High ROIC Stocks: Compound Wealth with Elite Capital Allocators

Refreshed Oct 10, 2026

High ROIC stocks represent businesses that generate exceptional returns on their invested capital, signaling strong competitive moats and superior management execution.

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This screen is currently exhibiting strong clustering in the Technology sector (24% of constituents).

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Ticker	Company	Price	Mkt Cap	Return 6M	D/E	ROIC
ROK	Rockwell Automation, Inc.	$434.14	$48.31B	11.3%	1.0	15.1%
MRK	Merck & Co., Inc.	$142.40	$351.69B	15.6%	1.0	22%
TXN	Texas Instruments Incorporated	$288.20	$263.2B	38%	0.9	15.8%
KLAC	KLA Corporation	$196.72	$256.97B	17.6%	0.9	44%
PBR-A	Petróleo Brasileiro S.A. - Petrobras	$22.14	$142.68B	21.4%	0.9	16.2%
PBR	Petróleo Brasileiro S.A. - Petrobras	$24.69	$159.11B	23.6%	0.9	16.2%
WMS	Advanced Drainage Systems, Inc.	$126.21	$9.67B	-14.4%	0.9	16.8%
BKE	The Buckle, Inc.	$43.31	$2.23B	-19.4%	0.9	37.6%
ADSK	Autodesk, Inc.	$233.60	$49.32B	-2.9%	0.9	37.8%
AMP	Ameriprise Financial, Inc.	$499.08	$44.87B	10.1%	0.9	31.3%
LECO	Lincoln Electric Holdings, Inc.	$258.78	$14.18B	1.7%	0.9	22.7%
ADP	Automatic Data Processing, Inc.	$270.73	$108.22B	34.8%	0.9	32.2%
VRT	Vertiv Holdings Co	$243.73	$93.83B	-13.3%	0.9	28.1%
VLTO	Veralto Corporation	$96.48	$23.71B	6.6%	0.9	25.7%
NVS	Novartis AG	$143.11	$272.01B	-7.3%	0.8	18.8%
QCOM	QUALCOMM Incorporated	$176.01	$184.81B	38%	0.8	29.1%
ROL	Rollins, Inc.	$32.26	$15.52B	-41%	0.8	25.1%
PRI	Primerica, Inc.	$275.39	$8.59B	4.3%	0.7	20.8%
RACE	Ferrari N.V.	$388.28	$68.3B	10.5%	0.7	30%
FDS	FactSet Research Systems Inc.	$286.52	$10.19B	28.5%	0.7	15.5%
LAUR	Laureate Education, Inc.	$39.20	$5.49B	10.8%	0.7	20.3%
WSM	Williams-Sonoma, Inc.	$239.00	$28.14B	27.4%	0.7	44.3%
G	Genpact Limited	$34.67	$5.88B	-6.1%	0.7	17.2%
CHKP	Check Point Software Technologies Ltd.	$134.74	$13.76B	-7.6%	0.7	23.2%
HUBB	Hubbell Incorporated	$475.40	$25.12B	-9.8%	0.7	17.1%
NVO	Novo Nordisk A/S	$38.18	$169.54B	1.5%	0.7	36.2%
ERO	Ero Copper Corp.	$35.98	$3.75B	18.8%	0.7	15.5%
IDXX	IDEXX Laboratories, Inc.	$513.14	$40.48B	-13.3%	0.7	42.5%
SCCO	Southern Copper Corporation	$198.66	$165.75B	7.4%	0.7	38.6%
CAAP	Corporacion America Airports S.A.	$24.40	$3.98B	-8.2%	0.7	16.8%

ROK

Rockwell Automation, Inc.

$434.14Price

Mkt Cap$48.31B

Return 6M11.3%

D/E1.0

ROIC15.1%

MRK

Merck & Co., Inc.

$142.40Price

Mkt Cap$351.69B

Return 6M15.6%

D/E1.0

ROIC22%

TXN

Texas Instruments Incorporated

$288.20Price

Mkt Cap$263.2B

Return 6M38%

D/E0.9

ROIC15.8%

KLAC

KLA Corporation

$196.72Price

Mkt Cap$256.97B

Return 6M17.6%

D/E0.9

ROIC44%

PBR-A

Petróleo Brasileiro S.A. - Petrobras

$22.14Price

Mkt Cap$142.68B

Return 6M21.4%

D/E0.9

ROIC16.2%

PBR

Petróleo Brasileiro S.A. - Petrobras

$24.69Price

Mkt Cap$159.11B

Return 6M23.6%

D/E0.9

ROIC16.2%

WMS

Advanced Drainage Systems, Inc.

$126.21Price

Mkt Cap$9.67B

Return 6M-14.4%

D/E0.9

ROIC16.8%

BKE

The Buckle, Inc.

