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Consilient Observer
Juni 06, 2023

ROIC and the Investment Process

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Juni 06, 2023

ROIC and the Investment Process

Consilient Observer

ROIC and the Investment Process

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Juni 06, 2023


ROICs, How They Change, and Shareholder Returns

  • This report extends our analysis of the return on invested capital (ROIC) for public companies in the U.S. and updates the data to cover the years 1990 to 2022.
  • We examine the relationship between changes in ROIC and total shareholder returns (TSRs) and generally find that increases in ROIC are associated with attractive TSRs and decreases with poor TSRs.
  • We analyze the movement of companies from one quintile of ROIC to another and observe that those that meaningfully change their ranking often provide opportunity for outsized returns.
  • We quantify the rate of regression toward the mean for various sectors, which offers insight into why companies in certain sectors trade at higher valuations than those in other sectors.
  • Companies that delivered high and sustained ROICs exceeded their peers in both net operating profit after taxes (NOPAT) margin and invested capital turnover, but NOPAT margin was a significantly more important driver.
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Das Counterpoint Global Team ist bestrebt, langfristige Investitionen in einzigartige Unternehmen zu tätigen, deren Marktwert aus fundamentalen Gründen deutlich steigen kann. Ihre Portfolios sind in der Regel konzentriert und unterscheiden sich von ihren Benchmarks. Das Team besteht aus 26 Personen, darunter 16 Investment-Profis und zwei Disruptive Change-Forscher. Die Kultur des Teams fördert Zusammenarbeit, Kreativität, eine kontinuierliche Entwicklung und differenziertes Denken.

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Net Operating Profit After Tax (NOPAT) represents the hypothetical operating income of a company if its capital structure was all-equity. The NOPAT margin is the ratio between a company's net operating profit after tax (NOPAT) and revenue.

Total Shareholder Return (TSR) is the total amount of money that a shareholder would make from each individual stock.

Return On Invested Capital (ROIC) represents the rate of return a company makes on the cash it invests in its business.


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Any charts and graphs provided are for illustrative purposes only. Any performance quoted represents past performance. Past performance does not guarantee future results. All investments involve risks, including the possible loss of principal.

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