ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. BayWa AG's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2025 was -5.17%.
As of today (2026-07-03), BayWa AG's WACC % is 9.72%. BayWa AG's ROIC % is -9.00% (calculated using TTM income statement data).
BayWa AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
BayWa AG (XSWX:BYW6) 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, BayWa AG's WACC % is 9.72%. BayWa AG's ROIC % is -9.00% (calculated using TTM income statement data).
BayWa AG 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.
BayWa AG ROIC % Related Terms
BayWa AG ROIC % Historical Data
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The historical data trend for BayWa AG'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 Conglomerates subindustry, BayWa AG'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.
BayWa AG ROIC % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, BayWa AG's ROIC % distribution charts can be found below:
* The bar in red indicates where BayWa AG's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Jun. 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.
BayWa AG (XSWX:BYW6) has a ROIC % of -5.17% as of Jun. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on BayWa AG and its competitors.
Is BayWa AG's ROIC % too high?
BayWa AG's current ROIC % is -5.17%. Overall, BayWa AG has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does BayWa AG's ROIC % compare to HON and MMM?
BayWa AG's ROIC % of -5.17% can be compared against companies in the Conglomerates industry. The industry median ROIC % is 2.79. 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 Conglomerates company?
The median ROIC % among Conglomerates companies is 2.79, based on 553 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 BayWa AG and its competitors. For the Conglomerates industry, the median ROIC % is 2.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BayWa AG's current ROIC % is -5.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BayWa AG stock overvalued right now?
BayWa AG (XSWX:BYW6) has a current ROIC % of -5.17%. The stock's GF Value™ is CHF1.39, compared to a current price of CHF2.39 — trading 71.9% above its estimated fair value. The current ROIC % is -5.17%. BayWa AG's overall GF Score™ is 63/100 with 6 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 BayWa AG (XSWX:BYW6), the current ROIC % is -5.17% as of Jun. 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.
Is BayWa AG (XSWX:BYW6) Overvalued in 2026?
Based on GuruFocus' analysis, BayWa AG stock appears to be overvalued.
The current stock price of CHF2.39 is trading 71.9% above its estimated GF Value™ of CHF1.39.
Key valuation signals for XSWX:BYW6:
ROIC %: -5.17%
GF Value™: CHF1.39 vs. price of CHF2.39 (71.9% above fair value)
No single metric tells the full story. See the XSWX:BYW6 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BayWa AG is a trading and logistics services company that operates through segments: Agri Trade & Service, Agricultural Equipment, The Renewable Energies segment, which is the majority revenue generator, Heating & Mobility, and Building Materials. The group's core market is in Germany, Austria, and the Netherlands.
63GF Score
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ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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