ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sundrug Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 11.71%.
As of today (2026-06-27), Sundrug Co's WACC % is 2.63%. Sundrug Co's ROIC % is 10.64% (calculated using TTM income statement data).
Sundrug Co 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.
Sundrug Co (OTCPK:SDGCF) 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, Sundrug Co's WACC % is 2.63%. Sundrug Co's ROIC % is 10.64% (calculated using TTM income statement data).
Sundrug Co 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.
Sundrug Co ROIC % Related Terms
Sundrug Co ROIC % Historical Data
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The historical data trend for Sundrug Co'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 Pharmaceutical Retailers subindustry, Sundrug Co'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.
Sundrug Co ROIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Sundrug Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Sundrug Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (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.
Sundrug Co (SDGCF) has a ROIC % of 11.71% 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 Sundrug Co and its competitors.
Is Sundrug Co's ROIC % too high?
Sundrug Co's current ROIC % is 11.71%. The Healthcare Providers & Services industry median ROIC % is 3.06. Sundrug Co's value of 11.71% is 282.7% above this industry median. Overall, Sundrug Co has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Sundrug Co's ROIC % compare to competitors?
Sundrug Co's ROIC % of 11.71% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.06. Sundrug Co's value of 11.71% is 282.7% 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 Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.06, based on 671 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. Sundrug Co's current ROIC % of 11.71% is 282.7% 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 Sundrug Co and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sundrug Co's current ROIC % is 11.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sundrug Co stock overvalued right now?
Sundrug Co (SDGCF) has a current ROIC % of 11.71%. The stock's GF Value™ is $34.93, compared to a current price of $28.18 — trading 19.3% below its estimated fair value. The current ROIC % is 11.71% and 282.7% above the Healthcare Providers & Services industry median of 3.06. Sundrug Co's overall GF Score™ is 82/100 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 Sundrug Co (SDGCF), the current ROIC % is 11.71% 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.
Is Sundrug Co (SDGCF) Overvalued in 2026?
Based on GuruFocus' analysis, Sundrug Co stock appears to be undervalued.
The current stock price of $28.18 is trading 19.3% below its estimated GF Value™ of $34.93.
Key valuation signals for SDGCF:
ROIC %: 11.71%
GF Value™: $34.93 vs. price of $28.18 (19.3% below fair value)
Industry Position: 282.7% above the Healthcare Providers & Services median
No single metric tells the full story. See the SDGCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sundrug Co Ltd is a Japanese-based company engaged in the operation of drug stores and discount stores. The Group operates through two segments: the Drug Store Business, which mainly sells pharmaceuticals, cosmetics, and daily necessities, and the Discount Store Business, which mainly sells food products, household goods, and other related items. It generates the majority of its revenue from the Drugstore business segment.
82GF Score
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