ROIC - Ceta Research

Growth of $10,000 invested in capital-efficient Swiss stocks (SIX) vs SMI, 2000-2025

Switzerland

Capital Efficiency in Switzerland: 10.20% CAGR, +7.13% vs SMI

Testing capital efficiency on SIX: low-capex, high-ROIC Swiss companies delivered 10.20% CAGR from 2000-2025, beating the SMI (3.07% CAGR) by 7.13%/year. 82.6% win rate, the highest of any market tested.

ROIC

Sustained ROIC on UK Stocks: 7.88% CAGR, Beats FTSE 100 by 6.73%

Sustained high ROIC on LSE stocks from 2000 to 2025. 7.62% CAGR vs 7.30% SPY. Borderline alpha (+0.32%), but the quality spread is real: sustained beats low ROIC by 2.74% annually. Down capture of 74.9%.

ROIC

Sustained ROIC on German Stocks: Beats DAX by 2.81% with Exceptional Risk Control

Sustained high ROIC on XETRA stocks from 2000 to 2025. 7.08% CAGR vs 7.30% SPY. No alpha, but the best max drawdown (-31.4%) and lowest volatility (20.37%) of any exchange tested. Quality as risk reducer, not return booster.

ROIC

Sustained ROIC on Indian Stocks: 14.25% CAGR, Beats Sensex by 2.76%

Sustained high ROIC on BSE+NSE from 2000 to 2025. 15.55% CAGR vs 7.30% SPY. India is the only market where persistence alpha (+4.98%) is positive. The trade-off: 52% volatility and -56.9% max drawdown.

Growth of $10,000 invested in capital-efficient UK stocks (LSE) vs FTSE 100, 2000-2025

UK

Capital Efficiency in the UK: 9.34% CAGR, +8.12% vs FTSE 100

Testing capital efficiency on the LSE: low-capex, high-ROIC UK companies delivered 9.34% CAGR from 2000-2025, beating the FTSE 100 (1.23% CAGR) by 8.12%/year. The widest excess of any market tested.

Growth of $10,000 invested in capital-efficient US stocks vs S&P 500, 2000-2025

US

Capital Efficiency: How Asset-Light Businesses Beat the S&P 500 by 2.54%/Year

Testing capital efficiency across NYSE, NASDAQ, AMEX: companies spending <8% of revenue on capex while earning >15% ROIC delivered 10.40% CAGR from 2000-2025. Asset-light businesses compound faster with less reinvestment drag.

India

Capital Efficiency in India: 21.44% CAGR from Low-Capex, High-ROIC Companies

Testing capital efficiency in India (NSE): companies spending <8% of revenue on capex while earning >15% ROIC delivered 21.44% CAGR from 2004-2025, beating the Sensex by 6.96%/year. Asset-light businesses thrive in India's growth economy.

Growth of $10,000 invested in capital-efficient German stocks (XETRA) vs DAX, 2000-2025

Germany

Capital Efficiency in Germany: 8.56% CAGR, +3.52% vs DAX

Testing capital efficiency on XETRA: low-capex, high-ROIC German companies delivered 8.56% CAGR from 2000-2025, beating the DAX by 3.52%/year. Lower volatility and better drawdown protection than the benchmark.

Capital Efficiency CAGR comparison across India, Switzerland, UK, US, Germany, and China markets

Multi-Market

Capital Efficiency Across Markets: A Six-Market Study

Testing capital efficiency across 6 major markets (2000-2025): India +6.96% vs Sensex, Switzerland +7.13% vs SMI, UK +8.12% vs FTSE, Germany +3.52% vs DAX, US +2.54% vs SPY, China -0.64% vs SSE. How low-capex, high-ROIC strategies travel across markets.

Growth of $10,000 invested in FCF Compounders vs S&P 500 on US stocks from 2000 to 2025. Strategy grew to $148K, SPY to $66K.

quality investing

FCF Compounders: 25 Years of Buying Companies That Grow Cash Every Year on US Stocks

We screened for companies that grew FCF in 4+ of the last 5 years with ROIC above 15% and backtested on US stocks from 2000-2025. 11.39% CAGR vs 7.85% for SPY. Zero cash periods, 64% win rate, 68.1% down capture.