ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Revenga Ingenieros's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 3.50%.
As of today (2026-06-25), Revenga Ingenieros's WACC % is 0.00%. Revenga Ingenieros's ROIC % is 0.00% (calculated using TTM income statement data).
Revenga Ingenieros earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Revenga Ingenieros (XMAD:RSS) 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, Revenga Ingenieros's WACC % is 0.00%. Revenga Ingenieros's ROIC % is 0.00% (calculated using TTM income statement data).
Revenga Ingenieros 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.
Revenga Ingenieros ROIC % Related Terms
Revenga Ingenieros ROIC % Historical Data
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The historical data trend for Revenga Ingenieros'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 Information Technology Services subindustry, Revenga Ingenieros'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.
Revenga Ingenieros ROIC % vs Software Industry
For the Software industry and Technology sector, Revenga Ingenieros's ROIC % distribution charts can be found below:
* The bar in red indicates where Revenga Ingenieros's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Jun. 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.
Revenga Ingenieros (XMAD:RSS) has a ROIC % of 3.50% as of Jun. 2024. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Revenga Ingenieros and its competitors.
Is Revenga Ingenieros' ROIC % too high?
Revenga Ingenieros' current ROIC % is 3.50%. The Software industry median ROIC % is 3.11. Revenga Ingenieros' value of 3.50% is 12.7% above this industry median. Overall, Revenga Ingenieros has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Revenga Ingenieros' ROIC % compare to IBM and ACN?
Revenga Ingenieros' ROIC % of 3.50% can be compared against companies in the Software industry. The industry median ROIC % is 3.11. Revenga Ingenieros' value of 3.50% is 12.7% 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 Software company?
The median ROIC % among Software companies is 3.11, based on 2,828 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. Revenga Ingenieros's current ROIC % of 3.50% is 12.7% 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 Revenga Ingenieros and its competitors. For the Software industry, the median ROIC % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Revenga Ingenieros's current ROIC % is 3.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Revenga Ingenieros stock overvalued right now?
Revenga Ingenieros (XMAD:RSS) has a current ROIC % of 3.50%. The current ROIC % is 3.50% and 12.7% above the Software industry median of 3.11. Revenga Ingenieros' overall GF Score™ is 10/100. 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 Revenga Ingenieros (XMAD:RSS), the current ROIC % is 3.50% as of Jun. 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.
Revenga Ingenieros SA is a company engaged in the development of comprehensive solutions for telecommunications, information technologies, electronic security and railway systems. The technologies that support the company's activity are grouped into four parts such as Railway systems includes point heaters, level crossing protection, train monitoring systems, etc, Telecommunications networks includes implementing all types of telecommunications networks, both passive elements and equipment (SDH, DWDM, MPLS, WIFI/WIMAX, LTE, etc.). Information technologies provides voice, data and video solutions and Electronic security involves access management and detection through RFID, video surveillance, video analysis, biometrics, vehicle identification, detector systems, etc.
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