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ROIC Screener — Filter Stocks by Return on Invested Capital
Mid and large-cap stocks ranked by return on invested capital, with every row labeled by WACC-spread quality tier. Instantly see which businesses earn above their cost of capital — then pair with the ROIC guide, ROE Screener, and Magic Formula Screener to build a quality shortlist.
How to Read ROIC Data
Return on invested capital answers the most important question in fundamental investing: for every dollar of total capital — debt and equity combined — how much profit does this business generate each year? A 20% ROIC means $0.20 of operating profit per dollar of invested capital. It is the single best measure of capital efficiency because it looks at the whole balance sheet, not just the equity slice, and it is the number that separates businesses that create long-run shareholder value from those that destroy it.
The WACC-spread quality tier badge is the bookmark feature of this screener. Rather than making you eyeball a wall of percentages, every row is labeled: Elite Compounder for ROIC above 20%, Strong for 15–20%, Average for 8–15%, and Weak below 8%. These cutoffs map to the typical range of a company's weighted average cost of capital (WACC), which runs 8–12% for most businesses. Any ROIC above WACC means the company is creating economic value — compounding the gap between what it earns and what capital costs.
Read the screener with one important guardrail: ROIC can vary sharply by industry. Software and payment networks routinely post 30–60% ROIC because they require almost no incremental invested capital to grow. Energy and materials companies often sit in the 8–15% range because they must reinvest heavily just to maintain existing capacity. Use the sector filter to compare ROIC within a peer group rather than across very different industries. Then check the consistency of the figure over three to five years — one great year can come from a one-time gain, but sustained high ROIC reflects a genuine structural advantage. For a deeper explanation, read the full ROIC guide.
ROIC vs. ROE and ROA
Return on equity (ROE) measures profit against the equity slice of the balance sheet only. Return on assets (ROA) measures profit against all assets the company controls. Return on invested capital (ROIC) sits between them: it measures profit against total invested capital — debt plus equity — which is the cleanest measure of how effectively management uses the resources entrusted to it. When a company carries significant debt, ROE appears far higher than ROIC because the equity base is thin. A business with 35% ROE and 12% ROIC is leaning heavily on leverage; one where both ROE and ROIC sit in the high teens has a fundamentally efficient business model. ROIC is the more honest number.
The ROIC–WACC Spread: Value Creation in One Line
The gap between a company's ROIC and its weighted average cost of capital (WACC) — called the value spread — determines whether growth creates or destroys shareholder value. A company earning 20% ROIC on a 9% WACC creates 11 percentage points of economic profit per dollar invested. The more it grows, the more value it creates. Conversely, a company earning 7% ROIC on a 9% WACC destroys value with every dollar it reinvests — growth makes it worse, not better. This is the core reason why high-ROIC businesses deserve premium valuations: they can grow and still create value, while low-ROIC businesses cannot. The screener's Elite and Strong tiers represent the businesses most likely to sit in the value-creating half of this equation.
Frequently asked questions
What ROIC percentage is considered elite?
Above 20% is the threshold for the 'Elite Compounder' label in this screener — it signals a business generating more than $0.20 of operating profit per dollar of total invested capital. 15–20% is Strong, 8–15% is Average (near or above typical WACC), and below 8% is Weak, suggesting the business may be destroying shareholder value on a risk-adjusted basis.
Which companies typically have the highest ROIC?
Asset-light businesses dominate the top of any ROIC screener: software platforms, payment networks (Visa, Mastercard), consumer brand franchises, and specialty medical devices. These companies scale revenue with minimal incremental capital investment. Technology names like Microsoft and Nvidia, consumer staples like Costco, and financial networks consistently post ROIC above 20% because their competitive moats let them earn far above their cost of capital.
Is high ROIC always a good sign?
Usually, but context matters. A startup may post high ROIC on a tiny capital base before it needs to reinvest at scale. A company may post inflated ROIC in a single year due to a one-time asset sale or accounting adjustment. And some businesses post high ROIC but cannot reinvest much — their moat is real but the market is too small to absorb more capital at the same rate. The best quality signal is a company that sustains high ROIC while also growing its invested capital base.
How does this screener calculate invested capital?
This screener defines invested capital as shareholders' equity plus long-term debt, sourced from Yahoo Finance's most recent balance sheet. This approximation captures the total capital stakeholders have put into the business. More precise calculations also add operating lease liabilities and deduct excess cash, but the equity-plus-debt approach gives a reliable first-pass measure for screening purposes.
Can ROIC be negative?
Yes. A negative ROIC means the company posted a net operating loss — it destroyed more value than it created with the capital invested. Negative ROIC companies sit below the 'Weak' tier threshold and are often early-stage businesses reinvesting ahead of profitability, or mature businesses in structural decline. The screener shows these as negative percentages so you can spot them at a glance.
How do I find the full analysis for a stock?
Click any ticker in the screener to open the Basis Report stock intelligence page. From there you can run a full DCF valuation, check earnings quality scores, view analyst consensus, see insider activity, and generate a complete research report. The ROIC screener surfaces the quality signal; the stock page gives you the depth to make a decision.