ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. City Service SE's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 8.32%.
As of today (2026-06-28), City Service SE's WACC % is 4.57%. City Service SE's ROIC % is 13.68% (calculated using TTM income statement data).
City Service SE generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
City Service SE (WAR:CTS) 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, City Service SE's WACC % is 4.57%. City Service SE's ROIC % is 13.68% (calculated using TTM income statement data).
City Service SE generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
City Service SE ROIC % Related Terms
City Service SE ROIC % Historical Data
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The historical data trend for City Service SE'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 Real Estate Services subindustry, City Service SE'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.
City Service SE ROIC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, City Service SE's ROIC % distribution charts can be found below:
* The bar in red indicates where City Service SE'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.
City Service SE (WAR:CTS) has a ROIC % of 8.32% 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 City Service SE and its competitors.
Is City Service SE's ROIC % too high?
City Service SE's current ROIC % is 8.32%. The Real Estate industry median ROIC % is 2.19. City Service SE's value of 8.32% is 279.9% above this industry median. Overall, City Service SE has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does City Service SE's ROIC % compare to CBRE and BEKE?
City Service SE's ROIC % of 8.32% can be compared against companies in the Real Estate industry. The industry median ROIC % is 2.19. City Service SE's value of 8.32% is 279.9% 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 Real Estate company?
The median ROIC % among Real Estate companies is 2.19, based on 1,760 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. City Service SE's current ROIC % of 8.32% is 279.9% 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 City Service SE and its competitors. For the Real Estate industry, the median ROIC % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. City Service SE's current ROIC % is 8.32%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is City Service SE stock overvalued right now?
Based on GuruFocus' analysis, City Service SE (WAR:CTS) is currently considered Fairly Valued. The stock's GF Value™ is zł75.42, compared to a current price of zł6.50 — trading 91.4% below its estimated fair value. The current ROIC % is 8.32% and 279.9% above the Real Estate industry median of 2.19. City Service SE's overall GF Score™ is 69/100 with 2 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 City Service SE (WAR:CTS), the current ROIC % is 8.32% 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 City Service SE (WAR:CTS) Overvalued in 2026?
Based on GuruFocus' analysis, City Service SE stock appears to be undervalued.
The current stock price of zł6.50 is trading 91.4% below its estimated GF Value™ of zł75.42.
GuruFocus considers City Service SE to be Fairly Valued.
Key valuation signals for WAR:CTS:
ROIC %: 8.32%
GF Value™: zł75.42 vs. price of zł6.50 (91.4% below fair value)
Industry Position: 279.9% above the Real Estate median
No single metric tells the full story. See the WAR:CTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
City Service SE is a holding company. The company controls a group engaged in the provision of facility management and integrated utility services in Western, Central, and Eastern Europe. The principal areas of company activities include Apartment building administration, Commercial facility management, Territory cleaning & Maintenance, and Other activities. The Group is organized into business units based on services provided and has one main reportable segment: Buildings' administration, which includes services of administration and maintenance of commercial and residential buildings. Geographically, the company provides its services in Lithuania, which is its key revenue-generating market, and Latvia.
69GF Score
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