ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Thai Solar Energy PCL's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.23%.
As of today (2026-06-27), Thai Solar Energy PCL's WACC % is 5.51%. Thai Solar Energy PCL's ROIC % is 1.78% (calculated using TTM income statement data).
Thai Solar Energy PCL earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Thai Solar Energy PCL (BKK:TSE-R) 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, Thai Solar Energy PCL's WACC % is 5.51%. Thai Solar Energy PCL's ROIC % is 1.78% (calculated using TTM income statement data).
Thai Solar Energy 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.
* 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.
Thai Solar Energy PCL ROIC % Competitor Comparison
For the Utilities - Renewable subindustry, Thai Solar Energy 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.
Thai Solar Energy PCL ROIC % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Thai Solar Energy PCL's ROIC % distribution charts can be found below:
* The bar in red indicates where Thai Solar Energy 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.
Thai Solar Energy PCL (BKK:TSE-R) has a ROIC % of 5.23% 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 Thai Solar Energy PCL and its competitors.
Is Thai Solar Energy PCL's ROIC % too high?
Thai Solar Energy PCL's current ROIC % is 5.23%. The Utilities - Independent Power Producers industry median ROIC % is 2.27. Thai Solar Energy PCL's value of 5.23% is 130.9% above this industry median. Overall, Thai Solar Energy PCL has a GF Score™ of 41/100, reflecting its overall financial health beyond just this single metric.
How does Thai Solar Energy PCL's ROIC % compare to competitors?
Thai Solar Energy PCL's ROIC % of 5.23% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROIC % is 2.27. Thai Solar Energy PCL's value of 5.23% is 130.9% 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 an Utilities - Independent Power Producers company?
The median ROIC % among Utilities - Independent Power Producers companies is 2.27, based on 430 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. Thai Solar Energy PCL's current ROIC % of 5.23% is 130.9% 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 Thai Solar Energy PCL and its competitors. For the Utilities - Independent Power Producers industry, the median ROIC % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Thai Solar Energy PCL's current ROIC % is 5.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Thai Solar Energy PCL stock overvalued right now?
Thai Solar Energy PCL (BKK:TSE-R) has a current ROIC % of 5.23%. The stock's GF Value™ is ฿0.73, compared to a current price of ฿0.61 — trading 17% below its estimated fair value. The current ROIC % is 5.23% and 130.9% above the Utilities - Independent Power Producers industry median of 2.27. Thai Solar Energy PCL's overall GF Score™ is 41/100 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 Thai Solar Energy PCL (BKK:TSE-R), the current ROIC % is 5.23% 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 Thai Solar Energy PCL (BKK:TSE-R) Overvalued in 2026?
Based on GuruFocus' analysis, Thai Solar Energy PCL stock appears to be undervalued.
The current stock price of ฿0.61 is trading 17% below its estimated GF Value™ of ฿0.73.
Key valuation signals for BKK:TSE-R:
ROIC %: 5.23%
GF Value™: ฿0.73 vs. price of ฿0.61 (17% below fair value)
Industry Position: 130.9% above the Utilities - Independent Power Producers median
No single metric tells the full story. See the BKK:TSE-R stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Thai Solar Energy PCL is engaged in the generation and distribution of electricity from solar power to the government and private sector. The company has its operational footprints in Thailand and Japan. Its operating segments are Domestic and International of which, the company generates a majority of its revenue from the Domestic segment. The firm's projects are Solar PV Farms Thailand, Solar PV Farms Japan, Solar PV Rooftop Plants Thailand and Biomass Power Plants.
41GF Score
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