GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Seaboard Corp (AMEX:SEB) » Definitions » ROIC %

Seaboard (Seaboard) ROIC % : -1.26% (As of Mar. 2024)


View and export this data going back to 1980. Start your Free Trial

What is Seaboard ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Seaboard's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was -1.26%.

As of today (2024-05-25), Seaboard's WACC % is 5.82%. Seaboard's ROIC % is -1.34% (calculated using TTM income statement data). Seaboard earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Seaboard ROIC % Historical Data

The historical data trend for Seaboard'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.

* Premium members only.

Seaboard ROIC % Chart

Seaboard Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.78 5.47 8.17 11.31 -3.02

Seaboard Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -5.06 -0.28 5.97 17.84 -1.26

Competitive Comparison of Seaboard's ROIC %

For the Conglomerates subindustry, Seaboard'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.


Seaboard's ROIC % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Seaboard's ROIC % distribution charts can be found below:

* The bar in red indicates where Seaboard's ROIC % falls into.



Seaboard ROIC % Calculation

Seaboard's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-87 * ( 1 - -112.15% )/( (6127 + 6081)/ 2 )
=-184.5705/6104
=-3.02 %

where

Seaboard's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

ROIC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=-80 * ( 1 - 4.35% )/( (6081 + 6072)/ 2 )
=-76.52/6076.5
=-1.26 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

* 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.


Seaboard  (AMEX:SEB) 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, Seaboard's WACC % is 5.82%. Seaboard's ROIC % is -1.34% (calculated using TTM income statement data).


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.


Seaboard ROIC % Related Terms

Thank you for viewing the detailed overview of Seaboard's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Seaboard (Seaboard) Business Description

Traded in Other Exchanges
Address
9000 West 67th Street, Merriam, KS, USA, 66202
Seaboard Corp is a diversified group of companies that operate in agricultural and ocean transport businesses. The company is engaged in hog production and pork processing in the United States; commodity trading and grain processing in Africa and South America; cargo shipping services in the U.S., Caribbean and Central and South America; sugar and alcohol production in Argentina; and electric power generation in the Dominican Republic. It also has an equity method investment in Butterball, LLC, a producer and processor of turkey products. The group operates six business segments: pork, commodity trading and milling, marine, sugar and alcohol, power, and turkey. It operates in 45 countries, with a concentration in the U.S. and countries in Central and South America and Africa.
Executives
Cerezo Baena Laura P officer: Assistant Secretary 9000 W 67TH STREET, SHAWNEE MISSION KS 66202
Barbara M Smith officer: Interim Controller and PAO 9000 W 67TH STREET, MERRIAM KS 66202
Frances B Shifman director 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Vacas Jacques Emma Alejandra officer: Assistant Treasurer 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
James T Hubler officer: Assoc. Gen Counsel & Asst. Sec 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Benjamin R Hodes officer: Vice President, Finance 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Elizabeth A Loudon officer: Vice President, Tax 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
John B Warner officer: Vice President-Human Resources 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Adriana N Hoskins officer: Vice President and Treasurer 9000 WEST 67TH STREET, MERRIAM KS 66202
Peter B Brown officer: Pres. & CEO, Seaboard Foods 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Jacob A. Bresky officer: Vice Pres-Business Development 9000 WEST 67TH STREET, 3RD FLOOR, SHAWNEE MISSION KS 66202
Ellen S. Bresky director, 10 percent owner 9000 WEST 67TH STREET, 3RD FLOOR, SHAWNEE MISSION KS 66202
Douglas W Baena director
Darwin E Sand officer: Pres. & CEO, Seaboard Foods 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202
Winfield Ivan J. Jr officer: VP-Information Technology 9000 WEST 67TH STREET, SHAWNEE MISSION KS 66202

Seaboard (Seaboard) Headlines

From GuruFocus

REPORT OF EARNINGS AND DIVIDEND DECLARATION

By PRNewswire PRNewswire 11-01-2022

/C O R R E C T I O N -- Seaboard Corporation/

By PRNewswire PRNewswire 05-04-2023

Seaboard Stock Is Believed To Be Modestly Undervalued

By GF Value GF Value 04-29-2021

Seaboard Corporation Reports Earnings And Dividend Declaration

By PRNewswire PRNewswire 05-01-2019

Seaboard Corporation Announcement

By PRNewswire PRNewswire 07-13-2020