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 Telecommunications Co KSC's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 12.65%.
As of today (2026-07-08), Kuwait Telecommunications Co KSC's WACC % is 10.17%. Kuwait Telecommunications Co KSC's ROC % is 12.04% (calculated using TTM income statement data).
Kuwait Telecommunications Co KSC generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Kuwait Telecommunications Co KSC (KUW:STC) 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 Telecommunications Co KSC's WACC % is 10.17%. Kuwait Telecommunications Co KSC's ROC % is 12.04% (calculated using TTM income statement data).
Kuwait Telecommunications Co KSC generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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 Telecommunications Co KSC ROC % Related Terms
Kuwait Telecommunications Co KSC 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.
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 Telecommunications Co KSC (KUW:STC) has a ROC % of 12.65% 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 Telecommunications Co KSC and its competitors.
Is Kuwait Telecommunications Co KSC's ROC % too high?
Kuwait Telecommunications Co KSC's current ROC % is 12.65%. The Telecommunication Services industry median ROC % is 4.53. Kuwait Telecommunications Co KSC's value of 12.65% is 179.2% above this industry median. Overall, Kuwait Telecommunications Co KSC has a GF Score™ of 56/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kuwait Telecommunications Co KSC's ROC % compare to TMUS and VZ?
Kuwait Telecommunications Co KSC's ROC % of 12.65% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.53. Kuwait Telecommunications Co KSC's value of 12.65% is 179.2% above 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 Telecommunication Services company?
The median ROC % among Telecommunication Services companies is 4.53, based on 361 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 Telecommunications Co KSC's current ROC % of 12.65% is 179.2% above 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 Telecommunications Co KSC and its competitors. For the Telecommunication Services industry, the median ROC % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kuwait Telecommunications Co KSC's current ROC % is 12.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kuwait Telecommunications Co KSC stock overvalued right now?
Based on GuruFocus' analysis, Kuwait Telecommunications Co KSC (KUW:STC) is currently considered Modestly Overvalued. The stock's GF Value™ is KWD0.58, compared to a current price of KWD0.64 — trading 11% above its estimated fair value. The current ROC % is 12.65% and 179.2% above the Telecommunication Services industry median of 4.53. Kuwait Telecommunications Co KSC's overall GF Score™ is 56/100 with 9 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 Telecommunications Co KSC (KUW:STC), the current ROC % is 12.65% 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 Telecommunications Co KSC (KUW:STC) Overvalued in 2026?
Based on GuruFocus' analysis, Kuwait Telecommunications Co KSC stock appears to be overvalued.
The current stock price of KWD0.64 is trading 11% above its estimated GF Value™ of KWD0.58.
GuruFocus considers Kuwait Telecommunications Co KSC to be Modestly Overvalued.
Key valuation signals for KUW:STC:
ROC %: 12.65%
GF Value™: KWD0.58 vs. price of KWD0.64 (11% above fair value)
Industry Position: 179.2% above the Telecommunication Services median
No single metric tells the full story. See the KUW:STC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kuwait Telecommunications Co KSC Business Description
Kuwait Telecommunications Co KSC is a telecommunication service provider. The company provides internet access using 4G LTE technology, and 5G technology. The principal activities of the company are to purchase, supply, install, operate, and maintain wireless telecommunication devices and equipment. The company offers numerous opportunities in the field of telecommunications, entertainment, information, digital, and data transfer services. The Group has identified Consumer (i.e., Individual customers) and Enterprise (i.e., Corporates & others) as operating segments.
56GF Score
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