ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. George Risk Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2026 was 27.57%.
As of today (2026-06-29), George Risk Industries's WACC % is 5.78%. George Risk Industries's ROIC % is 32.89% (calculated using TTM income statement data).
George Risk Industries 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.
George Risk Industries (OTCPK:RSKIA) 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, George Risk Industries's WACC % is 5.78%. George Risk Industries's ROIC % is 32.89% (calculated using TTM income statement data).
George Risk Industries 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.
* 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 Security & Protection Services subindustry, George Risk Industries'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.
George Risk Industries ROIC % vs Business Services Industry
For the Business Services industry and Industrials sector, George Risk Industries's ROIC % distribution charts can be found below:
* The bar in red indicates where George Risk Industries's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jan. 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.
George Risk Industries (RSKIA) has a ROIC % of 27.57% as of Jan. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on George Risk Industries and its competitors.
Is George Risk Industries' ROIC % too high?
George Risk Industries' current ROIC % is 27.57%. The Business Services industry median ROIC % is 5.93. George Risk Industries' value of 27.57% is 364.9% above this industry median. Overall, George Risk Industries has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does George Risk Industries' ROIC % compare to YOOV and BAER?
George Risk Industries' ROIC % of 27.57% can be compared against companies in the Business Services industry. The industry median ROIC % is 5.93. George Risk Industries' value of 27.57% is 364.9% 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 Business Services company?
The median ROIC % among Business Services companies is 5.93, based on 1,075 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. George Risk Industries's current ROIC % of 27.57% is 364.9% 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 George Risk Industries and its competitors. For the Business Services industry, the median ROIC % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. George Risk Industries's current ROIC % is 27.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is George Risk Industries stock overvalued right now?
Based on GuruFocus' analysis, George Risk Industries (RSKIA) is currently considered Modestly Overvalued. The stock's GF Value™ is $16.64, compared to a current price of $18.99 — trading 14.1% above its estimated fair value. The current ROIC % is 27.57% and 364.9% above the Business Services industry median of 5.93. George Risk Industries' overall GF Score™ is 85/100 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 George Risk Industries (RSKIA), the current ROIC % is 27.57% as of Jan. 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 George Risk Industries (RSKIA) Overvalued in 2026?
Based on GuruFocus' analysis, George Risk Industries stock appears to be overvalued.
The current stock price of $18.99 is trading 14.1% above its estimated GF Value™ of $16.64.
GuruFocus considers George Risk Industries to be Modestly Overvalued.
Key valuation signals for RSKIA:
ROIC %: 27.57%
GF Value™: $16.64 vs. price of $18.99 (14.1% above fair value)
Industry Position: 364.9% above the Business Services median
No single metric tells the full story. See the RSKIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
George Risk Industries Inc manufactures security products. The company is engaged in the designing, manufacturing, and sale of various products which include magnetic reed switches as well as keyboards and keyboard switches, proximity sensors, security alarm components, pool access alarms, electronic switching devices, low voltage raceway, wire, and cable installation tools, and various other sensors and devices. These security products are used in alarm system installations in the residential, commercial, industrial, and government sectors.
85GF Score
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