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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. SBC Medical Group Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 23.39%.
As of today (2026-07-15), SBC Medical Group Holdings's WACC % is 9.67%. SBC Medical Group Holdings's ROIC % is 23.30% (calculated using TTM income statement data).
SBC Medical Group 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.
SBC Medical Group Holdings (NAS:SBC) 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, SBC Medical Group Holdings's WACC % is 9.67%. SBC Medical Group Holdings's ROIC % is 23.30% (calculated using TTM income statement data).
SBC Medical Group 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.
* 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 Consulting Services subindustry, SBC Medical Group 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.
SBC Medical Group Holdings ROIC % vs Business Services Industry
For the Business Services industry and Industrials sector, SBC Medical Group Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where SBC Medical Group Holdings'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.
SBC Medical Group Holdings (SBC) has a ROIC % of 23.39% 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 SBC Medical Group Holdings and its competitors.
Is SBC Medical Group Holdings' ROIC % too high?
SBC Medical Group Holdings' current ROIC % is 23.39%. The Business Services industry median ROIC % is 6.04. SBC Medical Group Holdings' value of 23.39% is 287.3% above this industry median. Overall, SBC Medical Group Holdings has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does SBC Medical Group Holdings' ROIC % compare to ROMA and EGG?
SBC Medical Group Holdings' ROIC % of 23.39% can be compared against companies in the Business Services industry. The industry median ROIC % is 6.04. SBC Medical Group Holdings' value of 23.39% is 287.3% 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 6.04, based on 1,074 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. SBC Medical Group Holdings's current ROIC % of 23.39% is 287.3% 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 SBC Medical Group Holdings and its competitors. For the Business Services industry, the median ROIC % is 6.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SBC Medical Group Holdings's current ROIC % is 23.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SBC Medical Group Holdings stock overvalued right now?
SBC Medical Group Holdings (SBC) has a current ROIC % of 23.39%. The current ROIC % is 23.39% and 287.3% above the Business Services industry median of 6.04. SBC Medical Group Holdings' overall GF Score™ is 21/100 with 3 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 SBC Medical Group Holdings (SBC), the current ROIC % is 23.39% 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.
SBC Medical Group Holdings Inc is a management company that provides management services to cosmetic treatment centers mainly in Japan. It is focused on providing comprehensive management services to franchisee clinics, including but not limited to advertising and marketing needs across various platforms (such as social media networks), staff management (such as recruitment and training), booking reservations for franchisee clinic customers, assistance with franchisee employee housing rentals and facility rentals, construction and design of franchisee clinics, medical equipment and medical consumables procurement (resale). The firm generates revenue mostly from these management services.
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