Up to date on October fifteenth, 2025 by Bob Ciura
Return on invested capital, or ROIC, is a helpful monetary ratio that buyers can add to their analysis course of.
Understanding ROIC and utilizing it to display for top ROIC shares is an efficient solution to deal with the highest-quality companies.
With this in thoughts, we ran a inventory display to deal with the very best ROIC shares within the S&P 500.
You possibly can obtain a free copy of the highest 100 shares with the very best ROIC (together with vital monetary metrics like dividend yields and price-to-earnings ratio) by clicking on the hyperlink under:
Utilizing ROIC permits buyers to filter out the highest-quality companies which can be successfully producing a return on capital.
This text will clarify ROIC and its usefulness for buyers. It should additionally checklist the highest 10 highest ROIC shares proper now.
Desk Of Contents
You should use the hyperlinks under to immediately bounce to a person part of the article:
What Is ROIC?
Put merely, return on invested capital (ROIC) is a monetary ratio that exhibits an organization’s capability to allocate capital. The frequent method to calculate ROIC is to divide an organization’s after-tax internet working revenue, by the sum of its debt and fairness capital.
As soon as the ROIC is calculated, it’s evaluated towards an organization’s weighted common value of capital, generally known as WACC.
If an organization’s WACC will not be instantly accessible, it may be calculated by taking a weighted common of the price of an organization’s debt and fairness.
Price of debt is calculated by averaging the yield to maturity for a corporation’s excellent debt. That is pretty simple to search out, as a publicly-traded firm should report its debt obligations.
Price of fairness is often calculated through the use of the capital asset pricing mannequin, in any other case referred to as CAPM.
As soon as the WACC is calculated, it may be in contrast with the ROIC. Buyers need to see an organization’s ROIC exceed its WACC.
This means the underlying enterprise is efficiently investing its capital to generate a worthwhile return. On this method, the corporate is creating financial worth.
Typically, shares producing the very best ROIC are doing the most effective job of allocating their buyers’ capital. With this in thoughts, the next part ranks the ten shares with the very best ROIC.
The High 10 Highest ROIC Shares
The next 10 shares have the very best ROIC within the Certain Evaluation Analysis Database. Shares are listed by ROIC, from lowest to highest.
Excessive ROIC Inventory #10: Yum Manufacturers Inc. (YUM)
Return on invested capital: 44.6%
Yum Manufacturers owns the KFC, Pizza Hut, Taco Bell, and The Behavior Eating places chains. It’s current in additional than 155 nations and has greater than 59,000 eating places, 60% of that are situated overseas.
KFC generates about half of the overall income and working revenue of the corporate.
In early August, Yum Manufacturers reported (8/5/25) outcomes for Q2-2025. It grew its gross sales 4% over the prior 12 months’s quarter thanks to six% progress at Taco Bell and 5% progress at KFC. Retailer rely grew 3%. Digital gross sales surpassed ~$9 billion and comprised a file 57% of whole gross sales.
Earnings-per-share grew 7%, from $1.35 to $1.44, although they missed the analysts’ consensus by $0.02. Yum Manufacturers retains opening new shops at a quick tempo.
Administration reiterated its steerage for 8% progress of working revenue in 2025. Accordingly, we nonetheless anticipate earnings-per-share of $5.92 this 12 months.
Click on right here to obtain our most up-to-date Certain Evaluation report on YUM (preview of web page 1 of three proven under):
Excessive ROIC Inventory #9: TJX Corporations (TJX)
Return on invested capital: 46.9%
TJX Corporations is a number one off-price retailer of attire and residential fashions within the U.S. and worldwide. As of November 2, 2024, the corporate operated 5,057 shops in 9 nations.
These embody 1,331 T.J. Maxx (26% of whole), 1,219 Marshalls (24%) and 941 HomeGoods (19%) in america. TJX additionally operates e-commerce websites. In a traditional 12 months, the corporate generates ~$50 billion in annual income and ~$4 billion in internet revenue.
On 8/20/25, TJX launched its fiscal Q2 2026 outcomes for the interval ending 8/3/25. For the quarter, internet gross sales rose 6.9% 12 months over 12 months to $14.4 billion.
