ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Taylor Wimpey's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 7.19%.
As of today (2026-06-27), Taylor Wimpey's WACC % is 11.92%. Taylor Wimpey's ROIC % is 5.87% (calculated using TTM income statement data).
Taylor Wimpey earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Taylor Wimpey (OTCPK:TWODY) 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, Taylor Wimpey's WACC % is 11.92%. Taylor Wimpey's ROIC % is 5.87% (calculated using TTM income statement data).
Taylor Wimpey 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.
Taylor Wimpey ROIC % Related Terms
Taylor Wimpey ROIC % Historical Data
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The historical data trend for Taylor Wimpey'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 Residential Construction subindustry, Taylor Wimpey'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.
Taylor Wimpey ROIC % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Taylor Wimpey's ROIC % distribution charts can be found below:
* The bar in red indicates where Taylor Wimpey'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.
Taylor Wimpey (TWODY) has a ROIC % of 7.19% 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 Taylor Wimpey and its competitors.
Is Taylor Wimpey's ROIC % too high?
Taylor Wimpey's current ROIC % is 7.19%. The Homebuilding & Construction industry median ROIC % is 4.78. Taylor Wimpey's value of 7.19% is 50.4% above this industry median. Overall, Taylor Wimpey has a GF Score™ of 64/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Taylor Wimpey's ROIC % compare to DHI and PHM?
Taylor Wimpey's ROIC % of 7.19% can be compared against companies in the Homebuilding & Construction industry. The industry median ROIC % is 4.78. Taylor Wimpey's value of 7.19% is 50.4% 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 Homebuilding & Construction company?
The median ROIC % among Homebuilding & Construction companies is 4.78, based on 95 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. Taylor Wimpey's current ROIC % of 7.19% is 50.4% 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 Taylor Wimpey and its competitors. For the Homebuilding & Construction industry, the median ROIC % is 4.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taylor Wimpey's current ROIC % is 7.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taylor Wimpey stock overvalued right now?
Based on GuruFocus' analysis, Taylor Wimpey (TWODY) is currently considered Significantly Undervalued. The stock's GF Value™ is $17.05, compared to a current price of $11.20 — trading 34.3% below its estimated fair value. The current ROIC % is 7.19% and 50.4% above the Homebuilding & Construction industry median of 4.78. Taylor Wimpey's overall GF Score™ is 64/100 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 Taylor Wimpey (TWODY), the current ROIC % is 7.19% 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 Taylor Wimpey (TWODY) Overvalued in 2026?
Based on GuruFocus' analysis, Taylor Wimpey stock appears to be undervalued.
The current stock price of $11.20 is trading 34.3% below its estimated GF Value™ of $17.05.
GuruFocus considers Taylor Wimpey to be Significantly Undervalued.
Key valuation signals for TWODY:
ROIC %: 7.19%
GF Value™: $17.05 vs. price of $11.20 (34.3% below fair value)
Industry Position: 50.4% above the Homebuilding & Construction median
No single metric tells the full story. See the TWODY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taylor Wimpey is the UK's fourth-largest residential property developer by revenue and dwelling completions and was established via the merger of George Wimpey and Taylor Woodrow in 2007. Taylor Wimpey typifies the business model employed by UK homebuilders, traditionally operating in the land development, construction, and sales and marketing segments of the residential property development value chain. The company also has a small homebuilding operation in Spain.
64GF Score
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