Egyptian Chemical Industries (CAI:EGCH) ROIC %: 3.12% (As of Jun. 2015)


What is Egyptian Chemical Industries ROIC %?

Egyptian Chemical Industries CAI:EGCH -0.23% ROIC % is 3.12% as of Jun. 2015.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Egyptian Chemical Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2015 was 3.12%.

As of today (2026-07-11), Egyptian Chemical Industries's WACC % is 0.00%. Egyptian Chemical Industries's ROIC % is 0.00% (calculated using TTM income statement data). Egyptian Chemical Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Egyptian Chemical Industries  (CAI:EGCH) 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, Egyptian Chemical Industries's WACC % is 0.00%. Egyptian Chemical Industries's ROIC % is 0.00% (calculated using TTM income statement data). Egyptian Chemical Industries 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.

Egyptian Chemical Industries ROIC % Related Terms

Egyptian Chemical Industries ROIC % Historical Data

* Premium members only.

The historical data trend for Egyptian Chemical Industries'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.

Egyptian Chemical Industries ROIC % Chart

Egyptian Chemical Industries Annual Data
Trend Dec11 Dec12
ROIC %
0.00 0.00

Egyptian Chemical Industries Semi-Annual Data
Dec12 Jun14 Jun15
ROIC % 0.00 4.74 3.12

Egyptian Chemical Industries ROIC % Competitor Comparison

For the Chemicals subindustry, Egyptian Chemical Industries'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.

Egyptian Chemical Industries ROIC % vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Egyptian Chemical Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where Egyptian Chemical Industries's ROIC % falls into.


Egyptian Chemical Industries ROIC % Calculation

Egyptian Chemical Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2012 is calculated as:

ROIC % (A: Dec. 2012 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2011 ) + Invested Capital (A: Dec. 2012 ))/ count )
=0 * ( 1 - % )/( (0 + 835.521)/ 1 )
=0/835.521
=0.00 %

where

Invested Capital(A: Dec. 2011 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=0 - 0 - ( 0 - max(0, 0 - 0+0))
=0

Invested Capital(A: Dec. 2012 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1775.561 - 0 - ( 940.04 - max(0, 154.513 - 1568.156+940.04))
=835.521

Egyptian Chemical Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2015 is calculated as:

ROIC % (Q: Jun. 2015 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2014 ) + Invested Capital (Q: Jun. 2015 ))/ count )
=36.65 * ( 1 - 0% )/( (0 + 1174.301)/ 1 )
=36.65/1174.301
=3.12 %

where

Invested Capital(Q: Jun. 2014 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=0 - 0 - ( 0 - max(0, 0 - 0+0))
=0

Invested Capital(Q: Jun. 2015 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2821.511 - 0 - ( 1647.21 - max(0, 150.21 - 1933.756+1647.21))
=1174.301

Note: The Operating Income data used here is two times the semi-annual (Jun. 2015) 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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of 3.12% mean?
Egyptian Chemical Industries (CAI:EGCH) has a ROIC % of 3.12% as of Jun. 2015. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Egyptian Chemical Industries and its competitors.
Is Egyptian Chemical Industries' ROIC % too high?
Egyptian Chemical Industries' current ROIC % is 3.12%. The Chemicals industry median ROIC % is 4.47. Egyptian Chemical Industries' value of 3.12% is 30.2% below this industry median.
How does Egyptian Chemical Industries' ROIC % compare to competitors?
Egyptian Chemical Industries' ROIC % of 3.12% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.47. Egyptian Chemical Industries' value of 3.12% is 30.2% 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.47, based on 1,576 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. Egyptian Chemical Industries's current ROIC % of 3.12% is 30.2% 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 Egyptian Chemical Industries and its competitors. For the Chemicals industry, the median ROIC % is 4.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Egyptian Chemical Industries's current ROIC % is 3.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Egyptian Chemical Industries stock overvalued right now?
Egyptian Chemical Industries (CAI:EGCH) has a current ROIC % of 3.12%. The current ROIC % is 3.12% and 30.2% below the Chemicals industry median of 4.47. 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 Egyptian Chemical Industries (CAI:EGCH), the current ROIC % is 3.12% as of Jun. 2015. 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.

Egyptian Chemical Industries Business Description

Address Aswan-Elsaad ELaaly Road, Aswan, EGY
Egyptian Chemical Industries manufactures various chemicals. The company's product portfolio comprises of Ammonium nitrate, Ferro-Silicon alloy, liquid Ammonium Nitrate, oxygen gas, Nitric Acid, Hydrochloric Acid, Silica fume, and Aqua- Ammonia.