ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. SCG Decor PCL's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.92%.
As of today (2026-06-27), SCG Decor PCL's WACC % is 5.26%. SCG Decor PCL's ROIC % is 2.95% (calculated using TTM income statement data).
SCG Decor PCL earns returns that do not match up to its cost of capital. It will destroy value as it grows.
SCG Decor PCL (BKK:SCGD) 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, SCG Decor PCL's WACC % is 5.26%. SCG Decor PCL's ROIC % is 2.95% (calculated using TTM income statement data).
SCG Decor PCL 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.
SCG Decor PCL ROIC % Related Terms
SCG Decor PCL ROIC % Historical Data
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The historical data trend for SCG Decor PCL'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, SCG Decor PCL'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.
SCG Decor PCL ROIC % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, SCG Decor PCL's ROIC % distribution charts can be found below:
* The bar in red indicates where SCG Decor PCL'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.
SCG Decor PCL (BKK:SCGD) has a ROIC % of 2.92% 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 SCG Decor PCL and its competitors.
Is SCG Decor PCL's ROIC % too high?
SCG Decor PCL's current ROIC % is 2.92%. The Building Materials industry median ROIC % is 3.58. SCG Decor PCL's value of 2.92% is 18.4% below this industry median. Overall, SCG Decor PCL has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does SCG Decor PCL's ROIC % compare to CRH and VMC?
SCG Decor PCL's ROIC % of 2.92% can be compared against companies in the Building Materials industry. The industry median ROIC % is 3.58. SCG Decor PCL's value of 2.92% is 18.4% 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 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. SCG Decor PCL's current ROIC % of 2.92% is 18.4% 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 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 SCG Decor PCL 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. SCG Decor PCL's current ROIC % is 2.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SCG Decor PCL stock overvalued right now?
SCG Decor PCL (BKK:SCGD) has a current ROIC % of 2.92%. The current ROIC % is 2.92% and 18.4% below the Building Materials industry median of 3.58. SCG Decor PCL's overall GF Score™ is 15/100 with 5 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 SCG Decor PCL (BKK:SCGD), the current ROIC % is 2.92% 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.
SCG Decor PCL operates as a holding company in which its subsidiaries and associates operate business as manufacturers of floor tiles, wall tiles, and sanitary ware products in Thailand and other countries such as Vietnam. It consists of segments namely Decor Surfaces Business, which derives the maximum revenue; Bathroom Business, and others segment. Geographically, it generates majority revenue from Thailand and also has its presence in Vietnam, The Philippines and Indonesia, and Other countries.
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