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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 %. Harel Insurance Investments & Financial Services's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 2.79%.
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, Harel Insurance Investments & Financial Services's WACC % is 8.53%. Harel Insurance Investments & Financial Services's ROIC % is 2.87% (calculated using TTM income statement data).
Harel Insurance Investments & Financial Services 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.
Harel Insurance Investments & Financial Services ROIC % Related Terms
Harel Insurance Investments & Financial Services ROIC % Historical Data
* 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.
* 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.
Harel Insurance Investments & Financial Services ROIC % vs Insurance Industry
Note:
The EBIT data used here is four times the quarterly (Jun. 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.
Harel Insurance Investments & Financial Services (XTAE:HARL) has a ROIC % of 2.79% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Harel Insurance Investments & Financial Services and its competitors.
Is Harel Insurance Investments & Financial Services' ROIC % too high?
Harel Insurance Investments & Financial Services' current ROIC % is 2.79%. The Insurance industry median ROIC % is 3.43. Harel Insurance Investments & Financial Services' value of 2.79% is 18.7% below this industry median. Overall, Harel Insurance Investments & Financial Services has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Harel Insurance Investments & Financial Services' ROIC % compare to BRK.A and AIG?
Harel Insurance Investments & Financial Services' ROIC % of 2.79% can be compared against companies in the Insurance industry. The industry median ROIC % is 3.43. Harel Insurance Investments & Financial Services' value of 2.79% is 18.7% 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 an Insurance company?
The median ROIC % among Insurance companies is 3.43, based on 361 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. Harel Insurance Investments & Financial Services's current ROIC % of 2.79% is 18.7% 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 Harel Insurance Investments & Financial Services and its competitors. For the Insurance industry, the median ROIC % is 3.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Harel Insurance Investments & Financial Services's current ROIC % is 2.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Harel Insurance Investments & Financial Services stock overvalued right now?
Based on GuruFocus' analysis, Harel Insurance Investments & Financial Services (XTAE:HARL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₪76.48, compared to a current price of ₪200.00 — trading 161.5% above its estimated fair value. The current ROIC % is 2.79% and 18.7% below the Insurance industry median of 3.43. Harel Insurance Investments & Financial Services' overall GF Score™ is 75/100 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 Harel Insurance Investments & Financial Services (XTAE:HARL), the current ROIC % is 2.79% as of Jun. 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 Harel Insurance Investments & Financial Services (XTAE:HARL) Overvalued in 2026?
Based on GuruFocus' analysis, Harel Insurance Investments & Financial Services stock appears to be overvalued.
The current stock price of ₪200.00 is trading 161.5% above its estimated GF Value™ of ₪76.48.
GuruFocus considers Harel Insurance Investments & Financial Services to be Significantly Overvalued.
Key valuation signals for XTAE:HARL:
ROIC %: 2.79%
GF Value™: ₪76.48 vs. price of ₪200.00 (161.5% above fair value)
Industry Position: 18.7% below the Insurance median
No single metric tells the full story. See the XTAE:HARL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Harel Insurance Investments & Financial Services Ltd is a diversified insurance company that offers a selection of life insurance policies, health insurance, nursing insurance, travel insurance, car insurance, and rent and property insurance to residential and commercial customers in Israel. The company also generates revenue through investment portfolio management, mutual funds, and exchange-traded funds. Its operating segments include Life assurance and long-term savings, Health insurance, and Non-life insurance. Non-life insurance consists of five sub-segments: Motor property (CASCO); Compulsory motor; Other liabilities sectors; Property and other sectors; and Credit insurance for residential mortgages and development and operating services for mortgage portfolios.
75GF Score
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