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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 %. Neco Insurance Co's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2026 was 5.59%.
As of today (2026-08-06), Neco Insurance Co's WACC % is 10.68%. Neco Insurance Co's ROIC % is 3.67% (calculated using TTM income statement data).
Neco Insurance Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Neco Insurance Co's WACC % is 10.68%. Neco Insurance Co's ROIC % is 3.67% (calculated using TTM income statement data).
Neco Insurance Co 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.
Neco Insurance Co ROIC % Related Terms
Neco Insurance Co ROIC % Historical Data
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The historical data trend for Neco Insurance Co'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 Insurance - Diversified subindustry, Neco Insurance Co'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.
Neco Insurance Co ROIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, Neco Insurance Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Neco Insurance Co's ROIC % falls into.
Note:
The EBIT data used here is four times the quarterly (Apr. 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.
Neco Insurance Co (XNEP:NIL) has a ROIC % of 5.59% as of Apr. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Neco Insurance Co and its competitors.
Is Neco Insurance Co's ROIC % too high?
Neco Insurance Co's current ROIC % is 5.59%. The Insurance industry median ROIC % is 3.36. Neco Insurance Co's value of 5.59% is 66.4% above this industry median. Overall, Neco Insurance Co has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Neco Insurance Co's ROIC % compare to BRK.A and AIG?
Neco Insurance Co's ROIC % of 5.59% can be compared against companies in the Insurance industry. The industry median ROIC % is 3.36. Neco Insurance Co's value of 5.59% is 66.4% 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 Insurance company?
The median ROIC % among Insurance companies is 3.36, based on 369 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. Neco Insurance Co's current ROIC % of 5.59% is 66.4% 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 Neco Insurance Co and its competitors. For the Insurance industry, the median ROIC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neco Insurance Co's current ROIC % is 5.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neco Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, Neco Insurance Co (XNEP:NIL) is currently considered Modestly Undervalued. The stock's GF Value™ is NPR735.70, compared to a current price of NPR617.10 — trading 16.1% below its estimated fair value. The current ROIC % is 5.59% and 66.4% above the Insurance industry median of 3.36. Neco Insurance Co's overall GF Score™ is 98/100 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 Neco Insurance Co (XNEP:NIL), the current ROIC % is 5.59% as of Apr. 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 Neco Insurance Co (XNEP:NIL) Overvalued in 2026?
Based on GuruFocus' analysis, Neco Insurance Co stock appears to be undervalued.
The current stock price of NPR617.10 is trading 16.1% below its estimated GF Value™ of NPR735.70.
GuruFocus considers Neco Insurance Co to be Modestly Undervalued.
Key valuation signals for XNEP:NIL:
ROIC %: 5.59%
GF Value™: NPR735.70 vs. price of NPR617.10 (16.1% below fair value)
Industry Position: 66.4% above the Insurance median
No single metric tells the full story. See the XNEP:NIL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Neco Insurance Co Ltd is a non-life insurance company. The firm's business segment comprises Aviation, Engineering, Fire, Marine, Motor, Micro, Cattle and Crop, and Miscellaneous. The company underwrites all types of general insurance risk through different kinds of policies prevailing in the market under seven categories, i.e., Property, Motor, Aviation, Marine, Engineering, Agriculture, and Miscellaneous.
98GF Score
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