ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. NIBE Industrier AB's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.39%.
As of today (2026-06-25), NIBE Industrier AB's WACC % is 6.13%. NIBE Industrier AB's ROIC % is 5.02% (calculated using TTM income statement data).
NIBE Industrier AB earns returns that do not match up to its cost of capital. It will destroy value as it grows.
NIBE Industrier AB (XSWX:NIBEB) 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, NIBE Industrier AB's WACC % is 6.13%. NIBE Industrier AB's ROIC % is 5.02% (calculated using TTM income statement data).
NIBE Industrier AB 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.
NIBE Industrier AB ROIC % Related Terms
NIBE Industrier AB ROIC % Historical Data
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The historical data trend for NIBE Industrier AB'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 Building Products & Equipment subindustry, NIBE Industrier AB'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.
NIBE Industrier AB ROIC % vs Construction Industry
For the Construction industry and Industrials sector, NIBE Industrier AB's ROIC % distribution charts can be found below:
* The bar in red indicates where NIBE Industrier AB'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.
NIBE Industrier AB (XSWX:NIBEB) has a ROIC % of 4.39% 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 NIBE Industrier AB and its competitors.
Is NIBE Industrier AB's ROIC % too high?
NIBE Industrier AB's current ROIC % is 4.39%. The Construction industry median ROIC % is 4.65. NIBE Industrier AB's value of 4.39% is 5.6% below this industry median. Overall, NIBE Industrier AB has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NIBE Industrier AB's ROIC % compare to TT and JCI?
NIBE Industrier AB's ROIC % of 4.39% can be compared against companies in the Construction industry. The industry median ROIC % is 4.65. NIBE Industrier AB's value of 4.39% 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 Construction company?
The median ROIC % among Construction companies is 4.65, based on 1,755 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. NIBE Industrier AB's current ROIC % of 4.39% 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 NIBE Industrier AB and its competitors. For the Construction industry, the median ROIC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NIBE Industrier AB's current ROIC % is 4.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NIBE Industrier AB stock overvalued right now?
Based on GuruFocus' analysis, NIBE Industrier AB (XSWX:NIBEB) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF3.73, compared to a current price of CHF3.02 — trading 19% below its estimated fair value. The current ROIC % is 4.39% and 5.6% below the Construction industry median of 4.65. NIBE Industrier AB's overall GF Score™ is 89/100 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 NIBE Industrier AB (XSWX:NIBEB), the current ROIC % is 4.39% 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 NIBE Industrier AB (XSWX:NIBEB) Overvalued in 2026?
Based on GuruFocus' analysis, NIBE Industrier AB stock appears to be undervalued.
The current stock price of CHF3.02 is trading 19% below its estimated GF Value™ of CHF3.73.
GuruFocus considers NIBE Industrier AB to be Modestly Undervalued.
Key valuation signals for XSWX:NIBEB:
ROIC %: 4.39%
GF Value™: CHF3.73 vs. price of CHF3.02 (19% below fair value)
Industry Position: 5.6% below the Construction median
No single metric tells the full story. See the XSWX:NIBEB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NIBE Industrier AB manufactures and sells energy-efficient products for industrial and consumer use. The firm is organized into three segments by product type. The climate solutions segment, which generates the majority of revenue, sells HVAC systems and hot water heaters to homes, apartment buildings, and other large properties. The elements segment sells components and elements to multiple industries, including appliance manufacturers, home remodelers, energy, and automotive. The stoves segment sells energy-efficient stoves and chimney systems to residential and commercial customers. The vast majority of revenue comes from Europe.
89GF 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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