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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Solitron Devices's annualized return on invested capital (ROIC %) for the quarter that ended in May. 2026 was 24.73%.
As of today (2026-07-23), Solitron Devices's WACC % is 4.38%. Solitron Devices's ROIC % is 13.91% (calculated using TTM income statement data).
Solitron Devices 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.
Solitron Devices (OTCPK:SODI) 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, Solitron Devices's WACC % is 4.38%. Solitron Devices's ROIC % is 13.91% (calculated using TTM income statement data).
Solitron Devices 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.
Solitron Devices ROIC % Related Terms
Solitron Devices ROIC % Historical Data
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The historical data trend for Solitron Devices'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 Semiconductor Equipment & Materials subindustry, Solitron Devices'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.
Solitron Devices ROIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Solitron Devices's ROIC % distribution charts can be found below:
* The bar in red indicates where Solitron Devices's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (May. 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.
Solitron Devices (SODI) has a ROIC % of 24.73% as of May. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Solitron Devices and its competitors.
Is Solitron Devices' ROIC % too high?
Solitron Devices' current ROIC % is 24.73%. The Semiconductors industry median ROIC % is 3.77. Solitron Devices' value of 24.73% is 556% above this industry median. Overall, Solitron Devices has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Solitron Devices' ROIC % compare to RBCN and GSTX?
Solitron Devices' ROIC % of 24.73% can be compared against companies in the Semiconductors industry. The industry median ROIC % is 3.77. Solitron Devices' value of 24.73% is 556% 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 Semiconductors company?
The median ROIC % among Semiconductors companies is 3.77, based on 1,011 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. Solitron Devices's current ROIC % of 24.73% is 556% 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 Solitron Devices and its competitors. For the Semiconductors industry, the median ROIC % is 3.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solitron Devices's current ROIC % is 24.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solitron Devices stock overvalued right now?
Based on GuruFocus' analysis, Solitron Devices (SODI) is currently considered Fairly Valued. The stock's GF Value™ is $28.20, compared to a current price of $30.35 — trading 7.6% above its estimated fair value. The current ROIC % is 24.73% and 556% above the Semiconductors industry median of 3.77. Solitron Devices' overall GF Score™ is 66/100 with 5 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 Solitron Devices (SODI), the current ROIC % is 24.73% as of May. 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 Solitron Devices (SODI) Overvalued in 2026?
Based on GuruFocus' analysis, Solitron Devices stock appears to be overvalued.
The current stock price of $30.35 is trading 7.6% above its estimated GF Value™ of $28.20.
GuruFocus considers Solitron Devices to be Fairly Valued.
Key valuation signals for SODI:
ROIC %: 24.73%
GF Value™: $28.20 vs. price of $30.35 (7.6% above fair value)
Industry Position: 556% above the Semiconductors median
No single metric tells the full story. See the SODI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solitron Devices Inc designs, develops, manufactures, and markets solid-state semiconductor components and related devices mainly for the military and aerospace markets. The company also manufactures a large variety of bipolar and metal oxide semiconductor (MOS) power transistors, power and control hybrids, junction and power MOS field-effect transistors (Power MOSFETS), field-effect transistors, and other related products. The company derives the majority of its revenues from its business operations in the United States, while it also holds a presence in Canada, Latin America, Europe and Australia.
66GF Score
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