ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. TKH Group NV's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 7.79%.
As of today (2026-07-03), TKH Group NV's WACC % is 8.89%. TKH Group NV's ROIC % is 5.41% (calculated using TTM income statement data).
TKH Group NV earns returns that do not match up to its cost of capital. It will destroy value as it grows.
TKH Group NV (STU:TWSA) 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, TKH Group NV's WACC % is 8.89%. TKH Group NV's ROIC % is 5.41% (calculated using TTM income statement data).
TKH Group NV 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.
TKH Group NV ROIC % Related Terms
TKH Group NV ROIC % Historical Data
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The historical data trend for TKH Group NV'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 Communication Equipment subindustry, TKH Group NV'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.
TKH Group NV ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, TKH Group NV's ROIC % distribution charts can be found below:
* The bar in red indicates where TKH Group NV's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) 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.
TKH Group NV (STU:TWSA) has a ROIC % of 7.79% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on TKH Group NV and its competitors.
Is TKH Group NV's ROIC % too high?
TKH Group NV's current ROIC % is 7.79%. The Hardware industry median ROIC % is 4.11. TKH Group NV's value of 7.79% is 89.5% above this industry median. Overall, TKH Group NV has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does TKH Group NV's ROIC % compare to CSCO and CIEN?
TKH Group NV's ROIC % of 7.79% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.11. TKH Group NV's value of 7.79% is 89.5% 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 Hardware company?
The median ROIC % among Hardware companies is 4.11, based on 2,447 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. TKH Group NV's current ROIC % of 7.79% is 89.5% 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 TKH Group NV and its competitors. For the Hardware industry, the median ROIC % is 4.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TKH Group NV's current ROIC % is 7.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TKH Group NV stock overvalued right now?
Based on GuruFocus' analysis, TKH Group NV (STU:TWSA) is currently considered Fairly Valued. The stock's GF Value™ is €39.47, compared to a current price of €42.76 — trading 8.3% above its estimated fair value. The current ROIC % is 7.79% and 89.5% above the Hardware industry median of 4.11. TKH Group NV's overall GF Score™ is 79/100 with 11 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 TKH Group NV (STU:TWSA), the current ROIC % is 7.79% as of Dec. 2025. 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 TKH Group NV (STU:TWSA) Overvalued in 2026?
Based on GuruFocus' analysis, TKH Group NV stock appears to be overvalued.
The current stock price of €42.76 is trading 8.3% above its estimated GF Value™ of €39.47.
GuruFocus considers TKH Group NV to be Fairly Valued.
Key valuation signals for STU:TWSA:
ROIC %: 7.79%
GF Value™: €39.47 vs. price of €42.76 (8.3% above fair value)
Industry Position: 89.5% above the Hardware median
No single metric tells the full story. See the STU:TWSA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TKH Group NV is a provider of vertical-specific communications and connectivity solutions. Its operations are organized into three segments, which include Smart Vision systems, Smart Connectivity systems, and Smart Manufacturing systems. The firm derives revenue from the Netherlands, Europe (other), Asia, North America, and other. The Smart Vision systems segment operates through a coherent, vertically integrated business model combining hardware, software, and service focused on delivering end-to-end 2D/3D vision and security solutions. Smart Manufacturing systems segment focuses on delivering automated, software-driven production systems for specialized industrial markets. Smart Connectivity systems segment operates as a technology-driven provider of specialized connectivity solutions.
79GF Score
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