Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) ROCE % Explanation
ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.
Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.
Heavy Engineering Industries and Shipbuilding Co KSC ROCE % Related Terms
Heavy Engineering Industries and Shipbuilding Co KSC ROCE % 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.
Heavy Engineering Industries and Shipbuilding Co KSC ROCE % Chart
Heavy Engineering Industries and Shipbuilding Co KSC Annual Data
(1) Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) has a ROCE % of 6.76% as of Mar. 2026.
Is Heavy Engineering Industries and Shipbuilding Co KSC's ROCE % too high?
Heavy Engineering Industries and Shipbuilding Co KSC's current ROCE % is 6.76%. The Construction industry median ROCE % is 8.20. Heavy Engineering Industries and Shipbuilding Co KSC's value of 6.76% is 17.6% below this industry median. Overall, Heavy Engineering Industries and Shipbuilding Co KSC has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Heavy Engineering Industries and Shipbuilding Co KSC's ROCE % compare to PWR and FIX?
Heavy Engineering Industries and Shipbuilding Co KSC's ROCE % of 6.76% can be compared against companies in the Construction industry. The industry median ROCE % is 8.20. Heavy Engineering Industries and Shipbuilding Co KSC's value of 6.76% is 17.6% 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 ROCE % for a Construction company?
The median ROCE % among Construction companies is 8.20, based on 1,751 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Heavy Engineering Industries and Shipbuilding Co KSC's current ROCE % of 6.76% is 17.6% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Construction industry, the median ROCE % is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heavy Engineering Industries and Shipbuilding Co KSC's current ROCE % is 6.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heavy Engineering Industries and Shipbuilding Co KSC stock overvalued right now?
Based on GuruFocus' analysis, Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) is currently considered Possible Value Trap. The stock's GF Value™ is KWD1.04, compared to a current price of KWD0.70 — trading 32.7% below its estimated fair value. The current ROCE % is 6.76% and 17.6% below the Construction industry median of 8.20. Heavy Engineering Industries and Shipbuilding Co KSC's overall GF Score™ is 76/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP), the current ROCE % is 6.76% 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 Heavy Engineering Industries and Shipbuilding Co KSC (KUW:SHIP) Overvalued in 2026?
Based on GuruFocus' analysis, Heavy Engineering Industries and Shipbuilding Co KSC stock appears to be undervalued.
The current stock price of KWD0.70 is trading 32.7% below its estimated GF Value™ of KWD1.04.
GuruFocus considers Heavy Engineering Industries and Shipbuilding Co KSC to be Possible Value Trap.
Key valuation signals for KUW:SHIP:
ROCE %: 6.76%
GF Value™: KWD1.04 vs. price of KWD0.70 (32.7% below fair value)
Industry Position: 17.6% below the Construction median
No single metric tells the full story. See the KUW:SHIP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Heavy Engineering Industries and Shipbuilding Co KSC Business Description
Heavy Engineering Industries and Shipbuilding Co KSC is engaged in engineering, procurement, and construction (EPC) contracting, focusing on the shipping and maritime industry in Kuwait. The Company serves sectors including oil and gas, refineries, petrochemicals, power, water distillation and desalination, shipbuilding, ship repair, dredging, and maritime construction. Its activities include industrial and marine works, installation and maintenance services, trading of equipment and spare parts, and contracting and tendering with international companies. It also provides services such as shipyard operations, fabrication, testing and calibration, quality control, scaffolding, galvanizing, onshore and offshore operations, technical manpower supply, and design and engineering services.
76GF Score
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