ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Gulf Cement Co PSC's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 14.79%.
As of today (2026-06-26), Gulf Cement Co PSC's WACC % is 9.83%. Gulf Cement Co PSC's ROIC % is 3.36% (calculated using TTM income statement data).
Gulf Cement Co PSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Gulf Cement Co PSC (ADX:GCEM) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Gulf Cement Co PSC's WACC % is 9.83%. Gulf Cement Co PSC's ROIC % is 3.36% (calculated using TTM income statement data).
Gulf Cement Co PSC 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 %, ROIC % 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.
Gulf Cement Co PSC ROIC % Related Terms
Gulf Cement Co PSC ROIC % Historical Data
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The historical data trend for Gulf Cement Co PSC's ROIC % 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.
For the Building Materials subindustry, Gulf Cement Co PSC's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Gulf Cement Co PSC ROIC % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Gulf Cement Co PSC's ROIC % distribution charts can be found below:
* The bar in red indicates where Gulf Cement Co PSC's ROIC % falls into.
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.
Gulf Cement Co PSC (ADX:GCEM) has a ROIC % of 14.79% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Gulf Cement Co PSC and its competitors.
Is Gulf Cement Co PSC's ROIC % too high?
Gulf Cement Co PSC's current ROIC % is 14.79%. The Building Materials industry median ROIC % is 3.58. Gulf Cement Co PSC's value of 14.79% is 313.1% above this industry median. Overall, Gulf Cement Co PSC has a GF Score™ of 29/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gulf Cement Co PSC's ROIC % compare to CRH and VMC?
Gulf Cement Co PSC's ROIC % of 14.79% can be compared against companies in the Building Materials industry. The industry median ROIC % is 3.58. Gulf Cement Co PSC's value of 14.79% is 313.1% 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 ROIC % for a Building Materials company?
The median ROIC % among Building Materials companies is 3.58, based on 399 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gulf Cement Co PSC's current ROIC % of 14.79% is 313.1% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Gulf Cement Co PSC and its competitors. For the Building Materials industry, the median ROIC % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gulf Cement Co PSC's current ROIC % is 14.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gulf Cement Co PSC stock overvalued right now?
Based on GuruFocus' analysis, Gulf Cement Co PSC (ADX:GCEM) is currently considered Significantly Overvalued. The stock's GF Value™ is د.إ0.70, compared to a current price of د.إ1.00 — trading 42.9% above its estimated fair value. The current ROIC % is 14.79% and 313.1% above the Building Materials industry median of 3.58. Gulf Cement Co PSC's overall GF Score™ is 29/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Gulf Cement Co PSC (ADX:GCEM), the current ROIC % is 14.79% 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 Gulf Cement Co PSC (ADX:GCEM) Overvalued in 2026?
Based on GuruFocus' analysis, Gulf Cement Co PSC stock appears to be overvalued.
The current stock price of د.إ1.00 is trading 42.9% above its estimated GF Value™ of د.إ0.70.
GuruFocus considers Gulf Cement Co PSC to be Significantly Overvalued.
Key valuation signals for ADX:GCEM:
ROIC %: 14.79%
GF Value™: د.إ0.70 vs. price of د.إ1.00 (42.9% above fair value)
Industry Position: 313.1% above the Building Materials median
No single metric tells the full story. See the ADX:GCEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gulf Cement Co PSC operates as a cement producer that serves customers located in the UAE and the Arab Gulf Zone. Its product offerings include a variety of cements such as Sulphate Resisting Portland Cement, Ordinary Portland Cement, Moderate Sulphate Resisting Portland Cement, and Ground Granulated Blast Furnace Slag, among others. The company has two operating segments, including Manufacturing of all types of cements, and Investments in marketable equity securities, deposits with banks, and investment properties. A majority of its revenue is generated from the Manufacturing segment. Geographically, the company derives maximum revenue from its business within the United Arab Emirates (UAE).
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