ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Nine Energy Service's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.00%.
As of today (2026-06-29), Nine Energy Service's WACC % is 13.08%. Nine Energy Service's ROIC % is 0.15% (calculated using TTM income statement data).
Nine Energy Service earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Nine Energy Service (STU:NEJ) 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, Nine Energy Service's WACC % is 13.08%. Nine Energy Service's ROIC % is 0.15% (calculated using TTM income statement data).
Nine Energy Service 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.
Nine Energy Service ROIC % Related Terms
Nine Energy Service ROIC % Historical Data
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The historical data trend for Nine Energy Service'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 Oil & Gas Equipment & Services subindustry, Nine Energy Service'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.
Nine Energy Service ROIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Nine Energy Service's ROIC % distribution charts can be found below:
* The bar in red indicates where Nine Energy Service'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.
Nine Energy Service (STU:NEJ) has a ROIC % of 0.00% 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 Nine Energy Service and its competitors.
Is Nine Energy Service's ROIC % too high?
Nine Energy Service's current ROIC % is 0.00%. Overall, Nine Energy Service has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Nine Energy Service's ROIC % compare to OMSE and DWSN?
Nine Energy Service's ROIC % of 0.00% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.66. 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 Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.66, based on 1,002 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. 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 Nine Energy Service and its competitors. For the Oil & Gas industry, the median ROIC % is 3.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nine Energy Service's current ROIC % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nine Energy Service stock overvalued right now?
Nine Energy Service (STU:NEJ) has a current ROIC % of 0.00%. The stock's GF Value™ is €35.58, compared to a current price of €0.35 — trading 99% below its estimated fair value. The current ROIC % is 0.00%. Nine Energy Service's overall GF Score™ is 23/100 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 Nine Energy Service (STU:NEJ), the current ROIC % is 0.00% 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 Nine Energy Service (STU:NEJ) Overvalued in 2026?
Based on GuruFocus' analysis, Nine Energy Service stock appears to be undervalued.
The current stock price of €0.35 is trading 99% below its estimated GF Value™ of €35.58.
Key valuation signals for STU:NEJ:
ROIC %: 0.00%
GF Value™: €35.58 vs. price of €0.35 (99% below fair value)
No single metric tells the full story. See the STU:NEJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nine Energy Service Inc is a North American onshore completion and production services provider. It targets unconventional oil and gas resource development. The Company operates as one reportable segment, known as Completions Solutions. The Completions Solutions segment provides services and products integral to the completion of unconventional wells through a full range of tools and methodologies. These services and products are similar in purpose and end use by focusing on preparing and enabling a well to produce oil and gas and must be completed in order for a well to begin producing hydrocarbons. It operates in the U.S, Canada, and other countries where the majority of the revenue is generated from the United States.
23GF Score
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