ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Optare Solutions's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 10.33%.
As of today (2026-07-12), Optare Solutions's WACC % is 9.21%. Optare Solutions's ROIC % is 2.32% (calculated using TTM income statement data).
Optare Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Optare Solutions (XMAD:OPTS) 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, Optare Solutions's WACC % is 9.21%. Optare Solutions's ROIC % is 2.32% (calculated using TTM income statement data).
Optare 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.
Optare Solutions ROIC % Related Terms
Optare Solutions ROIC % Historical Data
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The historical data trend for Optare Solutions'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 Telecom Services subindustry, Optare 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.
Optare Solutions ROIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Optare Solutions's ROIC % distribution charts can be found below:
* The bar in red indicates where Optare Solutions's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) 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.
Optare Solutions (XMAD:OPTS) has a ROIC % of 10.33% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Optare Solutions and its competitors.
Is Optare Solutions' ROIC % too high?
Optare Solutions' current ROIC % is 10.33%. The Telecommunication Services industry median ROIC % is 4.53. Optare Solutions' value of 10.33% is 128% above this industry median. Overall, Optare Solutions has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Optare Solutions' ROIC % compare to TMUS and VZ?
Optare Solutions' ROIC % of 10.33% can be compared against companies in the Telecommunication Services industry. The industry median ROIC % is 4.53. Optare Solutions' value of 10.33% is 128% 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 Telecommunication Services company?
The median ROIC % among Telecommunication Services companies is 4.53, based on 361 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. Optare Solutions's current ROIC % of 10.33% is 128% 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 Optare Solutions and its competitors. For the Telecommunication Services industry, the median ROIC % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Optare Solutions's current ROIC % is 10.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Optare Solutions stock overvalued right now?
Optare Solutions (XMAD:OPTS) has a current ROIC % of 10.33%. The current ROIC % is 10.33% and 128% above the Telecommunication Services industry median of 4.53. Optare Solutions' overall GF Score™ is 21/100 with 4 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 Optare Solutions (XMAD:OPTS), the current ROIC % is 10.33% as of Dec. 2025. 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.
Optare Solutions SA is an information technology consultancy specializing in providing services to the telecommunications sector. The group operates in Development and Implementation, Consulting and Architecture, and Maintenance and Operation.
21GF Score
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