2025 High ROIC Stocks List

Up to date on June twelfth, 2025 by Bob Ciura

Return on invested capital, or ROIC, is a priceless monetary ratio that traders can add to their analysis course of.

Understanding ROIC and utilizing it to display for prime ROIC shares is an effective method to deal with the highest-quality companies.

With this in thoughts, we ran a inventory display to deal with the best ROIC shares within the S&P 500.

You’ll be able to obtain a free copy of the highest 100 shares with the best ROIC (together with vital monetary metrics like dividend yields and price-to-earnings ratio) by clicking on the hyperlink under:

Utilizing ROIC permits traders 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 traders. It’s going to additionally checklist the highest 10 highest ROIC shares proper now.

Desk Of Contents

You should utilize the hyperlinks under to immediately soar 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 means to allocate capital. The frequent components 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 price of capital, generally known as WACC.

If an organization’s WACC shouldn’t be instantly obtainable, 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 an organization’s excellent debt. That is pretty simple to seek out, as a publicly-traded firm should report its debt obligations.

Price of fairness is usually calculated by utilizing the capital asset pricing mannequin, in any other case often called CAPM.

As soon as the WACC is calculated, it may be in contrast with the ROIC. Buyers wish 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 best ROIC are doing the most effective job of allocating their traders’ capital. With this in thoughts, the next part ranks the ten shares with the best ROIC.

The High 10 Highest ROIC Shares

The next 10 shares have the best ROIC within the Positive 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 international locations and has greater than 59,000 eating places, 60% of that are situated overseas. KFC generates about half of the whole income and working revenue of the corporate.

In late April, Yum Manufacturers reported (4/30/25) outcomes for Q1-2025. It grew its gross sales 5% over the prior yr’s quarter because of 11% progress at Taco Bell and 5% progress at KFC. Retailer depend grew 3%.

Digital gross sales had been ~$9 billion and comprised 55% of whole gross sales. Earnings-per-share grew 13%, from $1.15 to $1.30, and exceeded 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 earnings in 2025. Accordingly, we nonetheless count on earnings-per-share of $5.92 this yr.

Click on right here to obtain our most up-to-date Positive 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 international locations.

These embody 1,331 T.J. Maxx (26% of whole), 1,219 Marshalls (24%) and 941 HomeGoods (19%) in the US. TJX additionally operates e-commerce websites. In a standard yr, the corporate generates ~$50 billion in annual income and ~$4 billion in internet revenue.

On 5/21/25, TJX launched its fiscal Q1 2026 outcomes for the interval ending 5/3/25. For the quarter, internet gross sales rose 5% yr over yr to $13.1 billion. Internet gross sales progress occurred throughout all its divisions – Marmaxx (U.S.) +4% yr over yr, HomeGoods (U.S.) +8%, TJX Canada +3%, and TJX Worldwide +8%. Consolidated comparable retailer gross sales rose 3%, pushed by a rise in buyer transactions.

It witnessed comparable retailer gross sales progress throughout all its divisions with the strongest of 5% at TJX Canada and TJX Worldwide (Europe & Australia), adopted by 4% at at HomeGoods (U.S.), and a couple of% at Marmaxx (U.S.).

Internet earnings got here in at $1.0 billion, down 3.2% yr over yr. Diluted earnings-per-share (“EPS”) fell 1.1% to $0.92, helped by a 1.2% discount in its share depend. The corporate repurchased $613 million price of inventory at a median worth of ~$120.20 per share.

Click on right here to obtain our most up-to-date Positive 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 below a wide range of manufacturers, together with Marlboro, Skoal, and Copenhagen, amongst others.

With a present dividend yield of almost 8%, Altria is a perfect retirement funding inventory.

It is a interval of transition for Altria. The decline within the U.S. smoking price 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 April 29, 2025, Altria Group reported its monetary outcomes for the primary quarter of 2025. The corporate posted internet revenues of $5.26 billion, a 5.7% decline from the identical interval in 2024, attributed primarily to decrease cigarette cargo volumes, which fell by 13.7%.

Regardless of this, adjusted diluted earnings per share (EPS) rose by 6% year-over-year to $1.23, surpassing analyst expectations of $1.19.

Within the smokeable merchandise phase, internet revenues declined by 5.8%, however adjusted working firms earnings elevated by 1.2%, pushed by greater pricing and decrease manufacturing prices.

The oral tobacco merchandise phase noticed a 0.5% improve in internet revenues, supported by an 18% rise in on! nicotine pouch shipments.

Click on right here to obtain our most up-to-date Positive 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. Practically half of the shops are within the U.S. and almost 20% of the shops are in China.

The corporate operates below 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 April, Starbucks reported (4/29/25) monetary outcomes for the second quarter of fiscal 2025. Comparable retailer gross sales declined -1% resulting from a -2% decline within the variety of transactions.

Identical-store gross sales in China had been flat, after many destructive quarters in a row. Adjusted earnings-per-share decreased -40%, from $0.68 within the prior yr’s quarter to $0.41, and missed the analysts’ consensus by $0.07.

It was a disappointing quarter, because it signaled that the restoration is more likely to take longer to materialize.

Click on right here to obtain our most up-to-date Positive 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 around the globe to supply an digital cost community. MasterCard has greater than 3.1 billion credit score and debit playing cards in use.

On Might 1st, 2025, MasterCard reported first quarter outcomes for the interval ending March thirty first, 2025. For the quarter, income grew 14.2% to $7.25 billion, which was $130 million higher than anticipated. Adjusted earnings-per-share of $3.73 in contrast favorably to $3.31 within the prior yr and was $0.17 above estimates.

