ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Newron Pharmaceuticals SpA's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -27.61%.
As of today (2026-06-29), Newron Pharmaceuticals SpA's WACC % is 13.95%. Newron Pharmaceuticals SpA's ROIC % is -10.30% (calculated using TTM income statement data).
Newron Pharmaceuticals SpA earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Newron Pharmaceuticals SpA's WACC % is 13.95%. Newron Pharmaceuticals SpA's ROIC % is -10.30% (calculated using TTM income statement data).
Newron Pharmaceuticals SpA 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.
* 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 Biotechnology subindustry, Newron Pharmaceuticals SpA'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.
Newron Pharmaceuticals SpA ROIC % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Newron Pharmaceuticals SpA's ROIC % distribution charts can be found below:
* The bar in red indicates where Newron Pharmaceuticals SpA's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 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.
Newron Pharmaceuticals SpA (XSWX:NWRN) has a ROIC % of -27.61% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Newron Pharmaceuticals SpA and its competitors.
Is Newron Pharmaceuticals SpA's ROIC % too high?
Newron Pharmaceuticals SpA's current ROIC % is -27.61%. Overall, Newron Pharmaceuticals SpA has a GF Score™ of 62/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Newron Pharmaceuticals SpA's ROIC % compare to VRTX and REGN?
Newron Pharmaceuticals SpA's ROIC % of -27.61% can be compared against companies in the Biotechnology industry. 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 Biotechnology company?
A good ROIC % depends on the Biotechnology industry context. 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 Newron Pharmaceuticals SpA and its competitors. Newron Pharmaceuticals SpA's current ROIC % is -27.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Newron Pharmaceuticals SpA stock overvalued right now?
Based on GuruFocus' analysis, Newron Pharmaceuticals SpA (XSWX:NWRN) is currently considered Fairly Valued. The stock's GF Value™ is CHF12.92, compared to a current price of CHF12.64 — trading 2.2% below its estimated fair value. The current ROIC % is -27.61%. Newron Pharmaceuticals SpA's overall GF Score™ is 62/100 with 5 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 Newron Pharmaceuticals SpA (XSWX:NWRN), the current ROIC % is -27.61% as of Dec. 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 Newron Pharmaceuticals SpA (XSWX:NWRN) Overvalued in 2026?
Based on GuruFocus' analysis, Newron Pharmaceuticals SpA stock appears to be undervalued.
The current stock price of CHF12.64 is trading 2.2% below its estimated GF Value™ of CHF12.92.
GuruFocus considers Newron Pharmaceuticals SpA to be Fairly Valued.
Key valuation signals for XSWX:NWRN:
ROIC %: -27.61%
GF Value™: CHF12.92 vs. price of CHF12.64 (2.2% below fair value)
No single metric tells the full story. See the XSWX:NWRN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Newron Pharmaceuticals SpA is a Italy-based clinical-stage biopharmaceutical company. It focuses on the discovery and development of pharmaceutical products. The Company is engaged in discovering and developing new therapies for diseases of the Central Nervous System (CNS) and pain. The Company undertakes phase III trials with safinamide molecule for the treatment of patients with Parkinson's disease. Newron Pharmaceuticals SpA develops ralfinamide, a molecule for the treatment of neuropathic pain. Geographically the research and development activities are performed in Italy and the United States.
62GF Score
Get the complete analysis for XSWX:NWRN
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:NWRN has been successfully added to your 
