ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Smartstop Self Storage REIT's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.56%.
As of today (2026-06-27), Smartstop Self Storage REIT's WACC % is 8.01%. Smartstop Self Storage REIT's ROIC % is 2.33% (calculated using TTM income statement data).
Smartstop Self Storage REIT earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Smartstop Self Storage REIT's WACC % is 8.01%. Smartstop Self Storage REIT's ROIC % is 2.33% (calculated using TTM income statement data).
Smartstop Self Storage REIT 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.
Smartstop Self Storage REIT ROIC % Related Terms
Smartstop Self Storage REIT ROIC % Historical 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.
For the REIT - Industrial subindustry, Smartstop Self Storage REIT'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.
Smartstop Self Storage REIT ROIC % vs REITs Industry
For the REITs industry and Real Estate sector, Smartstop Self Storage REIT's ROIC % distribution charts can be found below:
* The bar in red indicates where Smartstop Self Storage REIT'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.
Smartstop Self Storage REIT (SMA) has a ROIC % of 2.56% 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 Smartstop Self Storage REIT and its competitors.
Is Smartstop Self Storage REIT's ROIC % too high?
Smartstop Self Storage REIT's current ROIC % is 2.56%. The REITs industry median ROIC % is 3.74. Smartstop Self Storage REIT's value of 2.56% is 31.6% below this industry median. Overall, Smartstop Self Storage REIT has a GF Score™ of 40/100, reflecting its overall financial health beyond just this single metric.
How does Smartstop Self Storage REIT's ROIC % compare to IIPR and ILPT?
Smartstop Self Storage REIT's ROIC % of 2.56% can be compared against companies in the REITs industry. The industry median ROIC % is 3.74. Smartstop Self Storage REIT's value of 2.56% is 31.6% 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 REITs company?
The median ROIC % among REITs companies is 3.74, based on 749 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. Smartstop Self Storage REIT's current ROIC % of 2.56% is 31.6% 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 Smartstop Self Storage REIT and its competitors. For the REITs industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smartstop Self Storage REIT's current ROIC % is 2.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smartstop Self Storage REIT stock overvalued right now?
Smartstop Self Storage REIT (SMA) has a current ROIC % of 2.56%. The current ROIC % is 2.56% and 31.6% below the REITs industry median of 3.74. Smartstop Self Storage REIT's overall GF Score™ is 40/100 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 Smartstop Self Storage REIT (SMA), the current ROIC % is 2.56% 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.
Smartstop Self Storage REIT Inc operates as a real estate investment trust. The trust owns, acquires, and operates self-storage properties. It operates in two segments, namely, self-storage operations, which generate key revenue, and the managed REIT platform business. The investment objective is to focus on investing in self-storage facilities and related self-storage real estate investments that are expected to support sustainable stockholder distributions over the long term.
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