ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. L agence Automobiliere's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was -4.35%.
As of today (2026-07-07), L agence Automobiliere's WACC % is -5.51%. L agence Automobiliere's ROIC % is -4.34% (calculated using TTM income statement data).
L agence Automobiliere generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
L agence Automobiliere (XPAR:MLAA) 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, L agence Automobiliere's WACC % is -5.51%. L agence Automobiliere's ROIC % is -4.34% (calculated using TTM income statement data).
L agence Automobiliere generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
* 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.
L agence Automobiliere ROIC % Chart
L agence Automobiliere Annual Data
Trend
Dec19
Dec20
Dec23
Dec24
ROIC %
8.87
-5.08
4.18
-4.35
L agence Automobiliere Semi-Annual Data
Dec19
Dec20
Dec23
Dec24
ROIC %
8.87
-5.08
4.18
-4.35
XPAR:MLAA vs CVNA, PAG, ALTB: ROIC % Comparison
For the Auto & Truck Dealerships subindustry, L agence Automobiliere'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.
L agence Automobiliere ROIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, L agence Automobiliere's ROIC % distribution charts can be found below:
* The bar in red indicates where L agence Automobiliere'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.
L agence Automobiliere (XPAR:MLAA) has a ROIC % of -4.35% 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 L agence Automobiliere and its competitors.
Is L agence Automobiliere's ROIC % too high?
L agence Automobiliere's current ROIC % is -4.35%. Overall, L agence Automobiliere has a GF Score™ of 33/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does L agence Automobiliere's ROIC % compare to CVNA and PAG?
L agence Automobiliere's ROIC % of -4.35% can be compared against companies in the Vehicles & Parts industry. The industry median ROIC % is 5.07. 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 Vehicles & Parts company?
The median ROIC % among Vehicles & Parts companies is 5.07, based on 1,312 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. 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 L agence Automobiliere and its competitors. For the Vehicles & Parts industry, the median ROIC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L agence Automobiliere's current ROIC % is -4.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L agence Automobiliere stock overvalued right now?
Based on GuruFocus' analysis, L agence Automobiliere (XPAR:MLAA) is currently considered Possible Value Trap. The stock's GF Value™ is €5.49, compared to a current price of €2.20 — trading 59.9% below its estimated fair value. The current ROIC % is -4.35%. L agence Automobiliere's overall GF Score™ is 33/100 with 2 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 L agence Automobiliere (XPAR:MLAA), the current ROIC % is -4.35% 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 L agence Automobiliere (XPAR:MLAA) Overvalued in 2026?
Based on GuruFocus' analysis, L agence Automobiliere stock appears to be undervalued.
The current stock price of €2.20 is trading 59.9% below its estimated GF Value™ of €5.49.
GuruFocus considers L agence Automobiliere to be Possible Value Trap.
Key valuation signals for XPAR:MLAA:
ROIC %: -4.35%
GF Value™: €5.49 vs. price of €2.20 (59.9% below fair value)
No single metric tells the full story. See the XPAR:MLAA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
L agence Automobiliere SA is specialized in the purchase and sale of used vehicles. The company also offers services in financing, insurance, assistance and other. It has over 90 branches located in Europe.
33GF Score
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