ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Pan Jamaica Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.88%.
As of today (2026-06-28), Pan Jamaica Group's WACC % is 9.36%. Pan Jamaica Group's ROIC % is 2.42% (calculated using TTM income statement data).
Pan Jamaica Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Pan Jamaica Group (XJAM:PJAM) 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, Pan Jamaica Group's WACC % is 9.36%. Pan Jamaica Group's ROIC % is 2.42% (calculated using TTM income statement data).
Pan Jamaica Group 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.
Pan Jamaica Group ROIC % Related Terms
Pan Jamaica Group ROIC % Historical Data
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The historical data trend for Pan Jamaica Group'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 Beverages - Non-Alcoholic subindustry, Pan Jamaica Group'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.
Pan Jamaica Group ROIC % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Pan Jamaica Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Pan Jamaica Group'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.
Pan Jamaica Group (XJAM:PJAM) has a ROIC % of 1.88% 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 Pan Jamaica Group and its competitors.
Is Pan Jamaica Group's ROIC % too high?
Pan Jamaica Group's current ROIC % is 1.88%. The Beverages - Non-Alcoholic industry median ROIC % is 8.72. Pan Jamaica Group's value of 1.88% is 78.4% below this industry median. Overall, Pan Jamaica Group has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pan Jamaica Group's ROIC % compare to KO and PEP?
Pan Jamaica Group's ROIC % of 1.88% can be compared against companies in the Beverages - Non-Alcoholic industry. The industry median ROIC % is 8.72. Pan Jamaica Group's value of 1.88% is 78.4% below 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 Beverages - Non-Alcoholic company?
The median ROIC % among Beverages - Non-Alcoholic companies is 8.72, based on 114 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. Pan Jamaica Group's current ROIC % of 1.88% is 78.4% below 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 Pan Jamaica Group and its competitors. For the Beverages - Non-Alcoholic industry, the median ROIC % is 8.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pan Jamaica Group's current ROIC % is 1.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pan Jamaica Group stock overvalued right now?
Based on GuruFocus' analysis, Pan Jamaica Group (XJAM:PJAM) is currently considered Modestly Undervalued. The stock's GF Value™ is JMD62.71, compared to a current price of JMD45.71 — trading 27.1% below its estimated fair value. The current ROIC % is 1.88% and 78.4% below the Beverages - Non-Alcoholic industry median of 8.72. Pan Jamaica Group's overall GF Score™ is 98/100 with 6 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 Pan Jamaica Group (XJAM:PJAM), the current ROIC % is 1.88% 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 Pan Jamaica Group (XJAM:PJAM) Overvalued in 2026?
Based on GuruFocus' analysis, Pan Jamaica Group stock appears to be undervalued.
The current stock price of JMD45.71 is trading 27.1% below its estimated GF Value™ of JMD62.71.
GuruFocus considers Pan Jamaica Group to be Modestly Undervalued.
Key valuation signals for XJAM:PJAM:
ROIC %: 1.88%
GF Value™: JMD62.71 vs. price of JMD45.71 (27.1% below fair value)
Industry Position: 78.4% below the Beverages - Non-Alcoholic median
No single metric tells the full story. See the XJAM:PJAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pan Jamaica Group Ltd is a Caribbean-based multinational holding company. It acquires, holds, and operates businesses in the Caribbean, Europe and the Americas. The company's business is divided into five segments: i) The Property and Infrastructure segment focuses on the development and management of real estate and related infrastructure. ii) The Financial Services segment provides products and services to institutional and individual investors. iii) The Global Services segment includes logistics-related operations. iv) The Specialty Foods segment is engaged in agriculture, processing, distribution and/or retail of food and drink. v) Corporate services, which comprises interest and investment income. The majority of the company's revenue is derived from the Specialty Foods segment.
98GF Score
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