ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Netstars Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 1.43%.
As of today (2026-07-12), Netstars Co's WACC % is 8.65%. Netstars Co's ROIC % is 1.31% (calculated using TTM income statement data).
Netstars Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Netstars Co (TSE:5590) 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, Netstars Co's WACC % is 8.65%. Netstars Co's ROIC % is 1.31% (calculated using TTM income statement data).
Netstars Co 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.
Netstars Co ROIC % Related Terms
Netstars Co ROIC % Historical Data
* Premium members only.
The historical data trend for Netstars Co'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 Software - Infrastructure subindustry, Netstars 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.
Netstars Co ROIC % vs Software Industry
For the Software industry and Technology sector, Netstars Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Netstars Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (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.
Netstars Co (TSE:5590) has a ROIC % of 1.43% 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 Netstars Co and its competitors.
Is Netstars Co's ROIC % too high?
Netstars Co's current ROIC % is 1.43%. The Software industry median ROIC % is 3.09. Netstars Co's value of 1.43% is 53.7% below this industry median. Overall, Netstars Co has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Netstars Co's ROIC % compare to MSFT and ORCL?
Netstars Co's ROIC % of 1.43% can be compared against companies in the Software industry. The industry median ROIC % is 3.09. Netstars Co's value of 1.43% is 53.7% 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 Software company?
The median ROIC % among Software companies is 3.09, based on 2,829 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. Netstars Co's current ROIC % of 1.43% is 53.7% 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 Netstars Co and its competitors. For the Software industry, the median ROIC % is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Netstars Co's current ROIC % is 1.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Netstars Co stock overvalued right now?
Netstars Co (TSE:5590) has a current ROIC % of 1.43%. The current ROIC % is 1.43% and 53.7% below the Software industry median of 3.09. Netstars Co's overall GF Score™ is 11/100 with 3 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 Netstars Co (TSE:5590), the current ROIC % is 1.43% 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.
Netstars Co Ltd is an internet service company. its services are focused on three key areas: StarPay, its multi-cashless payment solution; StarPay-DX, which tackles store operation issues through labor-saving DX; and StarPay Global, which advances the cashless revolution overseas. The company concentrates its efforts on the fintech business, with payment at its foundation.
11GF Score
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