RiskROIC Min 5Y#103
Maximum Drawdown 1Y expresses the financial stress or solvency profile of the business.
By Javier Sanz, Founder & Lead AnalystEditorially reviewed
Last updated: Reviewed by: Javier Sanz
Formula
Minimum ROIC over the past 5 years
Description
The lowest ROIC recorded over the past five years. A high minimum ROIC indicates the company maintains strong returns even during challenging periods. This is a better measure of moat durability than average ROIC, which can be inflated by one exceptional year.
Interpretation
Above 10% minimum ROIC over five years indicates a genuinely strong business. Below the cost of capital (typically 8-10%) even once suggests the moat may have weaknesses. Compare the gap between minimum and maximum ROIC to assess cyclicality.
Related metrics: Beta (Market Sensitivity). (Updated 2026)
Further Reading
- SEC EDGAR primary filings on Maximum Drawdown 1Y (Max Drawdown)- Primary source filings used to calculate Maximum Drawdown 1Y (Max Drawdown).
FAQ
How is Maximum Drawdown 1Y calculated?+
Maximum Drawdown 1Y uses the formula: Minimum ROIC over the past 5 years. compare against sector median on /screener with the Sector filter applied. ValueMarkers refreshes the calculation within 24 hours of each new SEC filing using SEC EDGAR balance-sheet + cash-flow statements.
What is a good Maximum Drawdown 1Y value by sector?+
There is no single 'good' value for Maximum Drawdown 1Y — context is sector-driven. compare against sector median on /screener with the Sector filter applied. The /screener exposes sector-relative percentiles for Maximum Drawdown 1Y on every ticker, so you can compare against the sector median rather than the broad-market median.
Which investors use Maximum Drawdown 1Y?+
Howard Marks, Seth Klarman, Bill Ackman in distressed scenarios cite Maximum Drawdown 1Y as a key input to to flag solvency stress and avoid permanent capital loss. The academic anchor is Altman (1968) Z-Score and Piotroski (2000) F-Score. ValueMarkers weights this within the Risk pillar of the VMCI score (8% of total).
What are the limitations of Maximum Drawdown 1Y?+
Maximum Drawdown 1Y can mislead in asset-heavy industries where leverage ratios understate true risk. Pair Maximum Drawdown 1Y with at least two cross-checks from other VMCI pillars — for example, free cash flow trend, balance-sheet quality, and earnings consistency — before drawing a single-metric conclusion.
Where can I see live Maximum Drawdown 1Y data?+
Visit any /stock/[ticker] page on ValueMarkers to see live Maximum Drawdown 1Y data, sector percentiles, and the VMCI composite score that integrates Maximum Drawdown 1Y with 119 other indicators across 100,000+ stocks. The free /screener exposes Maximum Drawdown 1Y as a filterable column.
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Related Risk Indicators
Beta (Market Sensitivity)GM Trend
Beta is the metric used to the financial stress or solvency profile of the business.
52-Week Price VolatilityNM Trend
52-Week Price Volatility measures the financial stress or solvency profile of the business.
Free Cash Flow to Enterprise (FCF to Firm)EQ
Free Cash Flow to Enterprise captures the financial stress or solvency profile of the business.
Operating LeverageRev Growth Streak
Operating Leverage measures the financial stress or solvency profile of the business.
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