ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. SPX Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 9.19%.
As of today (2026-06-25), SPX Technologies's WACC % is 13.46%. SPX Technologies's ROIC % is 9.81% (calculated using TTM income statement data).
SPX Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.
SPX Technologies (NYSE:SPXC) 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, SPX Technologies's WACC % is 13.46%. SPX Technologies's ROIC % is 9.81% (calculated using TTM income statement data).
SPX Technologies 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.
SPX Technologies ROIC % Related Terms
SPX Technologies ROIC % Historical Data
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The historical data trend for SPX Technologies'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 Building Products & Equipment subindustry, SPX Technologies'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.
SPX Technologies ROIC % vs Construction Industry
For the Construction industry and Industrials sector, SPX Technologies's ROIC % distribution charts can be found below:
* The bar in red indicates where SPX Technologies'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.
SPX Technologies (SPXC) has a ROIC % of 9.19% 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 SPX Technologies and its competitors.
Is SPX Technologies' ROIC % too high?
SPX Technologies' current ROIC % is 9.19%. The Construction industry median ROIC % is 4.65. SPX Technologies' value of 9.19% is 97.6% above this industry median. Overall, SPX Technologies has a GF Score™ of 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SPX Technologies' ROIC % compare to WMS and AAON?
SPX Technologies' ROIC % of 9.19% can be compared against companies in the Construction industry. The industry median ROIC % is 4.65. SPX Technologies' value of 9.19% is 97.6% 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 Construction company?
The median ROIC % among Construction companies is 4.65, based on 1,755 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. SPX Technologies's current ROIC % of 9.19% is 97.6% 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 SPX Technologies and its competitors. For the Construction industry, the median ROIC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SPX Technologies's current ROIC % is 9.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SPX Technologies stock overvalued right now?
Based on GuruFocus' analysis, SPX Technologies (SPXC) is currently considered Significantly Overvalued. The stock's GF Value™ is $177.95, compared to a current price of $244.56 — trading 37.4% above its estimated fair value. The current ROIC % is 9.19% and 97.6% above the Construction industry median of 4.65. SPX Technologies' overall GF Score™ is 91/100 with 4 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 SPX Technologies (SPXC), the current ROIC % is 9.19% 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 SPX Technologies (SPXC) Overvalued in 2026?
Based on GuruFocus' analysis, SPX Technologies stock appears to be overvalued.
The current stock price of $244.56 is trading 37.4% above its estimated GF Value™ of $177.95.
GuruFocus considers SPX Technologies to be Significantly Overvalued.
Key valuation signals for SPXC:
ROIC %: 9.19%
GF Value™: $177.95 vs. price of $244.56 (37.4% above fair value)
Industry Position: 97.6% above the Construction median
No single metric tells the full story. See the SPXC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SPX Technologies Inc supplies engineered heating, ventilation, and air conditioning, or HVAC, products, as well as detection and measurement technologies and power equipment. The company operates through two reportable segments. The HVAC segment which generates the majority of the revenue for the company, designs, manufactures, installs, and services cooling products, as well as heating and ventilation products. The Detection and Measurement technologies segment designs, manufactures, and installs underground pipe and cable locators and inspection equipment, bus-fare collection systems, and others. Geographically, the company has its operations in the United States, Canada, China, the United Kingdom, and Others. It derives maximum revenue from United States.
91GF Score
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