ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Ste Immo et d'Exp de l'Hotel Majestic's annualized return on invested capital (ROIC %) for the quarter that ended in Oct. 2025 was 16.69%.
As of today (2026-07-11), Ste Immo et d'Exp de l'Hotel Majestic's WACC % is 5.24%. Ste Immo et d'Exp de l'Hotel Majestic's ROIC % is 16.69% (calculated using TTM income statement data).
Ste Immo et d'Exp de l'Hotel Majestic 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.
Ste Immo et d'Exp de l'Hotel Majestic (XPAR:MLHMC) 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, Ste Immo et d'Exp de l'Hotel Majestic's WACC % is 5.24%. Ste Immo et d'Exp de l'Hotel Majestic's ROIC % is 16.69% (calculated using TTM income statement data).
Ste Immo et d'Exp de l'Hotel Majestic 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.
Ste Immo et d'Exp de l'Hotel Majestic ROIC % Related Terms
Ste Immo et d'Exp de l'Hotel Majestic ROIC % Historical Data
* 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.
Ste Immo et d'Exp de l'Hotel Majestic ROIC % Chart
Ste Immo et d'Exp de l'Hotel Majestic Annual Data
Trend
Oct23
Oct24
Oct25
ROIC %
21.02
19.49
16.69
Ste Immo et d'Exp de l'Hotel Majestic Semi-Annual Data
Oct23
Oct24
Oct25
ROIC %
21.02
19.49
16.69
XPAR:MLHMC vs LVS, MGM, WYNN: ROIC % Comparison
For the Resorts & Casinos subindustry, Ste Immo et d'Exp de l'Hotel Majestic'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.
Ste Immo et d'Exp de l'Hotel Majestic ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Ste Immo et d'Exp de l'Hotel Majestic's ROIC % distribution charts can be found below:
* The bar in red indicates where Ste Immo et d'Exp de l'Hotel Majestic's ROIC % falls into.
Note:
The Operating Income data used here is one times the annual (Oct. 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.
Ste Immo et d'Exp de l'Hotel Majestic (XPAR:MLHMC) has a ROIC % of 16.69% as of Oct. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Ste Immo et d'Exp de l'Hotel Majestic and its competitors.
Is Ste Immo et d'Exp de l'Hotel Majestic's ROIC % too high?
Ste Immo et d'Exp de l'Hotel Majestic's current ROIC % is 16.69%. The Travel & Leisure industry median ROIC % is 3.78. Ste Immo et d'Exp de l'Hotel Majestic's value of 16.69% is 341.5% above this industry median. Overall, Ste Immo et d'Exp de l'Hotel Majestic has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Ste Immo et d'Exp de l'Hotel Majestic's ROIC % compare to LVS and MGM?
Ste Immo et d'Exp de l'Hotel Majestic's ROIC % of 16.69% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.78. Ste Immo et d'Exp de l'Hotel Majestic's value of 16.69% is 341.5% 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 Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.78, based on 830 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. Ste Immo et d'Exp de l'Hotel Majestic's current ROIC % of 16.69% is 341.5% 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 Ste Immo et d'Exp de l'Hotel Majestic and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ste Immo et d'Exp de l'Hotel Majestic's current ROIC % is 16.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ste Immo et d'Exp de l'Hotel Majestic stock overvalued right now?
Ste Immo et d'Exp de l'Hotel Majestic (XPAR:MLHMC) has a current ROIC % of 16.69%. The current ROIC % is 16.69% and 341.5% above the Travel & Leisure industry median of 3.78. Ste Immo et d'Exp de l'Hotel Majestic's overall GF Score™ is 22/100 with 1 warning sign 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 Ste Immo et d'Exp de l'Hotel Majestic (XPAR:MLHMC), the current ROIC % is 16.69% as of Oct. 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.
Ste Immo et d'Exp de l'Hotel Majestic Business Description
Ste Immo et d'Exp de l'Hotel Majestic SA is a France-based company engaged in hotel management activities. It manages a five-star hotel Majestic Barriere, based in Cannes, France.
22GF Score
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