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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 %. LSI Software's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 33.60%.
As of today (2026-07-14), LSI Software's WACC % is 10.05%. LSI Software's ROIC % is 27.50% (calculated using TTM income statement data).
LSI Software 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.
LSI Software (WAR:LSI) 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, LSI Software's WACC % is 10.05%. LSI Software's ROIC % is 27.50% (calculated using TTM income statement data).
LSI Software 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.
LSI Software ROIC % Related Terms
LSI Software ROIC % Historical Data
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The historical data trend for LSI Software'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 - Application subindustry, LSI Software'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.
LSI Software ROIC % vs Software Industry
For the Software industry and Technology sector, LSI Software's ROIC % distribution charts can be found below:
* The bar in red indicates where LSI Software'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.
LSI Software (WAR:LSI) has a ROIC % of 33.60% 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 LSI Software and its competitors.
Is LSI Software's ROIC % too high?
LSI Software's current ROIC % is 33.60%. The Software industry median ROIC % is 3.09. LSI Software's value of 33.60% is 987.4% above this industry median. Overall, LSI Software has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does LSI Software's ROIC % compare to UBER and SHOP?
LSI Software's ROIC % of 33.60% can be compared against companies in the Software industry. The industry median ROIC % is 3.09. LSI Software's value of 33.60% is 987.4% 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 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. LSI Software's current ROIC % of 33.60% is 987.4% 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 LSI Software 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. LSI Software's current ROIC % is 33.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LSI Software stock overvalued right now?
Based on GuruFocus' analysis, LSI Software (WAR:LSI) is currently considered Significantly Overvalued. The stock's GF Value™ is zł26.07, compared to a current price of zł62.80 — trading 140.9% above its estimated fair value. The current ROIC % is 33.60% and 987.4% above the Software industry median of 3.09. LSI Software's overall GF Score™ is 78/100 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 LSI Software (WAR:LSI), the current ROIC % is 33.60% 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 LSI Software (WAR:LSI) Overvalued in 2026?
Based on GuruFocus' analysis, LSI Software stock appears to be overvalued.
The current stock price of zł62.80 is trading 140.9% above its estimated GF Value™ of zł26.07.
GuruFocus considers LSI Software to be Significantly Overvalued.
Key valuation signals for WAR:LSI:
ROIC %: 33.60%
GF Value™: zł26.07 vs. price of zł62.80 (140.9% above fair value)
Industry Position: 987.4% above the Software median
No single metric tells the full story. See the WAR:LSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LSI Software SA is engaged in software development for retail and hospitality sectors as well as for cinema operators. It also involved in professional services, implementation services, maintenance, and the supplying of hardware solutions. The company products are bifurcated namely Bastion Enterprise Resource Planning (ERP), Positive Retail, Positive Hospitality and Expert computer hardware. The company derives majority of its revenues from the sale of the Software business and has operations spread across Poland. Its geographic segments include Poland and other countries.
78GF Score
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