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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 %. Hydraulic Elements and Systems AD's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 22.68%.
As of today (2026-07-20), Hydraulic Elements and Systems AD's WACC % is 10.38%. Hydraulic Elements and Systems AD's ROIC % is 12.03% (calculated using TTM income statement data).
Hydraulic Elements and Systems AD 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.
Hydraulic Elements and Systems AD (XBUL:HES) 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, Hydraulic Elements and Systems AD's WACC % is 10.38%. Hydraulic Elements and Systems AD's ROIC % is 12.03% (calculated using TTM income statement data).
Hydraulic Elements and Systems AD 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.
Hydraulic Elements and Systems AD ROIC % Related Terms
Hydraulic Elements and Systems AD 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 Specialty Industrial Machinery subindustry, Hydraulic Elements and Systems AD'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.
Hydraulic Elements and Systems AD ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hydraulic Elements and Systems AD's ROIC % distribution charts can be found below:
* The bar in red indicates where Hydraulic Elements and Systems AD'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.
Hydraulic Elements and Systems AD (XBUL:HES) has a ROIC % of 22.68% 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 Hydraulic Elements and Systems AD and its competitors.
Is Hydraulic Elements and Systems AD's ROIC % too high?
Hydraulic Elements and Systems AD's current ROIC % is 22.68%. The Industrial Products industry median ROIC % is 5.18. Hydraulic Elements and Systems AD's value of 22.68% is 337.8% above this industry median. Overall, Hydraulic Elements and Systems AD has a GF Score™ of 64/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hydraulic Elements and Systems AD's ROIC % compare to GEV and ETN?
Hydraulic Elements and Systems AD's ROIC % of 22.68% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.18. Hydraulic Elements and Systems AD's value of 22.68% is 337.8% 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 an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.18, based on 3,031 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. Hydraulic Elements and Systems AD's current ROIC % of 22.68% is 337.8% 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 Hydraulic Elements and Systems AD and its competitors. For the Industrial Products industry, the median ROIC % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hydraulic Elements and Systems AD's current ROIC % is 22.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hydraulic Elements and Systems AD stock overvalued right now?
Based on GuruFocus' analysis, Hydraulic Elements and Systems AD (XBUL:HES) is currently considered Significantly Undervalued. The stock's GF Value™ is €5.59, compared to a current price of €2.70 — trading 51.7% below its estimated fair value. The current ROIC % is 22.68% and 337.8% above the Industrial Products industry median of 5.18. Hydraulic Elements and Systems AD's overall GF Score™ is 64/100 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 Hydraulic Elements and Systems AD (XBUL:HES), the current ROIC % is 22.68% 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 Hydraulic Elements and Systems AD (XBUL:HES) Overvalued in 2026?
Based on GuruFocus' analysis, Hydraulic Elements and Systems AD stock appears to be undervalued.
The current stock price of €2.70 is trading 51.7% below its estimated GF Value™ of €5.59.
GuruFocus considers Hydraulic Elements and Systems AD to be Significantly Undervalued.
Key valuation signals for XBUL:HES:
ROIC %: 22.68%
GF Value™: €5.59 vs. price of €2.70 (51.7% below fair value)
Industry Position: 337.8% above the Industrial Products median
No single metric tells the full story. See the XBUL:HES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hydraulic Elements and Systems AD Business Description
Hydraulic Elements and Systems AD is a manufacturer of hydraulic machines & equipment. The Company designs, manufactures and services hydraulic cylinders, single-acting and double-acting piston cylinders.
64GF Score
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