Updated on June 12th, 2025 by Bob Ciura
Return on invested capital, or ROIC, is a valuable financial ratio that investors can add to their research process.
Understanding ROIC and using it to screen for high ROIC stocks is a good way to focus on the highest-quality businesses.
With this in mind, we ran a stock screen to focus on the highest ROIC stocks in the S&P 500.
You can download a free copy of the top 100 stocks with the highest ROIC (along with important financial metrics like dividend yields and price-to-earnings ratio) by clicking on the link below:
Using ROIC allows investors to filter out the highest-quality businesses that are effectively generating a return on capital.
This article will explain ROIC and its usefulness for investors. It will also list the top 10 highest ROIC stocks right now.
Table Of Contents
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What Is ROIC?
Put simply, return on invested capital (ROIC) is a financial ratio that shows a company’s ability to allocate capital. The common formula to calculate ROIC is to divide a company’s after-tax net operating profit, by the sum of its debt and equity capital.
Once the ROIC is calculated, it is evaluated against a company’s weighted average cost of capital, commonly referred to as WACC.
If a company’s WACC is not immediately available, it can be calculated by taking a weighted average of the cost of a company’s debt and equity.
Cost of debt is calculated by averaging the yield to maturity for a company’s outstanding debt. This is fairly easy to find, as a publicly-traded company must report its debt obligations.
Cost of equity is typically calculated by using the capital asset pricing model, otherwise known as CAPM.
Once the WACC is calculated, it can be compared with the ROIC. Investors want to see a company’s ROIC exceed its WACC.
This indicates the underlying business is successfully investing its capital to generate a profitable return. In this way, the company is creating economic value.
Generally, stocks generating the highest ROIC are doing the best job of allocating their investors’ capital. With this in mind, the following section ranks the 10 stocks with the highest ROIC.
The Top 10 Highest ROIC Stocks
The following 10 stocks have the highest ROIC in the Sure Analysis Research Database. Stocks are listed by ROIC, from lowest to highest.
High ROIC Stock #10: Yum Brands Inc. (YUM)
- Return on invested capital: 44.6%
Yum Brands owns the KFC, Pizza Hut, Taco Bell, and The Habit Restaurants chains. It is present in more than 155 countries and has more than 59,000 restaurants, 60% of which are located abroad. KFC generates about half of the total revenue and operating profit of the company.
In late April, Yum Brands reported (4/30/25) results for Q1-2025. It grew its sales 5% over the prior year’s quarter thanks to 11% growth at Taco Bell and 5% growth at KFC. Store count grew 3%.
Digital sales were ~$9 billion and comprised 55% of total sales. Earnings-per-share grew 13%, from $1.15 to $1.30, and exceeded the analysts’ consensus by $0.02.
Yum Brands keeps opening new stores at a fast pace. Management reiterated its guidance for 8% growth of operating income in 2025. Accordingly, we still expect earnings-per-share of $5.92 this year.
Click here to download our most recent Sure Analysis report on YUM (preview of page 1 of 3 shown below):
High ROIC Stock #9: TJX Companies (TJX)
- Return on invested capital: 46.9%
TJX Companies is a leading off-price retailer of apparel and home fashions in the U.S. and worldwide. As of November 2, 2024, the company operated 5,057 stores in nine countries.
These include 1,331 T.J. Maxx (26% of total), 1,219 Marshalls (24%) and 941 HomeGoods (19%) in the United States. TJX also operates e-commerce sites. In a normal year, the company generates ~$50 billion in annual revenue and ~$4 billion in net profit.
On 5/21/25, TJX released its fiscal Q1 2026 results for the period ending 5/3/25. For the quarter, net sales rose 5% year over year to $13.1 billion. Net sales growth occurred across all its divisions – Marmaxx (U.S.) +4% year over year, HomeGoods (U.S.) +8%, TJX Canada +3%, and TJX International +8%. Consolidated comparable store sales rose 3%, driven by an increase in customer transactions.
It witnessed comparable store sales growth across all its divisions with the strongest of 5% at TJX Canada and TJX International (Europe & Australia), followed by 4% at at HomeGoods (U.S.), and 2% at Marmaxx (U.S.).
Net income came in at $1.0 billion, down 3.2% year over year. Diluted earnings-per-share (“EPS”) fell 1.1% to $0.92, helped by a 1.2% reduction in its share count. The company repurchased $613 million worth of stock at an average price of ~$120.20 per share.
Click here to download our most recent Sure Analysis report on TJX (preview of page 1 of 3 shown below):
High ROIC Stock #8: Altria Group (MO)
- Return on invested capital: 47.5%
Altria is a tobacco stock that sells cigarettes, chewing tobacco, cigars, e-cigarettes, and more under a variety of brands, including Marlboro, Skoal, and Copenhagen, among others.
With a current dividend yield of nearly 8%, Altria is an ideal retirement investment stock.
This is a period of transition for Altria. The decline in the U.S. smoking rate continues. In response, Altria has invested heavily in new products that appeal to changing consumer preferences, as the smoke-free category continues to grow.
Source: Investor Presentation
The company also has a 35% investment stake in e-cigarette maker JUUL, and a 45% stake in the Canadian cannabis producer Cronos Group (CRON).
On April 29, 2025, Altria Group reported its financial results for the first quarter of 2025. The company posted net revenues of $5.26 billion, a 5.7% decline from the same period in 2024, attributed primarily to lower cigarette shipment volumes, which fell by 13.7%.
Despite this, adjusted diluted earnings per share (EPS) rose by 6% year-over-year to $1.23, surpassing analyst expectations of $1.19.
In the smokeable products segment, net revenues declined by 5.8%, but adjusted operating companies income increased by 1.2%, driven by higher pricing and lower manufacturing costs.
The oral tobacco products segment saw a 0.5% increase in net revenues, supported by an 18% rise in on! nicotine pouch shipments.
Click here to download our most recent Sure Analysis report on Altria (preview of page 1 of 3 shown below):
High ROIC Stock #7: Starbucks Corporation (SBUX)
- Return on invested capital: 51.2%
Starbucks began with a single store in Seattle’s Pike Place Market in 1971 and now has more than 39,000 stores worldwide. Nearly half of the stores are in the U.S. and nearly 20% of the stores are in China.
The company operates under the Starbucks brand, but also holds the Teavana, Evolution Fresh, and Ethos Water brands in its portfolio. The company generated $36 billion in annual revenue in fiscal 2024.
In late April, Starbucks reported (4/29/25) financial results for the second quarter of fiscal 2025. Comparable store sales declined -1% due to a -2% decline in the number of transactions.
Same-store sales in China were flat, after many negative quarters in a row. Adjusted earnings-per-share decreased -40%, from $0.68 in the prior year’s quarter to $0.41, and missed the analysts’ consensus by $0.07.
It was a disappointing quarter, as it signaled that the recovery is likely to take longer to materialize.
Click here to download our most recent Sure Analysis report on SBUX (preview of page 1 of 3 shown below):
High ROIC Stock #6: Mastercard Inc. (MA)
- Return on invested capital: 52.9%
MasterCard is a world leader in electronic payments. The company partners with 25,000 financial institutions around the world to provide an electronic payment network. MasterCard has more than 3.1 billion credit and debit cards in use.
On May 1st, 2025, MasterCard reported first quarter results for the period ending March 31st, 2025. For the quarter, revenue grew 14.2% to $7.25 billion, which was $130 million better than expected. Adjusted earnings-per-share of $3.73 compared favorably to $3.31 in the prior year and was $0.17 above estimates.
On a local currency basis, gross dollar volumes for the quarter grew 9% worldwide to $2.42 trillion during the quarter, with the U.S. improving 7% and the rest of the world higher by 10%. Cross border volumes remained strong, growing 15% from the prior year and 20% from Q4 2024.
Click here to download our most recent Sure Analysis report on Mastercard (preview of page 1 of 3 shown below):
High ROIC Stock #5: Apple, Inc. (AAPL)
- Return on invested capital: 54.1%
Apple designs, manufactures and sells products such as iPhones, iPads, Mac, Apple Watch and Apple TV. Apple also has a services business that sells music, apps, and subscriptions.
On May 1st, 2025, Apple reported financial results for the second quarter of fiscal year 2025 (Apple’s fiscal year ends the last Saturday in September). Total sales grew 5% over the prior year’s quarter, to $95.4 billion, thanks to sustained growth in iPhone, iPad and Wearables as well as Services.
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 only once in the last 26 quarters.
Going forward, Apple’s earnings growth will be driven by several factors. One of these is the ongoing cycle of iPhone releases, which creates lumpy results. In the long run, Apple should be able to grow its iPhone sales, albeit in an irregular fashion.
Moreover, in emerging countries where consumers have rising disposable incomes, Apple should be able to increase the number of smartphones it is selling in the coming years. In addition, Apple’s Services unit, which consists of iTunes, Apple Music, the App Store, iCloud, Apple Pay, etc., has recorded a significant revenue growth rate in recent years. Services revenues grow at a fast rate and produce high-margin, recurring revenues.
Click here to download our most recent Sure Analysis report on AAPL (preview of page 1 of 3 shown below):
High ROIC Stock #4: Domino’s Pizza Inc. (DPZ)
- Return on invested capital: 59.3%
Domino’s Pizza was founded in 1960. It is the largest pizza company in the world based on global retail sales. The company operates more than 21,000 stores in more than 90 countries.
It generates nearly half of its sales in the U.S. while 99% of its stores worldwide are owned by independent franchisees.
In late April, Domino’s reported (4/28/25) financial results for the first quarter of fiscal 2025. Its U.S. same-store sales dipped -0.5% but its international same-store sales rose 3.7% over the prior year’s quarter. Earnings-per-share grew 21%, from $3.58 to $4.33, mostly thanks to a re-measurement of the investment of the company in DPC Dash and a lower share count.
