ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Productive Business Solutions's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 5.94%.
As of today (2026-06-30), Productive Business Solutions's WACC % is 7.52%. Productive Business Solutions's ROIC % is 5.94% (calculated using TTM income statement data).
Productive Business Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Productive Business Solutions (XJAM:PBS) 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, Productive Business Solutions's WACC % is 7.52%. Productive Business Solutions's ROIC % is 5.94% (calculated using TTM income statement data).
Productive Business Solutions 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.
Productive Business Solutions ROIC % Related Terms
Productive Business Solutions 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.
Productive Business Solutions ROIC % Competitor Comparison
For the Business Equipment & Supplies subindustry, Productive Business Solutions'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.
Productive Business Solutions ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Productive Business Solutions's ROIC % distribution charts can be found below:
* The bar in red indicates where Productive Business Solutions's ROIC % falls into.
Note:
The Operating Income data used here is one times the annual (Dec. 2024) 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.
Productive Business Solutions (XJAM:PBS) has a ROIC % of 5.94% as of Dec. 2024. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Productive Business Solutions and its competitors.
Is Productive Business Solutions' ROIC % too high?
Productive Business Solutions' current ROIC % is 5.94%. The Industrial Products industry median ROIC % is 5.21. Productive Business Solutions' value of 5.94% is 14% above this industry median. Overall, Productive Business Solutions has a GF Score™ of 91/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Productive Business Solutions' ROIC % compare to competitors?
Productive Business Solutions' ROIC % of 5.94% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.21. Productive Business Solutions' value of 5.94% is 14% 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 5.21, based on 3,033 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. Productive Business Solutions's current ROIC % of 5.94% is 14% 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 Productive Business Solutions and its competitors. For the Industrial Products industry, the median ROIC % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Productive Business Solutions's current ROIC % is 5.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Productive Business Solutions stock overvalued right now?
Based on GuruFocus' analysis, Productive Business Solutions (XJAM:PBS) is currently considered Possible Value Trap. The stock's GF Value™ is $2.23, compared to a current price of $0.34 — trading 84.6% below its estimated fair value. The current ROIC % is 5.94% and 14% above the Industrial Products industry median of 5.21. Productive Business Solutions' overall GF Score™ is 91/100 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 Productive Business Solutions (XJAM:PBS), the current ROIC % is 5.94% as of Dec. 2024. 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 Productive Business Solutions (XJAM:PBS) Overvalued in 2026?
Based on GuruFocus' analysis, Productive Business Solutions stock appears to be undervalued.
The current stock price of $0.34 is trading 84.6% below its estimated GF Value™ of $2.23.
GuruFocus considers Productive Business Solutions to be Possible Value Trap.
Key valuation signals for XJAM:PBS:
ROIC %: 5.94%
GF Value™: $2.23 vs. price of $0.34 (84.6% below fair value)
Industry Position: 14% above the Industrial Products median
No single metric tells the full story. See the XJAM:PBS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Productive Business Solutions Business Description
Productive Business Solutions Ltd is the distributor of printing equipment, business machines, handsets and related accessories, automated teller machines, security checkpoints, system integration, cloud services, data analytics, communication solutions, e-transactions, development of software and other technology solutions, along with subsidiaries. It has two reportable segments of business: Central America activities involved in the business of sale and leasing of reprographic products, including printing equipment, business machines, and related accessories to customers in the Central America Region; Caribbean activities include sale and leasing of reprographic products including printing equipment, business machines and related accessories to customers in the Caribbean region.
91GF Score
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