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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 %. Consolidated Water Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 11.71%.
As of today (2026-09-02), Consolidated Water Co's WACC % is 8.84%. Consolidated Water Co's ROIC % is 11.64% (calculated using TTM income statement data).
Consolidated Water Co 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.
Consolidated Water Co (STU:CW2) 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, Consolidated Water Co's WACC % is 8.84%. Consolidated Water Co's ROIC % is 11.64% (calculated using TTM income statement data).
Consolidated Water Co 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.
* 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 Utilities - Regulated Water subindustry, Consolidated Water Co'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.
Consolidated Water Co ROIC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Consolidated Water Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Consolidated Water Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 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.
Consolidated Water Co (STU:CW2) has a ROIC % of 11.71% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Consolidated Water Co and its competitors.
Is Consolidated Water Co's ROIC % too high?
Consolidated Water Co's current ROIC % is 11.71%. The Utilities - Regulated industry median ROIC % is 4.23. Consolidated Water Co's value of 11.71% is 176.8% above this industry median. Overall, Consolidated Water Co has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Consolidated Water Co's ROIC % compare to YORW and ARTNA?
Consolidated Water Co's ROIC % of 11.71% can be compared against companies in the Utilities - Regulated industry. The industry median ROIC % is 4.23. Consolidated Water Co's value of 11.71% is 176.8% 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 an Utilities - Regulated company?
The median ROIC % among Utilities - Regulated companies is 4.23, based on 501 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. Consolidated Water Co's current ROIC % of 11.71% is 176.8% 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 Consolidated Water Co and its competitors. For the Utilities - Regulated industry, the median ROIC % is 4.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Consolidated Water Co's current ROIC % is 11.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Consolidated Water Co stock overvalued right now?
Consolidated Water Co (STU:CW2) has a current ROIC % of 11.71%. The stock's GF Value™ is €23.06, compared to a current price of €24.58 — trading 6.6% above its estimated fair value. The current ROIC % is 11.71% and 176.8% above the Utilities - Regulated industry median of 4.23. Consolidated Water Co's overall GF Score™ is 79/100 with 2 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 Consolidated Water Co (STU:CW2), the current ROIC % is 11.71% as of Jun. 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 Consolidated Water Co (STU:CW2) Overvalued in 2026?
Based on GuruFocus' analysis, Consolidated Water Co stock appears to be overvalued.
The current stock price of €24.58 is trading 6.6% above its estimated GF Value™ of €23.06.
Key valuation signals for STU:CW2:
ROIC %: 11.71%
GF Value™: €23.06 vs. price of €24.58 (6.6% above fair value)
Industry Position: 176.8% above the Utilities - Regulated median
No single metric tells the full story. See the STU:CW2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Consolidated Water Co Ltd is a water utility company. It develops and operates seawater desalination plants and water distribution systems. The company's business segments are; The retail segment operates the water utility for the Seven Mile Beach and West Bay areas of Grand Cayman Island, The bulk segment supplies potable water to government utilities in Grand Cayman and The Bahamas under long-term contracts, The services segment designs, constructs and sells water infrastructure and provides management and operating services to third parties. The manufacturing segment manufactures and services a wide range of custom and specialized water-related products applicable to commercial, municipal, and industrial water production, supply, and treatment, and the corporate segment.
79GF Score
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