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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 %. Swiss Water Decaffeinated Coffee's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.92%.
As of today (2026-07-14), Swiss Water Decaffeinated Coffee's WACC % is 5.34%. Swiss Water Decaffeinated Coffee's ROIC % is 4.71% (calculated using TTM income statement data).
Swiss Water Decaffeinated Coffee earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Swiss Water Decaffeinated Coffee (TSX:SWP) 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, Swiss Water Decaffeinated Coffee's WACC % is 5.34%. Swiss Water Decaffeinated Coffee's ROIC % is 4.71% (calculated using TTM income statement data).
Swiss Water Decaffeinated Coffee 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.
Swiss Water Decaffeinated Coffee ROIC % Related Terms
Swiss Water Decaffeinated Coffee ROIC % Historical Data
* 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 Packaged Foods subindustry, Swiss Water Decaffeinated Coffee'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.
Swiss Water Decaffeinated Coffee ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Swiss Water Decaffeinated Coffee's ROIC % distribution charts can be found below:
* The bar in red indicates where Swiss Water Decaffeinated Coffee'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.
Swiss Water Decaffeinated Coffee (TSX:SWP) has a ROIC % of 5.92% 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 Swiss Water Decaffeinated Coffee and its competitors.
Is Swiss Water Decaffeinated Coffee's ROIC % too high?
Swiss Water Decaffeinated Coffee's current ROIC % is 5.92%. The Consumer Packaged Goods industry median ROIC % is 5.16. Swiss Water Decaffeinated Coffee's value of 5.92% is 14.7% above this industry median. Overall, Swiss Water Decaffeinated Coffee has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Swiss Water Decaffeinated Coffee's ROIC % compare to KHC and GIS?
Swiss Water Decaffeinated Coffee's ROIC % of 5.92% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.16. Swiss Water Decaffeinated Coffee's value of 5.92% is 14.7% 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 Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.16, based on 1,950 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. Swiss Water Decaffeinated Coffee's current ROIC % of 5.92% is 14.7% 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 Swiss Water Decaffeinated Coffee and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Swiss Water Decaffeinated Coffee's current ROIC % is 5.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Swiss Water Decaffeinated Coffee stock overvalued right now?
Based on GuruFocus' analysis, Swiss Water Decaffeinated Coffee (TSX:SWP) is currently considered Modestly Overvalued. The stock's GF Value™ is C$4.77, compared to a current price of C$5.67 — trading 18.9% above its estimated fair value. The current ROIC % is 5.92% and 14.7% above the Consumer Packaged Goods industry median of 5.16. Swiss Water Decaffeinated Coffee's overall GF Score™ is 77/100 with 7 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 Swiss Water Decaffeinated Coffee (TSX:SWP), the current ROIC % is 5.92% 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 Swiss Water Decaffeinated Coffee (TSX:SWP) Overvalued in 2026?
Based on GuruFocus' analysis, Swiss Water Decaffeinated Coffee stock appears to be overvalued.
The current stock price of C$5.67 is trading 18.9% above its estimated GF Value™ of C$4.77.
GuruFocus considers Swiss Water Decaffeinated Coffee to be Modestly Overvalued.
Key valuation signals for TSX:SWP:
ROIC %: 5.92%
GF Value™: C$4.77 vs. price of C$5.67 (18.9% above fair value)
Industry Position: 14.7% above the Consumer Packaged Goods median
No single metric tells the full story. See the TSX:SWP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Swiss Water Decaffeinated Coffee Business Description
Swiss Water Decaffeinated Coffee Inc is involved in the decaffeination of green coffee without the use of chemicals by employing the proprietary SWISS WATER Process. The company leverages science-based systems and quality controls to produce caffeine-free coffee. Additionally, it provides coffee decaffeination and distribution services. The company operates mainly one single business segment, decaffeination of green coffee beans Geographically, it operates in three segments: Canada, the United States, and other international markets, of which the maximum revenue is derived from the United States.
77GF Score
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