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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Elad Software Systems's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 21.31%.
As of today (2026-08-01), Elad Software Systems's WACC % is 9.39%. Elad Software Systems's ROIC % is 18.48% (calculated using TTM income statement data).
Elad Software Systems 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.
Elad Software Systems (XTAE:ELAD) 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, Elad Software Systems's WACC % is 9.39%. Elad Software Systems's ROIC % is 18.48% (calculated using TTM income statement data).
Elad Software Systems 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.
* 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.
Elad Software Systems ROIC % Chart
Elad Software Systems Annual Data
Trend
Dec24
Dec25
ROIC %
16.31
17.97
Elad Software Systems Semi-Annual Data
Jun24
Dec24
Jun25
Dec25
ROIC %
0.00
21.48
16.48
21.31
XTAE:ELAD vs QH, SHOP, UBER: ROIC % Comparison
For the Software - Application subindustry, Elad Software Systems'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.
Elad Software Systems ROIC % vs Software Industry
For the Software industry and Technology sector, Elad Software Systems's ROIC % distribution charts can be found below:
* The bar in red indicates where Elad Software Systems'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.
Elad Software Systems (XTAE:ELAD) has a ROIC % of 21.31% 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 Elad Software Systems and its competitors.
Is Elad Software Systems' ROIC % too high?
Elad Software Systems' current ROIC % is 21.31%. The Software industry median ROIC % is 3.13. Elad Software Systems' value of 21.31% is 580.8% above this industry median. Overall, Elad Software Systems has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does Elad Software Systems' ROIC % compare to QH and SHOP?
Elad Software Systems' ROIC % of 21.31% can be compared against companies in the Software industry. The industry median ROIC % is 3.13. Elad Software Systems' value of 21.31% is 580.8% 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 Software company?
The median ROIC % among Software companies is 3.13, based on 2,833 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. Elad Software Systems's current ROIC % of 21.31% is 580.8% 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 Elad Software Systems and its competitors. For the Software industry, the median ROIC % is 3.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elad Software Systems's current ROIC % is 21.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elad Software Systems stock overvalued right now?
Elad Software Systems (XTAE:ELAD) has a current ROIC % of 21.31%. The current ROIC % is 21.31% and 580.8% above the Software industry median of 3.13. Elad Software Systems' overall GF Score™ is 14/100. 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 Elad Software Systems (XTAE:ELAD), the current ROIC % is 21.31% 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.
Elad Software Systems specializes in managing and executing end-to-end projects and offers business solutions for strengthening communication with clients through three different channels: Data, CRM, and Digital. Its Data helps managers overcome complex business challenges by implementing data-based management and control tools using various technologies. Its CRM has long-term relationships with its clients and is a partner in the three multinational platforms: Salesforce, Dynamic 365, and Pega, as well as in the automation and integration company. Elad Digital is Israel's customer engagement company, helping businesses achieve its business needs and strengthen relationships with its clients by offering a range of end-to-end solutions.
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