Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. IOI Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 53.91%.
As of today (2026-07-30), IOI Bhd's WACC % is 8.82%. IOI Bhd's ROC % is 19.92% (calculated using TTM income statement data).
IOI Bhd 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.
IOI Bhd (XKLS:1961) 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, IOI Bhd's WACC % is 8.82%. IOI Bhd's ROC % is 19.92% (calculated using TTM income statement data).
IOI Bhd 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.
IOI Bhd ROC % Related Terms
IOI Bhd ROC % Historical Data
* Premium members only.
The historical data trend for IOI Bhd's ROC % can be seen below:
* 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.
IOI Bhd (XKLS:1961) has a ROC % of 53.91% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on IOI Bhd and its competitors.
Is IOI Bhd's ROC % too high?
IOI Bhd's current ROC % is 53.91%. The Consumer Packaged Goods industry median ROC % is 5.22. IOI Bhd's value of 53.91% is 932.8% above this industry median. Overall, IOI Bhd has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does IOI Bhd's ROC % compare to KHC and GIS?
IOI Bhd's ROC % of 53.91% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROC % is 5.22. IOI Bhd's value of 53.91% is 932.8% 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 Consumer Packaged Goods company?
The median ROC % among Consumer Packaged Goods companies is 5.22, based on 1,950 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. IOI Bhd's current ROC % of 53.91% is 932.8% 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 IOI Bhd and its competitors. For the Consumer Packaged Goods industry, the median ROC % is 5.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IOI Bhd's current ROC % is 53.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IOI Bhd stock overvalued right now?
Based on GuruFocus' analysis, IOI Bhd (XKLS:1961) is currently considered Fairly Valued. The stock's GF Value™ is RM4.13, compared to a current price of RM4.47 — trading 8.2% above its estimated fair value. The current ROC % is 53.91% and 932.8% above the Consumer Packaged Goods industry median of 5.22. IOI Bhd's overall GF Score™ is 81/100 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 IOI Bhd (XKLS:1961), the current ROC % is 53.91% 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 IOI Bhd (XKLS:1961) Overvalued in 2026?
Based on GuruFocus' analysis, IOI Bhd stock appears to be overvalued.
The current stock price of RM4.47 is trading 8.2% above its estimated GF Value™ of RM4.13.
GuruFocus considers IOI Bhd to be Fairly Valued.
Key valuation signals for XKLS:1961:
ROC %: 53.91%
GF Value™: RM4.13 vs. price of RM4.47 (8.2% above fair value)
Industry Position: 932.8% above the Consumer Packaged Goods median
No single metric tells the full story. See the XKLS:1961 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IOI Corp Bhd is a palm oil producer. Its operations include oil palm plantations and Resource-based manufacturing divisions. The plantations are monitored to check oil palm nutrient status, seed breeding, ground conditions, and other data sources to improve the efficiency of each estate. The majority of revenue from the plantations comes from sales to its manufacturing divisions. Once the oil reaches the manufacturing divisions, it can be refined to create snack ingredients, soap, plastics, fatty acids, and other oils. The products are exported to many different customers, including some multinational corporations. The Group has two (2) reportable operating segments: Plantation, Resource-based manufacturing.
81GF Score
Get the complete analysis for XKLS:1961
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XKLS:1961 has been successfully added to your 