Web gross sales progress occurred throughout all its divisions – Marmaxx (U.S.) +5% 12 months over 12 months, HomeGoods (U.S.) +9%, TJX Canada +11%, and TJX Worldwide +13%. Consolidated comparable retailer gross sales rose 4%.
It witnessed comparable retailer gross sales progress throughout all its divisions with the strongest of 9% at TJX Canada, adopted by 4% at TJX Worldwide (Europe & Australia) and HomeGoods (U.S.) , and three% at Marmaxx (U.S.).
Web revenue got here in at $1.2 billion, up 13% 12 months over 12 months. Diluted earnings-per-share (“EPS”) rose 15% to $1.10.
Click on right here to obtain our most up-to-date Certain Evaluation report on TJX (preview of web page 1 of three proven under):
Excessive ROIC Inventory #8: Altria Group (MO)
Return on invested capital: 47.5%
Altria is a tobacco inventory that sells cigarettes, chewing tobacco, cigars, e-cigarettes, and extra underneath quite a lot of manufacturers, together with Marlboro, Skoal, and Copenhagen, amongst others.
This can be a interval of transition for Altria. The decline within the U.S. smoking charge continues. In response, Altria has invested closely in new merchandise that attraction to altering client preferences, because the smoke-free class continues to develop.
Supply: Investor Presentation
The corporate additionally has a 35% funding stake in e-cigarette maker JUUL, and a forty five% stake within the Canadian hashish producer Cronos Group (CRON).
On July 30, 2025, Altria Group, Inc. reported its monetary outcomes for the second quarter of 2025. The corporate posted adjusted earnings per share of $1.44, surpassing the analyst estimate of $1.38 and rising 8.3% 12 months over 12 months.
Income got here in at $6.1 billion, above the consensus estimate of $5.2 billion however down 1.7% in comparison with the identical interval final 12 months. Web revenues had been $6,102 million, with gross revenue at $3,900 million and working revenue at $3,200 million.
Web earnings stood at $2.4 billion, down from $3.8 billion in Q2 2024, impacted by a big goodwill impairment within the e-vapor phase.
Home cigarette volumes declined 10.2%, however the smokeable merchandise phase delivered stable adjusted working corporations revenue progress behind Marlboro’s power.
Click on right here to obtain our most up-to-date Certain Evaluation report on Altria (preview of web page 1 of three proven under):
Excessive ROIC Inventory #7: Starbucks Company (SBUX)
Return on invested capital: 51.2%
Starbucks started with a single retailer in Seattle’s Pike Place Market in 1971 and now has greater than 39,000 shops worldwide. Almost half of the shops are within the U.S. and almost 20% of the shops are in China.
The corporate operates underneath the Starbucks model, but in addition holds the Teavana, Evolution Contemporary, and Ethos Water manufacturers in its portfolio. The corporate generated $36 billion in annual income in fiscal 2024.
In late July, Starbucks reported (7/29/25) outcomes for the third quarter of fiscal 2025 (Starbucks’ fiscal 12 months ends the Sunday closest to September thirtieth).
Comparable retailer gross sales declined -2% resulting from a -2% decline within the variety of transactions. Identical-store gross sales in China grew 2%, after many adverse quarters in a row.
Earnings-per-share decreased 46% resulting from hefty investments within the enterprise, from $0.93 in final 12 months’s quarter to $0.50, lacking the analysts’ consensus by $0.15. It was a disappointing quarter, because it signaled that the turnaround is more likely to take longer to materialize.
Nonetheless, administration said that it’s doing its finest to enhance the Starbucks expertise and stays assured in a turnaround. As a result of current change within the CEO place, administration has not supplied any steerage for 2025.
Click on right here to obtain our most up-to-date Certain Evaluation report on SBUX (preview of web page 1 of three proven under):
Excessive ROIC Inventory #6: Mastercard Inc. (MA)
Return on invested capital: 52.9%
MasterCard is a world chief in digital funds. The corporate companions with 25,000 monetary establishments all over the world to supply an digital cost community. MasterCard has greater than 3.1 billion credit score and debit playing cards in use.
On July thirty first, 2025, MasterCard introduced second quarter outcomes for the interval ending June thirtieth, 2025. For the quarter, income grew 15.7% to $8.1 billion, which was $120 million greater than anticipated. Adjusted earnings-per-share of $4.15 in contrast favorably to $3.59 within the prior 12 months and was $0.13 forward of estimates.
