ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Tropical Resorts International's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 36.31%.
As of today (2026-06-27), Tropical Resorts International's WACC % is 10.46%. Tropical Resorts International's ROIC % is 14.43% (calculated using TTM income statement data).
Tropical Resorts International 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.
Tropical Resorts International (XPTY:TRES) 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, Tropical Resorts International's WACC % is 10.46%. Tropical Resorts International's ROIC % is 14.43% (calculated using TTM income statement data).
Tropical Resorts International 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.
Tropical Resorts International ROIC % Related Terms
Tropical Resorts International 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.
For the Lodging subindustry, Tropical Resorts International'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.
Tropical Resorts International ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Tropical Resorts International's ROIC % distribution charts can be found below:
* The bar in red indicates where Tropical Resorts International's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 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.
Tropical Resorts International (XPTY:TRES) has a ROIC % of 36.31% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Tropical Resorts International and its competitors.
Is Tropical Resorts International's ROIC % too high?
Tropical Resorts International's current ROIC % is 36.31%. The Travel & Leisure industry median ROIC % is 3.75. Tropical Resorts International's value of 36.31% is 868.3% above this industry median. Overall, Tropical Resorts International has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does Tropical Resorts International's ROIC % compare to MAR and HLT?
Tropical Resorts International's ROIC % of 36.31% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.75. Tropical Resorts International's value of 36.31% is 868.3% 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 3.75, based on 834 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. Tropical Resorts International's current ROIC % of 36.31% is 868.3% 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 Tropical Resorts International and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tropical Resorts International's current ROIC % is 36.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tropical Resorts International stock overvalued right now?
Tropical Resorts International (XPTY:TRES) has a current ROIC % of 36.31%. The stock's GF Value™ is $11.75, compared to a current price of $10.00 — trading 14.9% below its estimated fair value. The current ROIC % is 36.31% and 868.3% above the Travel & Leisure industry median of 3.75. Tropical Resorts International's overall GF Score™ is 31/100 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 Tropical Resorts International (XPTY:TRES), the current ROIC % is 36.31% as of Mar. 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 Tropical Resorts International (XPTY:TRES) Overvalued in 2026?
Based on GuruFocus' analysis, Tropical Resorts International stock appears to be undervalued.
The current stock price of $10.00 is trading 14.9% below its estimated GF Value™ of $11.75.
Key valuation signals for XPTY:TRES:
ROIC %: 36.31%
GF Value™: $11.75 vs. price of $10.00 (14.9% below fair value)
Industry Position: 868.3% above the Travel & Leisure median
No single metric tells the full story. See the XPTY:TRES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tropical Resorts International Business Description
Tropical Resorts International Inc operates resorts mainly in Gamboa, Panama. The company operates Gamboa Rainforest resort that offers rooms and suites, swimming pool and gift shop, dining, and meetings and events space, and other amenities.
31GF Score
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