.
89GF Score
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