ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Kuwait Co for Process Plant Constructionntracting KPSC's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 1.29%.
Kuwait Co for Process Plant Constructionntracting KPSC (KUW:KCPC) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Kuwait Co for Process Plant Constructionntracting KPSC's WACC % is 10.39%. Kuwait Co for Process Plant Constructionntracting KPSC's ROC % is 4.42% (calculated using TTM income statement data).
Kuwait Co for Process Plant Constructionntracting KPSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Kuwait Co for Process Plant Constructionntracting KPSC ROC % Related Terms
Kuwait Co for Process Plant Constructionntracting KPSC ROC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Kuwait Co for Process Plant Constructionntracting KPSC ROC % Chart
Kuwait Co for Process Plant Constructionntracting KPSC Annual Data
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Kuwait Co for Process Plant Constructionntracting KPSC (KUW:KCPC) has a ROC % of 1.29% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Kuwait Co for Process Plant Constructionntracting KPSC and its competitors.
Is Kuwait Co for Process Plant Constructionntracting KPSC's ROC % too high?
Kuwait Co for Process Plant Constructionntracting KPSC's current ROC % is 1.29%. The Construction industry median ROC % is 4.65. Kuwait Co for Process Plant Constructionntracting KPSC's value of 1.29% is 72.3% below this industry median. Overall, Kuwait Co for Process Plant Constructionntracting KPSC has a GF Score™ of 42/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kuwait Co for Process Plant Constructionntracting KPSC's ROC % compare to PWR and FIX?
Kuwait Co for Process Plant Constructionntracting KPSC's ROC % of 1.29% can be compared against companies in the Construction industry. The industry median ROC % is 4.65. Kuwait Co for Process Plant Constructionntracting KPSC's value of 1.29% is 72.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Construction company?
The median ROC % among Construction companies is 4.65, based on 1,755 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kuwait Co for Process Plant Constructionntracting KPSC's current ROC % of 1.29% is 72.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Kuwait Co for Process Plant Constructionntracting KPSC and its competitors. For the Construction industry, the median ROC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kuwait Co for Process Plant Constructionntracting KPSC's current ROC % is 1.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kuwait Co for Process Plant Constructionntracting KPSC stock overvalued right now?
Based on GuruFocus' analysis, Kuwait Co for Process Plant Constructionntracting KPSC (KUW:KCPC) is currently considered Modestly Undervalued. The stock's GF Value™ is KWD0.38, compared to a current price of KWD0.32 — trading 15.3% below its estimated fair value. The current ROC % is 1.29% and 72.3% below the Construction industry median of 4.65. Kuwait Co for Process Plant Constructionntracting KPSC's overall GF Score™ is 42/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Kuwait Co for Process Plant Constructionntracting KPSC (KUW:KCPC), the current ROC % is 1.29% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Kuwait Co for Process Plant Constructionntracting KPSC (KUW:KCPC) Overvalued in 2026?
Based on GuruFocus' analysis, Kuwait Co for Process Plant Constructionntracting KPSC stock appears to be undervalued.
The current stock price of KWD0.32 is trading 15.3% below its estimated GF Value™ of KWD0.38.
GuruFocus considers Kuwait Co for Process Plant Constructionntracting KPSC to be Modestly Undervalued.
Key valuation signals for KUW:KCPC:
ROC %: 1.29%
GF Value™: KWD0.38 vs. price of KWD0.32 (15.3% below fair value)
Industry Position: 72.3% below the Construction median
No single metric tells the full story. See the KUW:KCPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kuwait Co for Process Plant Constructionntracting KPSC Business Description
Kuwait Co for Process Plant Construction & Contracting KPSC is engaged in building, civil construction, and infrastructure development activities. Its services comprise Civil Engineering, Road and Infrastructure, Specialty Projects, Electrical Engineering, Engineering Products, Water Facilities, Building Transport Systems, Scaffolding & Equipment Rentals, and Marble & Natural Stone Products and Services. It operates in three segments: Construction, installation, and maintenance; Hotels; and Investment of surplus funds, of which all of its revenue comes from the Construction segment. The company's geographical segments are Kuwait, the United Arab Emirates, Oman, and Lebanon.
42GF Score
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