On a neighborhood foreign money foundation, gross greenback volumes for the quarter grew 9% worldwide to $2.63 trillion throughout the quarter, with the U.S. up 6% and the remainder of the world rising 10%. Cross border volumes remained sturdy, bettering 17% from the prior 12 months.
Switched transactions had been up 10% to 43.5 billion and playing cards in use grew 6% to three.58 billion. Bills elevated 15% to $3.4 billion. The adjusted working margin expanded 50 foundation factors to 59.9%.
The corporate repurchased 4.2 million shares at a median worth of ~$547 throughout the quarter. Quarter-to-date by July twenty eighth, 2025, MasterCard repurchased an extra 1.8 million shares at a median worth of ~$556.
Click on right here to obtain our most up-to-date Certain Evaluation report on Mastercard (preview of web page 1 of three proven under):
Excessive ROIC Inventory #5: Apple, Inc. (AAPL)
Return on invested capital: 54.1%
Apple designs, manufactures and sells merchandise corresponding to iPhones, iPads, Mac, Apple Watch and Apple TV. Apple additionally has a providers enterprise that sells music, apps, and subscriptions.
On July thirty first, 2025, Apple reported monetary outcomes for the third quarter of fiscal 12 months 2025. Complete gross sales grew 10% over the prior 12 months’s quarter, to $94.0 billion, due to sustained progress in iPhone, Mac and Companies and each geographic area. Earnings-per-share grew 12%, from $1.40 to $1.57, and exceeded the analysts’ consensus by $0.14.
Notably, Apple has missed the analysts’ estimates solely as soon as within the final 27 quarters. Apple posted file third-quarter gross sales and earnings-per-share.
Going ahead, Apple’s earnings progress can be pushed by a number of components. One in every of these is the continuing cycle of iPhone releases, which creates lumpy outcomes. In the long term, Apple ought to be capable of develop its iPhone gross sales, albeit in an irregular style.
Furthermore, in rising nations the place customers have rising disposable incomes, Apple ought to be capable of improve the variety of smartphones it’s promoting within the coming years.
As well as, Apple’s Companies unit, which consists of iTunes, Apple Music, the App Retailer, iCloud, Apple Pay, and so forth., has recorded a big income progress charge in recent times. Companies revenues develop at a quick charge and produce high-margin, recurring revenues.
Click on right here to obtain our most up-to-date Certain Evaluation report on AAPL (preview of web page 1 of three proven under):
Excessive ROIC Inventory #4: Domino’s Pizza Inc. (DPZ)
Return on invested capital: 59.3%
Domino’s Pizza was based in 1960. It’s the largest pizza firm on the earth primarily based on international retail gross sales. The corporate operates greater than 21,000 shops in additional than 90 nations.
It generates almost half of its gross sales within the U.S. whereas 99% of its shops worldwide are owned by impartial franchisees.
In late July, Domino’s reported (7/21/25) monetary outcomes for the second quarter of fiscal 2025. Its U.S. same-store gross sales grew 3.4% and its worldwide same-store gross sales rose 2.4% over the prior 12 months’s quarter.
Earnings-per-share dipped -5%, from $4.03 to $3.81, largely resulting from a re-measurement of the funding of the corporate in DPC Sprint and a better revenue tax charge. Earnings-per-share missed the analysts’ consensus by $0.14.
Domino’s has overwhelmed the analysts’ estimates in 9 of the final 11 quarters. It nonetheless expects to develop its international retail gross sales and its working revenue by 7% and eight% per 12 months, respectively, till the top of 2028.
Click on right here to obtain our most up-to-date Certain Evaluation report on DPZ (preview of web page 1 of three proven under):
Excessive ROIC Inventory #3: McKesson Company (MCK)
Return on invested capital: 64.3%
McKesson Company traces its lineage to 1833 when its founders started to supply wholesale chemical substances and prescribed drugs in New York Metropolis.
Within the 190 years since, McKesson has grown right into a powerhouse within the pharmaceutical and medical distribution trade and at this time, generates greater than $300 billion in annual income.
McKesson posted first quarter earnings on August sixth, 2025, and outcomes had been higher than anticipated on each the highest and backside strains.
