ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sandoz Group AG's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 7.04%.
As of today (2026-06-27), Sandoz Group AG's WACC % is 5.98%. Sandoz Group AG's ROIC % is 6.00% (calculated using TTM income statement data).
Sandoz Group AG 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.
Sandoz Group AG (OTCPK:SDZXF) 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, Sandoz Group AG's WACC % is 5.98%. Sandoz Group AG's ROIC % is 6.00% (calculated using TTM income statement data).
Sandoz Group AG 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.
Sandoz Group AG ROIC % Related Terms
Sandoz Group AG ROIC % Historical Data
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The historical data trend for Sandoz Group AG'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 Drug Manufacturers - Specialty & Generic subindustry, Sandoz Group AG'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.
Sandoz Group AG ROIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sandoz Group AG's ROIC % distribution charts can be found below:
* The bar in red indicates where Sandoz Group AG's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Sandoz Group AG (SDZXF) has a ROIC % of 7.04% 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 Sandoz Group AG and its competitors.
Is Sandoz Group AG's ROIC % too high?
Sandoz Group AG's current ROIC % is 7.04%. The Drug Manufacturers industry median ROIC % is 4.44. Sandoz Group AG's value of 7.04% is 58.6% above this industry median. Overall, Sandoz Group AG has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Sandoz Group AG's ROIC % compare to ZTS and UTHR?
Sandoz Group AG's ROIC % of 7.04% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.44. Sandoz Group AG's value of 7.04% is 58.6% 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 Drug Manufacturers company?
The median ROIC % among Drug Manufacturers companies is 4.44, based on 985 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. Sandoz Group AG's current ROIC % of 7.04% is 58.6% 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 Sandoz Group AG and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sandoz Group AG's current ROIC % is 7.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sandoz Group AG stock overvalued right now?
Sandoz Group AG (SDZXF) has a current ROIC % of 7.04%. The current ROIC % is 7.04% and 58.6% above the Drug Manufacturers industry median of 4.44. Sandoz Group AG's overall GF Score™ is 18/100 with 6 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 Sandoz Group AG (SDZXF), the current ROIC % is 7.04% 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.
Sandoz is one of the largest generic pharmaceutical manufacturers in the world, generating over $11 billion annually from off-patent drugs. Once part of Novartis, Sandoz spun off and went public in October 2023. Generics, including small molecules and complex injectables, make up roughly 75% of Sandoz's total sales, and the firm has a significant presence in Europe, the United States, and other key international markets. Sandoz generates its remaining sales from biosimilars and is among the leaders in the space. Sandoz launched Europe's first biosimilar, Omnitrope, in 2006, as well as the first US biosimilar, Zarxio, in 2015. It has over 10 launched biosimilars in a number of markets and over 20 assets in its pipeline.
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