ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sonae SGPS's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.95%.
As of today (2026-06-29), Sonae SGPS's WACC % is 6.44%. Sonae SGPS's ROIC % is 3.12% (calculated using TTM income statement data).
Sonae SGPS earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sonae SGPS (OTCPK:SOSSF) 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, Sonae SGPS's WACC % is 6.44%. Sonae SGPS's ROIC % is 3.12% (calculated using TTM income statement data).
Sonae SGPS 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.
Sonae SGPS ROIC % Related Terms
Sonae SGPS ROIC % Historical Data
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The historical data trend for Sonae SGPS'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 Grocery Stores subindustry, Sonae SGPS'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.
Sonae SGPS ROIC % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sonae SGPS's ROIC % distribution charts can be found below:
* The bar in red indicates where Sonae SGPS'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.
Sonae SGPS (SOSSF) has a ROIC % of 2.95% 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 Sonae SGPS and its competitors.
Is Sonae SGPS's ROIC % too high?
Sonae SGPS's current ROIC % is 2.95%. The Retail - Defensive industry median ROIC % is 5.71. Sonae SGPS's value of 2.95% is 48.3% below this industry median. Overall, Sonae SGPS has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Sonae SGPS's ROIC % compare to KR and SFM?
Sonae SGPS's ROIC % of 2.95% can be compared against companies in the Retail - Defensive industry. The industry median ROIC % is 5.71. Sonae SGPS's value of 2.95% is 48.3% 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 - Defensive company?
The median ROIC % among Retail - Defensive companies is 5.71, based on 307 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. Sonae SGPS's current ROIC % of 2.95% is 48.3% 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 Sonae SGPS and its competitors. For the Retail - Defensive industry, the median ROIC % is 5.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonae SGPS's current ROIC % is 2.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonae SGPS stock overvalued right now?
Sonae SGPS (SOSSF) has a current ROIC % of 2.95%. The stock's GF Value™ is $0.45, compared to a current price of $0.70 — trading 55.6% above its estimated fair value. The current ROIC % is 2.95% and 48.3% below the Retail - Defensive industry median of 5.71. Sonae SGPS's overall GF Score™ is 86/100 with 8 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 Sonae SGPS (SOSSF), the current ROIC % is 2.95% 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.
Is Sonae SGPS (SOSSF) Overvalued in 2026?
Based on GuruFocus' analysis, Sonae SGPS stock appears to be overvalued.
The current stock price of $0.70 is trading 55.6% above its estimated GF Value™ of $0.45.
Key valuation signals for SOSSF:
ROIC %: 2.95%
GF Value™: $0.45 vs. price of $0.70 (55.6% above fair value)
Industry Position: 48.3% below the Retail - Defensive median
No single metric tells the full story. See the SOSSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonae SGPS SA is a retail company that manages a variety of business portfolios, including food, sports goods, clothing & apparel, financial services, electronics, technology, and telecommunication. The company's business is divided into segments based on the business offerings: MC, Worten, Musti, Bright Pixel, Sierra, and NOS. The MC business segment, which generates maximum of the company's revenue, deals in the Portuguese food retail market and also operates in complementary businesses to retail activities, as well as in the health and beauty retail sector in Portugal and Spain. The company operates earns majority of its revenue in Portugal, while it also has its presence in Nordic Countries, Spain, Netherlands, Romania, France, Italy, England, and Rest of the World.
86GF Score
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