ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. PT Sinar Mas Agro Resources & Technology Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 10.72%.
As of today (2026-06-30), PT Sinar Mas Agro Resources & Technology Tbk's WACC % is 6.78%. PT Sinar Mas Agro Resources & Technology Tbk's ROIC % is 8.92% (calculated using TTM income statement data).
PT Sinar Mas Agro Resources & Technology Tbk generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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, PT Sinar Mas Agro Resources & Technology Tbk's WACC % is 6.78%. PT Sinar Mas Agro Resources & Technology Tbk's ROIC % is 8.92% (calculated using TTM income statement data).
PT Sinar Mas Agro Resources & Technology Tbk generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
PT Sinar Mas Agro Resources & Technology Tbk ROIC % Related Terms
PT Sinar Mas Agro Resources & Technology Tbk ROIC % 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.
* 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.
PT Sinar Mas Agro Resources & Technology Tbk ROIC % vs Consumer Packaged Goods Industry
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.
PT Sinar Mas Agro Resources & Technology Tbk (FRA:078) has a ROIC % of 10.72% 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 PT Sinar Mas Agro Resources & Technology Tbk and its competitors.
Is PT Sinar Mas Agro Resources & Technology Tbk's ROIC % too high?
PT Sinar Mas Agro Resources & Technology Tbk's current ROIC % is 10.72%. The Consumer Packaged Goods industry median ROIC % is 5.13. PT Sinar Mas Agro Resources & Technology Tbk's value of 10.72% is 109% above this industry median. Overall, PT Sinar Mas Agro Resources & Technology Tbk has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does PT Sinar Mas Agro Resources & Technology Tbk's ROIC % compare to ADM and BG?
PT Sinar Mas Agro Resources & Technology Tbk's ROIC % of 10.72% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.13. PT Sinar Mas Agro Resources & Technology Tbk's value of 10.72% is 109% 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 Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.13, based on 1,944 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. PT Sinar Mas Agro Resources & Technology Tbk's current ROIC % of 10.72% is 109% 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 PT Sinar Mas Agro Resources & Technology Tbk and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Sinar Mas Agro Resources & Technology Tbk's current ROIC % is 10.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Sinar Mas Agro Resources & Technology Tbk stock overvalued right now?
PT Sinar Mas Agro Resources & Technology Tbk (FRA:078) has a current ROIC % of 10.72%. The stock's GF Value™ is €0.20, compared to a current price of €0.19 — trading 4.2% below its estimated fair value. The current ROIC % is 10.72% and 109% above the Consumer Packaged Goods industry median of 5.13. PT Sinar Mas Agro Resources & Technology Tbk's overall GF Score™ is 84/100 with 3 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 PT Sinar Mas Agro Resources & Technology Tbk (FRA:078), the current ROIC % is 10.72% 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 PT Sinar Mas Agro Resources & Technology Tbk (FRA:078) Overvalued in 2026?
Based on GuruFocus' analysis, PT Sinar Mas Agro Resources & Technology Tbk stock appears to be undervalued.
The current stock price of €0.19 is trading 4.2% below its estimated GF Value™ of €0.20.
Key valuation signals for FRA:078:
ROIC %: 10.72%
GF Value™: €0.20 vs. price of €0.19 (4.2% below fair value)
Industry Position: 109% above the Consumer Packaged Goods median
No single metric tells the full story. See the FRA:078 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Sinar Mas Agro Resources & Technology Tbk Business Description
PT Sinar Mas Agro Resources & Technology Tbk is involved in the business of cultivating and harvesting oil palm trees, extracting fresh fruit bunches into crude palm oil and palm kernel, processing it into value-added products such as cooking oil, margarine, shortening, oleochemicals, and biodiesel. The firm's products include cooking oil, fat, margarine, crude palm oil, palm kernel, cocoa butter substitute, etc. Its scope of activities comprises plantation development, agriculture, trading, refining of plantation products, management services, and research related to the business.
84GF Score
Get the complete analysis for FRA:078
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:078 has been successfully added to your 