Adjusted earnings-per-share got here to $8.26, which was 11 cents forward of consensus. Income was up 23.3% year-over-year to $97.8 billion, beating estimates by $1.46 billion.
US Pharma income was $90 billion, up 25% year-over-year on GLP-1 revenues at $12.1 billion. Phase working revenue was $950 million, up 17%.
Prescription Know-how Options income rose 16% to $1.4 billion, as working revenue rose 21% to $269 million. Medical-Surgical Options income was $2.7 billion, up 2%, whereas working revenue was $244 million; that was a 22% improve.
Gross revenue was $3.3 billion, up 7%, which was pushed by specialty distribution and supplier progress. Working bills had been off 1% to $1.9 billion, serving to increase working revenue by 9% to $1.4 billion.
Click on right here to obtain our most up-to-date Certain Evaluation report on MCK (preview of web page 1 of three proven under):
Excessive ROIC Inventory #2: Otis Worldwide (OTIS)
Return on invested capital: 69.0%
Otis Worldwide Corp. debuted as an impartial, publicly traded firm on April third, 2020, after being spun off from United Applied sciences (beforehand UTX, now Raytheon Applied sciences, RTX).
Right now Otis is the main firm for elevator and escalator manufacturing, set up, and repair.
On July twenty third, 2025, Otis reported monetary outcomes for the second quarter of fiscal 2025. Gross sales remained flat and natural gross sales grew 4%. Adjusted earnings-per-share edged down -1%, from $1.06 to $1.05, however exceeded the analysts’ consensus by $0.02. Otis has missed the analysts’ estimates solely twice within the final 21 quarters.
The backlog grew 19% which bodes properly for Otis within the upcoming quarters.
On account of weak gross sales of recent gear, particularly in China, Otis lowered its steerage for progress of natural gross sales in 2025 from 2%-4% to 1% however reiterated its steerage for adjusted earnings-per-share of $4.00-$4.10. On the mid-point, this steerage implies 6% progress over the prior 12 months.
Click on right here to obtain our most up-to-date Certain Evaluation report on OTIS (preview of web page 1 of three proven under):
Excessive ROIC Inventory #1: Cardinal Well being (CAH)
Return on invested capital: 71.6%
Cardinal Well being is without doubt one of the “Large 3” drug distribution corporations together with McKesson (MKC) and AmerisourceBergen (ABC). Cardinal Well being serves over 24,000 United States pharmacies and greater than 85% of the nation’s hospitals.
Over 90% of the corporate’s income comes from the Pharma & Specialty areas.
Supply: Investor Presentation
On August twelfth, 2025, Cardinal Well being introduced outcomes for the fourth quarter and financial 12 months 2025 for the interval ending June thirtieth, 2025. For the quarter, income grew 0.5% to $60.16 billion, however this was $760 million under estimates.
On an adjusted foundation, earnings of $501 million, or $2.08 per share, in contrast favorably to earnings of $450 million, or $1.84 per share, within the prior 12 months. Adjusted EPS was $0.05 greater than anticipated. For the fiscal 12 months, income declined 2% to $226.8 billion whereas adjusted earnings-per-share of $8.24 in comparison with $7.53 within the prior 12 months.
For the quarter, income for the Pharmaceutical and Specialty Options phase was primarily unchanged at $55.4 billion, however phase revenue elevated 11% to $535 million. An expiring buyer contract impacted income.
Excluding this, income was greater by 22% for the interval as this phase continues to profit from greater gross sales to present prospects and ongoing power in model and specialty prescribed drugs.
Income for the World Medical Merchandise and Distribution phase was up 3% to $3.2 billion.
Click on right here to obtain our most up-to-date Certain Evaluation report on CAH (preview of web page 1 of three proven under):
Ultimate Ideas
There are various alternative ways for buyers to worth shares. One widespread valuation technique is to calculate an organization’s return on invested capital.
By doing so, buyers can get a greater gauge of corporations that do the most effective job of investing their capital.
ROIC is in no way the one metric that buyers ought to use to purchase shares. There are various different worthwhile valuation strategies that buyers ought to think about.
That mentioned, the highest 10 ROIC shares on this checklist have confirmed the flexibility to create financial worth for shareholders.
Additional Studying
In case you are interested by discovering high-quality dividend progress shares appropriate for long-term funding, the next Certain Dividend databases can be helpful:
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