ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Signet Jewelers's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2026 was 2.90%.
As of today (2026-06-24), Signet Jewelers's WACC % is 9.31%. Signet Jewelers's ROIC % is 8.74% (calculated using TTM income statement data).
Signet Jewelers earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Signet Jewelers (NYSE:SIG) 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, Signet Jewelers's WACC % is 9.31%. Signet Jewelers's ROIC % is 8.74% (calculated using TTM income statement data).
Signet Jewelers earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Signet Jewelers ROIC % Related Terms
Signet Jewelers ROIC % Historical Data
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The historical data trend for Signet Jewelers'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 Luxury Goods subindustry, Signet Jewelers'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.
Signet Jewelers ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Signet Jewelers's ROIC % distribution charts can be found below:
* The bar in red indicates where Signet Jewelers's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Apr. 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.
Signet Jewelers (SIG) has a ROIC % of 2.90% as of Apr. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Signet Jewelers and its competitors.
Is Signet Jewelers' ROIC % too high?
Signet Jewelers' current ROIC % is 2.90%. The Retail - Cyclical industry median ROIC % is 4.36. Signet Jewelers' value of 2.90% is 33.5% below this industry median. Overall, Signet Jewelers has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Signet Jewelers' ROIC % compare to CPRI and REAL?
Signet Jewelers' ROIC % of 2.90% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.36. Signet Jewelers' value of 2.90% is 33.5% below 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 Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.36, based on 1,114 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. Signet Jewelers's current ROIC % of 2.90% is 33.5% below 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 Signet Jewelers and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Signet Jewelers's current ROIC % is 2.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Signet Jewelers stock overvalued right now?
Based on GuruFocus' analysis, Signet Jewelers (SIG) is currently considered Modestly Undervalued. The stock's GF Value™ is $96.24, compared to a current price of $85.09 — trading 11.6% below its estimated fair value. The current ROIC % is 2.90% and 33.5% below the Retail - Cyclical industry median of 4.36. Signet Jewelers' overall GF Score™ is 80/100 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 Signet Jewelers (SIG), the current ROIC % is 2.90% as of Apr. 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 Signet Jewelers (SIG) Overvalued in 2026?
Based on GuruFocus' analysis, Signet Jewelers stock appears to be undervalued.
The current stock price of $85.09 is trading 11.6% below its estimated GF Value™ of $96.24.
GuruFocus considers Signet Jewelers to be Modestly Undervalued.
Key valuation signals for SIG:
ROIC %: 2.90%
GF Value™: $96.24 vs. price of $85.09 (11.6% below fair value)
Industry Position: 33.5% below the Retail - Cyclical median
No single metric tells the full story. See the SIG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Signet Jewelers Ltd is a retailer of diamond jewelry. Its merchandise mix includes bridal, fashion, watches, and others. The bridal category includes engagement, wedding, and anniversary purchases. Its segments are the North America segment, the International segment, and the Other segment. The North America segment contributes to the majority of the revenue. The North America segment generates revenue from Mall and Outlet. Geographically, it operates in the USA, Canada, the UK, and Ireland, with the maximum revenue from the USA.
80GF Score
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