ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. IBU-tec advanced materials AG's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 0.86%.
As of today (2026-07-07), IBU-tec advanced materials AG's WACC % is 13.69%. IBU-tec advanced materials AG's ROIC % is 0.00% (calculated using TTM income statement data).
IBU-tec advanced materials AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
IBU-tec advanced materials AG (XTER:IBU) 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, IBU-tec advanced materials AG's WACC % is 13.69%. IBU-tec advanced materials AG's ROIC % is 0.00% (calculated using TTM income statement data).
IBU-tec advanced materials AG 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.
IBU-tec advanced materials AG ROIC % Related Terms
IBU-tec advanced materials AG 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.
For the Chemicals subindustry, IBU-tec advanced materials AG'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.
IBU-tec advanced materials AG ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, IBU-tec advanced materials AG's ROIC % distribution charts can be found below:
* The bar in red indicates where IBU-tec advanced materials AG'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.
IBU-tec advanced materials AG (XTER:IBU) has a ROIC % of 0.86% 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 IBU-tec advanced materials AG and its competitors.
Is IBU-tec advanced materials AG's ROIC % too high?
IBU-tec advanced materials AG's current ROIC % is 0.86%. The Chemicals industry median ROIC % is 4.47. IBU-tec advanced materials AG's value of 0.86% is 80.8% below this industry median. Overall, IBU-tec advanced materials AG has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IBU-tec advanced materials AG's ROIC % compare to DOW?
IBU-tec advanced materials AG's ROIC % of 0.86% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.47. IBU-tec advanced materials AG's value of 0.86% is 80.8% 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.47, based on 1,575 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. IBU-tec advanced materials AG's current ROIC % of 0.86% is 80.8% 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 IBU-tec advanced materials AG and its competitors. For the Chemicals industry, the median ROIC % is 4.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IBU-tec advanced materials AG's current ROIC % is 0.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IBU-tec advanced materials AG stock overvalued right now?
Based on GuruFocus' analysis, IBU-tec advanced materials AG (XTER:IBU) is currently considered Significantly Overvalued. The stock's GF Value™ is €10.66, compared to a current price of €15.30 — trading 43.5% above its estimated fair value. The current ROIC % is 0.86% and 80.8% below the Chemicals industry median of 4.47. IBU-tec advanced materials AG's overall GF Score™ is 78/100 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 IBU-tec advanced materials AG (XTER:IBU), the current ROIC % is 0.86% 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 IBU-tec advanced materials AG (XTER:IBU) Overvalued in 2026?
Based on GuruFocus' analysis, IBU-tec advanced materials AG stock appears to be overvalued.
The current stock price of €15.30 is trading 43.5% above its estimated GF Value™ of €10.66.
GuruFocus considers IBU-tec advanced materials AG to be Significantly Overvalued.
Key valuation signals for XTER:IBU:
ROIC %: 0.86%
GF Value™: €10.66 vs. price of €15.30 (43.5% above fair value)
Industry Position: 80.8% below the Chemicals median
No single metric tells the full story. See the XTER:IBU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IBU-tec advanced materials AG Business Description
IBU-tec advanced materials AG develops and produces quality materials for industry. Target markets of the company include the chemical, pharmaceutical, plastics, paints, automotive industries, and others. The company acts both as a service provider for development and production and as a manufacturer of its materials. Their products and services cover the entire value chain from wet chemistry to thermal process engineering. With its products as battery materials, glass coatings, and specialty chemicals the IBU-tec Group places a special focus on green technologies.
78GF Score
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