$43.31Price

Mkt Cap$2.23B

Return 6M-19.4%

D/E0.9

ROIC37.6%

ADSK

Autodesk, Inc.

$233.60Price

Mkt Cap$49.32B

Return 6M-2.9%

D/E0.9

ROIC37.8%

AMP

Ameriprise Financial, Inc.

$499.08Price

Mkt Cap$44.87B

Return 6M10.1%

D/E0.9

ROIC31.3%

LECO

Lincoln Electric Holdings, Inc.

$258.78Price

Mkt Cap$14.18B

Return 6M1.7%

D/E0.9

ROIC22.7%

ADP

Automatic Data Processing, Inc.

$270.73Price

Mkt Cap$108.22B

Return 6M34.8%

D/E0.9

ROIC32.2%

VRT

Vertiv Holdings Co

$243.73Price

Mkt Cap$93.83B

Return 6M-13.3%

D/E0.9

ROIC28.1%

VLTO

Veralto Corporation

$96.48Price

Mkt Cap$23.71B

Return 6M6.6%

D/E0.9

ROIC25.7%

NVS

Novartis AG

$143.11Price

Mkt Cap$272.01B

Return 6M-7.3%

D/E0.8

ROIC18.8%

QCOM

QUALCOMM Incorporated

$176.01Price

Mkt Cap$184.81B

Return 6M38%

D/E0.8

ROIC29.1%

ROL

Rollins, Inc.

$32.26Price

Mkt Cap$15.52B

Return 6M-41%

D/E0.8

ROIC25.1%

PRI

Primerica, Inc.

$275.39Price

Mkt Cap$8.59B

Return 6M4.3%

D/E0.7

ROIC20.8%

RACE

Ferrari N.V.

$388.28Price

Mkt Cap$68.3B

Return 6M10.5%

D/E0.7

ROIC30%

FDS

FactSet Research Systems Inc.

$286.52Price

Mkt Cap$10.19B

Return 6M28.5%

D/E0.7

ROIC15.5%

LAUR

Laureate Education, Inc.

$39.20Price

Mkt Cap$5.49B

Return 6M10.8%

D/E0.7

ROIC20.3%

WSM

Williams-Sonoma, Inc.

$239.00Price

Mkt Cap$28.14B

Return 6M27.4%

D/E0.7

ROIC44.3%

Genpact Limited

$34.67Price

Mkt Cap$5.88B

Return 6M-6.1%

D/E0.7

ROIC17.2%

CHKP

Check Point Software Technologies Ltd.

$134.74Price

Mkt Cap$13.76B

Return 6M-7.6%

D/E0.7

ROIC23.2%

HUBB

Hubbell Incorporated

$475.40Price

Mkt Cap$25.12B

Return 6M-9.8%

D/E0.7

ROIC17.1%

NVO

Novo Nordisk A/S

$38.18Price

Mkt Cap$169.54B

Return 6M1.5%

D/E0.7

ROIC36.2%

ERO

Ero Copper Corp.

$35.98Price

Mkt Cap$3.75B

Return 6M18.8%

D/E0.7

ROIC15.5%

IDXX

IDEXX Laboratories, Inc.

$513.14Price

Mkt Cap$40.48B

Return 6M-13.3%

D/E0.7

ROIC42.5%

SCCO

Southern Copper Corporation

$198.66Price

Mkt Cap$165.75B

Return 6M7.4%

D/E0.7

ROIC38.6%

CAAP

Corporacion America Airports S.A.

$24.40Price

Mkt Cap$3.98B

Return 6M-8.2%

D/E0.7

ROIC16.8%

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Learn more about High ROIC Stocks: Compound Wealth with Elite Capital Allocators

How We Build This List

Return on Invested Capital (ROIC) > 15%Ensures the company is highly efficient at turning capital into profitable growth.
5-Year Average ROIC > 12%Verifies that high capital efficiency is structural and sustainable, not a one-time spike.
Free Cash Flow Margin > 10%Confirms that accounting profits are backed by actual cash generation.
Debt-to-Equity Ratio < 1.0Prevents artificially inflated ROIC figures driven by excessive leverage.
Operating Margin > 15%Indicates strong pricing power and operational efficiency.

Open Screener

What Makes a Stock a High Roic Stocks constituent?

This screen identifies companies generating superior returns on invested capital (ROIC) above 20%, a hallmark of firms with durable competitive advantages. By filtering for high capital efficiency, investors can isolate compounders like Costco, which maintained an ROIC above 20% for over a decade, consistently outperforming the broader S&P 500.

ROIC

Efficiency Filter

ROIC >= 20%

MARGIN

Profitability

Net Margin >= 15%

DEBT

Solvency Filter

Debt/Equity < 0.5

Filter for Capital Efficiency

Target firms with ROIC > 20% to find businesses that reinvest profits at high rates, similar to how Apple utilized its cash pile to dominate the smartphone market in 2010.

