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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 %. GeneDx Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was -19.35%.
As of today (2026-08-27), GeneDx Holdings's WACC % is 14.69%. GeneDx Holdings's ROIC % is -19.11% (calculated using TTM income statement data).
GeneDx Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, GeneDx Holdings's WACC % is 14.69%. GeneDx Holdings's ROIC % is -19.11% (calculated using TTM income statement data).
GeneDx Holdings 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.
GeneDx Holdings ROIC % Related Terms
GeneDx Holdings ROIC % Historical Data
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The historical data trend for GeneDx Holdings'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 Diagnostics & Research subindustry, GeneDx Holdings'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.
GeneDx Holdings ROIC % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, GeneDx Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where GeneDx Holdings's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 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.
GeneDx Holdings (WGS) has a ROIC % of -19.35% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on GeneDx Holdings and its competitors.
Is GeneDx Holdings' ROIC % too high?
GeneDx Holdings' current ROIC % is -19.35%. Overall, GeneDx Holdings has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GeneDx Holdings' ROIC % compare to NEO and CDNA?
GeneDx Holdings' ROIC % of -19.35% can be compared against companies in the Medical Diagnostics & Research industry. 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 Medical Diagnostics & Research company?
A good ROIC % depends on the Medical Diagnostics & Research industry context. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 GeneDx Holdings and its competitors. GeneDx Holdings's current ROIC % is -19.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GeneDx Holdings stock overvalued right now?
Based on GuruFocus' analysis, GeneDx Holdings (WGS) is currently considered Modestly Overvalued. The stock's GF Value™ is $73.77, compared to a current price of $90.32 — trading 22.4% above its estimated fair value. The current ROIC % is -19.35%. GeneDx Holdings' overall GF Score™ is 65/100 with 1 warning sign 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 GeneDx Holdings (WGS), the current ROIC % is -19.35% as of Jun. 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 GeneDx Holdings (WGS) Overvalued in 2026?
Based on GuruFocus' analysis, GeneDx Holdings stock appears to be overvalued.
The current stock price of $90.32 is trading 22.4% above its estimated GF Value™ of $73.77.
GuruFocus considers GeneDx Holdings to be Modestly Overvalued.
Key valuation signals for WGS:
ROIC %: -19.35%
GF Value™: $73.77 vs. price of $90.32 (22.4% above fair value)
No single metric tells the full story. See the WGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GeneDx Holdings Corp focuses on genomics, creating the foundation for providing genomic information at scale and pioneering exome and genome sequencing for rare and ultra-rare genetic pediatric disorders. The company believes exome and genome testing will become the standard for diagnosing genetic disease, with the potential to transform healthcare from reactive to proactive. It aims to advance precision medicine by offering genetic diagnoses at the earliest moments, driving improved outcomes, and fueling discovery with genomic intelligence. Its operating segment mainly provides pediatric and rare disease diagnostics, focusing on whole exome and genome sequencing and, to a lesser extent, data and information services.
65GF Score
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