Earnings-per-share exceeded the analysts’ consensus by $0.26. Domino’s has beaten the analysts’ estimates in 9 of the last 10 quarters. It still expects to grow its global retail sales and its operating income by 7% and 8% per year, respectively, until the end of 2028.
Click here to download our most recent Sure Analysis report on DPZ (preview of page 1 of 3 shown below):
High ROIC Stock #3: McKesson Corporation (MCK)
- Return on invested capital: 64.3%
McKesson Corporation traces its lineage to 1833 when its founders began to offer wholesale chemicals and pharmaceuticals in New York City.
In the 190 years since, McKesson has grown into a powerhouse in the pharmaceutical and medical distribution industry and today, generates more than $300 billion in annual revenue.
McKesson posted fourth quarter and full-year earnings on May 8th, 2025, and results were somewhat mixed. Adjusted earnings-per-share came to $10.12, which was 29 cents ahead of estimates. Revenue was up 19% year-over-year to $90.8 billion, missing estimates by $3.4 billion.
The big news was that the company announced its intention to separate its medical-surgical solutions division into an independent company.
Management noted strength in the core pharma distribution business, expansion of oncology, and continued growth of biopharma solutions.
Cost optimization initiatives delivered $100 million in cost savings during the year, helping boost margins along with higher revenue. Free cash flow was $7.5 billion during the quarter.
Click here to download our most recent Sure Analysis report on MCK (preview of page 1 of 3 shown below):
High ROIC Stock #2: Otis Worldwide (OTIS)
- Return on invested capital: 69.0%
Otis Worldwide Corp. debuted as an independent, publicly traded company on April 3rd, 2020, after being spun off from United Technologies (previously UTX, now Raytheon Technologies, RTX).
Today Otis is the leading company for elevator and escalator manufacturing, installation, and service.
On April 23rd, 2025, Otis reported financial results for the first quarter of fiscal 2025. Sales and organic sales grew 1% and 4%, respectively, while 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 only twice in the last 20 quarters. Backlog grew 13%. This bodes well for the performance of Otis in the upcoming quarters.
Thanks to sustained business momentum, Otis reiterated its positive guidance for 2025. It expects 2%-4% growth of organic sales and adjusted earnings-per-share of $4.00-$4.10. At the mid-point, this guidance implies 6% growth over the prior year.
Click here to download our most recent Sure Analysis report on OTIS (preview of page 1 of 3 shown below):
High ROIC Stock #1: Cardinal Health (CAH)
- Return on invested capital: 71.6%
Cardinal Health is one of the “Big 3” drug distribution companies along with McKesson (MKC) and AmerisourceBergen (ABC). Cardinal Health serves over 24,000 United States pharmacies and more than 85% of the country’s hospitals.
Over 90% of the company’s revenue comes from the Pharma & Specialty areas.
Source: Investor Presentation
On May 1st, 2025, Cardinal Health reported results for the third quarter of fiscal year 2025 for the period ending March 31st, 2025. For the quarter, revenue was flat at $54.9 billion, but this was $410 million below estimates.
On an adjusted basis, earnings of $568 million, or $2.35 per share, compared favorably to earnings of $511 million, or $2.09 per share, in the prior year. Adjusted EPS was $0.20 better than expected.
For the quarter, revenue for the Pharmaceutical and Specialty Solutions segment was essentially unchanged at $50.4 billion, but segment profit grew 14% to $662 million.
Click here to download our most recent Sure Analysis report on CAH (preview of page 1 of 3 shown below):
Final Thoughts
There are many different ways for investors to value stocks. One popular valuation method is to calculate a company’s return on invested capital.
By doing so, investors can get a better gauge of companies that do the best job of investing their capital.
ROIC is by no means the only metric that investors should use to buy stocks. There are many other worthwhile valuation methods that investors should consider.
That said, the top 10 ROIC stocks on this list have proven the ability to create economic value for shareholders.
Further Reading
If you are interested in finding high-quality dividend growth stocks suitable for long-term investment, the following Sure Dividend databases will be useful:
- The Dividend Aristocrats List: a group of elite S&P 500 stocks with 25+ years of consecutive dividend increases.
- The Dividend Champions List: a broader group of stocks with 25+ years of consecutive dividend increases, without the S&P 500 Index inclusion requirement.
- The Dividend Challengers List: stocks with 5-9 years of consecutive dividend increases.
- The Dividend Achievers List: a group of stocks with 10+ years of consecutive dividend increases.
- The Dividend Kings List: considered to be the best-of-the-best among dividend growth stocks, the Dividend Kings are a group of exceptional dividend stocks with 50+ years of consecutive dividend increases.
- The Blue Chip Stocks List: contains stocks on either the Dividend Achievers, Dividend Aristocrats, or Dividend Kings list.
- The Complete List of Monthly Dividend Stocks: stocks that pay dividends each month, for 12 payments over the year.