ROIC Screener | Awesome Stocks With High ROIC

Companies With a High Return on Invested Capital

A high return on invested capital (ROIC) means investors are realizing strong returns on their investment in a company.

The higher the ROIC, the better a company is investing it’s capital to generate future growth and shareholder value.

For example, let’s say a management team had $1 million dollars to invest, and they could either invest in a new product line, or enhancements to their existing product line. After thinking it over, the Company invests the $1 million in a new product line. One year later, the Company looks back at what they have earned on the new product line, only to find out that it’s a measly $100,000.

As it turns out, if they had invested in the enhancements to their existing product line, they would have earned $500,000 over the same period of time. What does this mean?

Well, there could be more factors at play, but based on this example, the Company’s management team made the wrong decision.

As an investor, you want your management teams making the right decisions and investing in the areas that will generate the highest returns for you as an investor.

So, what’s an easy way to find companies that are investing in the right areas of their business, and distributing that money back to investors? Find stocks with a high ROIC.

Using the DiscoverCI Stock Screener, we scan for stocks daily that have a great ROIC, and are growing operations. Our screen was built using the following criteria:

• Recent growth in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA),
• Debt to Equity Ratio Less Than 1.00, and
• Return on Invested Capital Greater than 20%.

The list is sorted by ROIC from high to low, and our analysis is updated daily.