🧮 HCIIP ROIC Calculation
Understanding ROIC
Return on Invested Capital (ROIC) measures how efficiently a company uses its capital (both debt and equity) to generate profits. For HCIIP, the current ROIC is 103.64%.
Why ROIC is the Best Quality Metric
Charlie Munger famously said: "Over the long term, it's hard for a stock to earn a much better return than the business which underlies it earns." ROIC is superior to other return metrics because it measures returns on ALL capital employed — both debt and equity. Companies with consistently high ROIC often have durable competitive advantages (moats).
This is not just investing folklore. In Zyberno's survivorship-free audit of 16 fundamental metrics on the complete S&P 500 (2010–2024), ROIC was the single most predictive screen of them all — the widest return spread of any metric tested, stable across both halves of the period — and it out-predicted ROE, the most popular quality metric, roughly seventeen-to-one on identical firms.
ROIC Benchmarks
Excellent: >20%
Indicates a potential economic moat. The company generates exceptional returns on capital, suggesting strong competitive advantages.
Good: 12-20%
Above-average capital efficiency. The company creates value for shareholders by earning returns well above its cost of capital.
Average: 8-12%
Typical for most companies. Returns roughly match the weighted average cost of capital (WACC) for many businesses.
Poor: <8%
Below cost of capital for many companies. May indicate the company is destroying value through poor capital allocation.
ROIC vs ROE vs ROA
ROE: 28.80% →
Return on Equity only measures returns on shareholder equity. Can be inflated by high leverage. In Zyberno's 16-screen audit, ROIC out-predicted ROE roughly seventeen-to-one on identical firms.
ROA: 12.25%
Return on Assets measures returns on total assets. Useful but doesn't distinguish between debt and equity financing.
Owner Earnings: $429.0M →
Buffett's preferred earnings metric. ROIC tells you how efficiently capital is used; Owner Earnings shows the actual cash generated.
Free Cash Flow: $429.0M →
Actual cash after capex. High ROIC companies typically generate strong free cash flow relative to their invested capital.
What to Look For
- Consistency: Stable or improving ROIC over multiple years
- Above WACC: ROIC should exceed the company's cost of capital (typically 8-10%)
- Industry comparison: Compare to peers — above-average ROIC often signals a moat
- Capital allocation: High ROIC + good reinvestment opportunities = compounding machine
📊 Full HCIIP Stock Report →
Intrinsic value, margin of safety, DCF valuation, and 250+ metrics.
📈 HCIIP ROE →
Compare ROIC to Return on Equity and understand the impact of leverage on returns.
💹 HCIIP P/E Ratio →
Analyze valuation relative to earnings — how the market prices HCIIP's profitability.
👤 HCIIP Owner Earnings →
Warren Buffett's preferred measure of true economic earnings available to owners.
💵 HCIIP Free Cash Flow →
See actual cash generation after capital expenditures.
💰 HCIIP Net Income →
See the bottom-line profit that drives ROE calculations.
Summary: HCIIP Capital Efficiency
HCI Group, Inc. (HCIIP) ROIC is 103.64% — displayed for reference. Zyberno does not classify ROIC for financial sector companies because banks and insurers use debt as the raw material of their business, making invested capital structurally inseparable from operations. Zyberno's primary capital efficiency measure for this sector is ROE (28.80%). Combined with an ROE of 28.80% and ROA of 12.25%, Zyberno uses ROIC as its primary measure of capital quality because it accounts for both debt and equity and is harder to inflate with leverage. For complete financial analysis, view the full HCIIP stock report on Zyberno.
Frequently Asked Questions
What is HCIIP's current ROIC?
HCI Group, Inc.'s Return on Invested Capital (ROIC) is 103.64%. ROIC measures how efficiently the company generates returns on both debt and equity capital.
Is HCIIP's ROIC good?
HCI Group, Inc. (HCIIP) ROIC is 103.64% — displayed for reference. Zyberno does not classify ROIC for financial sector companies because banks and insurers use debt as the raw material of their business, making invested capital structurally inseparable from operations. Zyberno's primary capital efficiency measure for this sector is ROE (28.80%).
What is the difference between ROIC and ROE?
ROIC measures returns on ALL capital (debt + equity), while ROE only measures returns on shareholder equity. HCIIP's ROIC is 103.64% vs ROE of 28.80%. ROE can be artificially inflated by high debt levels, making ROIC a more reliable quality metric.
Why do Buffett and Munger focus on ROIC?
Warren Buffett and Charlie Munger focus on ROIC because it measures the true efficiency of capital allocation. High ROIC companies can reinvest profits at attractive rates, creating compounding wealth over time.
📊 Full HCIIP Stock Report →
See HCIIP's intrinsic value, margin of safety, DCF valuation, and complete financial analysis with 250+ metrics.
📈 HCIIP ROE →
Compare to Return on Equity and understand the impact of leverage on returns.
💹 HCIIP P/E Ratio →
Analyze the price-to-earnings ratio and earnings yield as a valuation metric.
🎯 HCIIP Earnings Surprise (SUE) →
See whether HCIIP is beating or missing its own earnings trend — Standardized Unexpected Earnings and post-earnings drift.
👤 HCIIP Owner Earnings →
Warren Buffett's preferred measure of true economic earnings available to owners.
💰 HCIIP Net Income →
See the bottom-line profit that drives return calculations.
📊 HCIIP EPS →
Earnings per share — net income on a per-share basis.