Verify Profitability Margins

Ensure net margins exceed 15% to confirm pricing power, much like Microsoft's software-as-a-service model which sustained high margins during the 2022 tech downturn.

Assess Balance Sheet Strength

Limit Debt/Equity to < 0.5 to avoid insolvency risk, a lesson learned when GE's high debt load forced a massive dividend cut and stock price collapse in 2018.

Performance Dynamics: When Does This Strategy Outperform?

Strategy performance behaves differently based on market conditions. Let's analyze when this strategy outperforms and when it lags:

When High ROIC Leads

✓ High ROIC stocks outperformed the S&P 500 by 12% during the 2022 inflationary period as pricing power protected margins.
✓ During the 2008 financial crisis, high-quality firms with low debt and high ROIC recovered 30% faster than the broader market.
✓ In low-growth environments like 2011-2013, companies with high ROIC commanded premium valuations as investors chased scarce growth.

When High ROIC Trails

✗ During the 2020 post-COVID speculative rally, low-quality, high-debt stocks surged 50% while stable ROIC compounders lagged.
✗ In periods of extreme liquidity, such as 2021, investors favored loss-making growth stocks over high-ROIC, cash-generative businesses.
✗ When interest rates drop sharply, as in 2009, deep-value cyclicals often rebound more aggressively than high-ROIC defensive stocks.

How to Use the Screener Results Table

To build a resilient portfolio, do not buy stocks on simple statistics alone. Use the key columns in our table to audit the durability, safety, and returns of each stock:

ROIC Percentage

Measures how effectively a company turns capital into profit; Visa's 30%+ ROIC demonstrates its superior payment network moat.

Net Margin Percentage

Shows profit per dollar of revenue; luxury brands like LVMH maintain 18%+ margins, far exceeding the 5% margins of retailers like Target.

Debt/Equity Ratio

Indicates leverage; a ratio under 0.5 like Johnson & Johnson's ensures stability, unlike the high-leverage profiles that crippled firms like Bed Bath & Beyond.

Free Cash Flow Currency

Actual cash generated; Alphabet's massive FCF allows for consistent buybacks, unlike capital-intensive firms like Intel that burn cash on fabs.

Risk Factors & Warning Signs to Track

The Valuation Trap

The biggest risk is overpaying for high ROIC. For example, Home Depot is a high-ROIC business, but buying it at a 35x P/E in 2021 led to significant underperformance as the valuation compressed in 2022.

What are High ROIC Stocks?

These are high-quality companies that consistently generate superior returns on the capital they deploy back into their businesses, indicating strong competitive advantages.

ROIC ≥ 15%
5-Year Avg ROIC ≥ 12%
Debt-to-Equity < 1.0
FCF Margin ≥ 10%
Operating Margin > 15%

Why Invest in High ROIC Stocks?

Compounding Power

Reinvests profits at high rates of return.

Economic Moats

Signals strong pricing power and competitive advantages.

Capital Efficiency

Generates more cash with less capital employed.

Premium Performance

Historically outperforms the broader market over time.

SCREEN CURATED BY

Anish Das

MBA, IIM Kozhikode · Founder & Individual Investor

5+ years experience

Founder of VCP Scanner, former Flipkart Brand Manager, and active US equity investor focused on transparent research workflows.

Editorial Disclosure: The data in this screener is systematically filtered using transparent rules, ensuring unbiased results. Reviewed for E-E-A-T standards. Not financial advice.

Frequently Asked Questions

Why is 20% ROIC the magic number?

20% represents a threshold where a company creates value well above its cost of capital, similar to how Nike maintained high ROIC to fund its global expansion.

Can a company have high ROIC and still fail?

Yes, if they carry too much debt; Bed Bath & Beyond had high historical returns but collapsed in 2023 due to an unsustainable debt structure.

How often should I re-screen?

Quarterly is standard, as seen when companies like Meta reported shifting margins in 2022, requiring a re-evaluation of their ROIC profile.

Does this screen work for banks?

No, banks use high leverage by design; a bank with a 0.5 Debt/Equity ratio would be an outlier, unlike a tech firm like Adobe.

What if a company has high ROIC but zero growth?

It becomes a 'cash cow' like Coca-Cola, which provides steady dividends but may not provide the 20% annual stock price growth seen in high-growth tech.

Is high ROIC better than high P/E?

High ROIC is a measure of quality, while P/E is a measure of price; buying a high-ROIC stock like Nvidia at a 100x P/E in 2023 carries massive valuation risk.

How do I spot a fake ROIC?

Look for companies that inflate ROIC by taking on excessive debt, a tactic that eventually led to the downfall of Enron in 2001.

Does this screen include dividends?

This screen focuses on capital efficiency, but high-ROIC firms like Microsoft often use their excess cash to pay dividends and buy back stock.

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