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 Kraft Heinz Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.87%.
As of today (2026-06-24), The Kraft Heinz Co's WACC % is 4.97%. The Kraft Heinz Co's ROIC % is 6.00% (calculated using TTM income statement data).
The Kraft Heinz Co 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.
The Kraft Heinz Co (XSWX:KHC) 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, The Kraft Heinz Co's WACC % is 4.97%. The Kraft Heinz Co's ROIC % is 6.00% (calculated using TTM income statement data).
The Kraft Heinz Co 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.
The Kraft Heinz Co ROIC % Related Terms
The Kraft Heinz Co ROIC % Historical Data
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The historical data trend for The Kraft Heinz 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 Packaged Foods subindustry, The Kraft Heinz 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.
The Kraft Heinz Co ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Kraft Heinz Co's ROIC % distribution charts can be found below:
* The bar in red indicates where The Kraft Heinz Co'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.
The Kraft Heinz Co (XSWX:KHC) has a ROIC % of 4.87% 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 The Kraft Heinz Co and its competitors.
Is The Kraft Heinz Co's ROIC % too high?
The Kraft Heinz Co's current ROIC % is 4.87%. The Consumer Packaged Goods industry median ROIC % is 5.16. The Kraft Heinz Co's value of 4.87% is 5.6% below this industry median. Overall, The Kraft Heinz Co has a GF Score™ of 59/100, reflecting its overall financial health beyond just this single metric.
How does The Kraft Heinz Co's ROIC % compare to GIS and JBS?
The Kraft Heinz Co's ROIC % of 4.87% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.16. The Kraft Heinz Co's value of 4.87% is 5.6% below 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 Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.16, based on 1,948 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. The Kraft Heinz Co's current ROIC % of 4.87% is 5.6% below 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 The Kraft Heinz Co and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Kraft Heinz Co's current ROIC % is 4.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Kraft Heinz Co stock overvalued right now?
The Kraft Heinz Co (XSWX:KHC) has a current ROIC % of 4.87%. The stock's GF Value™ is CHF24.90, compared to a current price of CHF18.27 — trading 26.6% below its estimated fair value. The current ROIC % is 4.87% and 5.6% below the Consumer Packaged Goods industry median of 5.16. The Kraft Heinz Co's overall GF Score™ is 59/100 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 The Kraft Heinz Co (XSWX:KHC), the current ROIC % is 4.87% 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 The Kraft Heinz Co (XSWX:KHC) Overvalued in 2026?
Based on GuruFocus' analysis, The Kraft Heinz Co stock appears to be undervalued.
The current stock price of CHF18.27 is trading 26.6% below its estimated GF Value™ of CHF24.90.
Key valuation signals for XSWX:KHC:
ROIC %: 4.87%
GF Value™: CHF24.90 vs. price of CHF18.27 (26.6% below fair value)
Industry Position: 5.6% below the Consumer Packaged Goods median
No single metric tells the full story. See the XSWX:KHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
In July 2015, Kraft merged with Heinz to create one of North America's largest food and beverage manufacturers. Beyond its namesake brands, its portfolio includes Oscar Mayer, Velveeta, and Philadelphia. While the retail channel drives around 85% of its total sales, the firm also maintains a growing foodservice presence. Outside North America, Kraft Heinz's global reach encompasses a distribution network in Europe and emerging markets, which accounts for around 25% of its consolidated sales base. The company's products are sold in more than 190 countries and territories.
59GF Score
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