On an area forex foundation, gross greenback volumes for the quarter grew 9% worldwide to $2.42 trillion through the quarter, with the U.S. bettering 7% and the remainder of the world greater by 10%. Cross border volumes remained robust, rising 15% from the prior yr and 20% from This fall 2024.

Click on right here to obtain our most up-to-date Positive 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 comparable to iPhones, iPads, Mac, Apple Watch and Apple TV. Apple additionally has a companies enterprise that sells music, apps, and subscriptions.

On Might 1st, 2025, Apple reported monetary outcomes for the second quarter of fiscal yr 2025 (Apple’s fiscal yr ends the final Saturday in September). Complete gross sales grew 5% over the prior yr’s quarter, to $95.4 billion, because of sustained progress in iPhone, iPad and Wearables in addition to Providers.

Earnings-per-share grew 8%, from $1.53 to $1.65, and exceeded the analysts’ consensus by $0.02. Notably, Apple has missed the analysts’ estimates solely as soon as within the final 26 quarters.

Going ahead, Apple’s earnings progress shall be pushed by a number of elements. One in all these is the continued cycle of iPhone releases, which creates lumpy outcomes. In the long term, Apple ought to be capable to develop its iPhone gross sales, albeit in an irregular vogue.

Furthermore, in rising international locations the place customers have rising disposable incomes, Apple ought to be capable to improve the variety of smartphones it’s promoting within the coming years. As well as, Apple’s Providers unit, which consists of iTunes, Apple Music, the App Retailer, iCloud, Apple Pay, and so on., has recorded a major income progress price in recent times. Providers revenues develop at a quick price and produce high-margin, recurring revenues.

Click on right here to obtain our most up-to-date Positive 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 planet based mostly on world retail gross sales. The corporate operates greater than 21,000 shops in additional than 90 international locations.

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 April, Domino’s reported (4/28/25) monetary outcomes for the primary quarter of fiscal 2025. Its U.S. same-store gross sales dipped -0.5% however its worldwide same-store gross sales rose 3.7% over the prior yr’s quarter. Earnings-per-share grew 21%, from $3.58 to $4.33, principally because of a re-measurement of the funding of the corporate in DPC Sprint and a decrease share depend.

Earnings-per-share exceeded the analysts’ consensus by $0.26. Domino’s has crushed the analysts’ estimates in 9 of the final 10 quarters. It nonetheless expects to develop its world retail gross sales and its working earnings by 7% and eight% per yr, respectively, till the top of 2028.

Click on right here to obtain our most up-to-date Positive 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 prescription drugs in New York Metropolis.

Within the 190 years since, McKesson has grown right into a powerhouse within the pharmaceutical and medical distribution business and right now, generates greater than $300 billion in annual income.

McKesson posted fourth quarter and full-year earnings on Might eighth, 2025, and outcomes had been considerably blended. Adjusted earnings-per-share got here to $10.12, which was 29 cents forward of estimates. Income was up 19% year-over-year to $90.8 billion, lacking estimates by $3.4 billion.

The massive information was that the corporate introduced its intention to separate its medical-surgical options division into an impartial firm.

Administration famous energy within the core pharma distribution enterprise, enlargement of oncology, and continued progress of biopharma options.

Price optimization initiatives delivered $100 million in price financial savings through the yr, serving to enhance margins together with greater income. Free money circulate was $7.5 billion through the quarter.

Click on right here to obtain our most up-to-date Positive 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).

At this time Otis is the main firm for elevator and escalator manufacturing, set up, and repair.

On April twenty third, 2025, Otis reported monetary outcomes for the primary quarter of fiscal 2025. Gross sales and natural gross sales grew 1% and 4%, respectively, whereas adjusted earnings-per-share grew 5%, from $0.88 to $0.92, and exceeded the analysts’ consensus by $0.01.

Otis has missed the analysts’ estimates solely twice within the final 20 quarters. Backlog grew 13%. This bodes effectively for the efficiency of Otis within the upcoming quarters.

Because of sustained enterprise momentum, Otis reiterated its optimistic steerage for 2025. It expects 2%-4% progress of natural gross sales and adjusted earnings-per-share of $4.00-$4.10. On the mid-point, this steerage implies 6% progress over the prior yr.

Click on right here to obtain our most up-to-date Positive 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 likely one of the “Massive 3” drug distribution firms 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 Might 1st, 2025, Cardinal Well being reported outcomes for the third quarter of fiscal yr 2025 for the interval ending March thirty first, 2025. For the quarter, income was flat at $54.9 billion, however this was $410 million under estimates.

On an adjusted foundation, earnings of $568 million, or $2.35 per share, in contrast favorably to earnings of $511 million, or $2.09 per share, within the prior yr. Adjusted EPS was $0.20 higher than anticipated.

For the quarter, income for the Pharmaceutical and Specialty Options phase was primarily unchanged at $50.4 billion, however phase revenue grew 14% to $662 million.

Click on right here to obtain our most up-to-date Positive Evaluation report on CAH (preview of web page 1 of three proven under):

Closing Ideas

There are numerous other ways for traders to worth shares. One fashionable valuation methodology is to calculate an organization’s return on invested capital.

By doing so, traders can get a greater gauge of firms that do the most effective job of investing their capital.

ROIC is on no account the one metric that traders ought to use to purchase shares. There are numerous different worthwhile valuation strategies that traders ought to contemplate.

That stated, the highest 10 ROIC shares on this checklist have confirmed the power to create financial worth for shareholders.

Additional Studying

If you’re all for discovering high-quality dividend progress shares appropriate for long-term funding, the next Positive Dividend databases shall be helpful: