ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kazakhtelecom JSC's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2025 was 5.26%.
As of today (2026-07-02), Kazakhtelecom JSC's WACC % is 10.45%. Kazakhtelecom JSC's ROIC % is 3.63% (calculated using TTM income statement data).
Kazakhtelecom JSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Kazakhtelecom JSC (FRA:KZTA) 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, Kazakhtelecom JSC's WACC % is 10.45%. Kazakhtelecom JSC's ROIC % is 3.63% (calculated using TTM income statement data).
Kazakhtelecom JSC 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.
Kazakhtelecom JSC ROIC % Related Terms
Kazakhtelecom JSC ROIC % Historical Data
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The historical data trend for Kazakhtelecom JSC'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 Telecom Services subindustry, Kazakhtelecom JSC'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.
Kazakhtelecom JSC ROIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Kazakhtelecom JSC's ROIC % distribution charts can be found below:
* The bar in red indicates where Kazakhtelecom JSC's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Sep. 2025) 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.
Kazakhtelecom JSC (FRA:KZTA) has a ROIC % of 5.26% as of Sep. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Kazakhtelecom JSC and its competitors.
Is Kazakhtelecom JSC's ROIC % too high?
Kazakhtelecom JSC's current ROIC % is 5.26%. The Telecommunication Services industry median ROIC % is 4.53. Kazakhtelecom JSC's value of 5.26% is 16.2% above this industry median. Overall, Kazakhtelecom JSC has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kazakhtelecom JSC's ROIC % compare to TMUS and VZ?
Kazakhtelecom JSC's ROIC % of 5.26% can be compared against companies in the Telecommunication Services industry. The industry median ROIC % is 4.53. Kazakhtelecom JSC's value of 5.26% is 16.2% 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 Telecommunication Services company?
The median ROIC % among Telecommunication Services companies is 4.53, based on 362 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. Kazakhtelecom JSC's current ROIC % of 5.26% is 16.2% 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 Kazakhtelecom JSC and its competitors. For the Telecommunication Services industry, the median ROIC % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kazakhtelecom JSC's current ROIC % is 5.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kazakhtelecom JSC stock overvalued right now?
Based on GuruFocus' analysis, Kazakhtelecom JSC (FRA:KZTA) is currently considered Modestly Undervalued. The stock's GF Value™ is €4.33, compared to a current price of €3.10 — trading 28.4% below its estimated fair value. The current ROIC % is 5.26% and 16.2% above the Telecommunication Services industry median of 4.53. Kazakhtelecom JSC's overall GF Score™ is 71/100 with 13 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 Kazakhtelecom JSC (FRA:KZTA), the current ROIC % is 5.26% as of Sep. 2025. 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 Kazakhtelecom JSC (FRA:KZTA) Overvalued in 2026?
Based on GuruFocus' analysis, Kazakhtelecom JSC stock appears to be undervalued.
The current stock price of €3.10 is trading 28.4% below its estimated GF Value™ of €4.33.
GuruFocus considers Kazakhtelecom JSC to be Modestly Undervalued.
Key valuation signals for FRA:KZTA:
ROIC %: 5.26%
GF Value™: €4.33 vs. price of €3.10 (28.4% below fair value)
Industry Position: 16.2% above the Telecommunication Services median
No single metric tells the full story. See the FRA:KZTA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kazakhtelecom JSC is engaged in providing telecommunication services. The company offers fixed line and mobile telecommunication services which include local, long-distance intercity, and international telecommunication services including CIS and non-CIS countries. In addition, it also provides rent of channels, data transfer services, and wireless communication services. The group operating segments include Fixed lines; Mobile telecommunication services in GSM and LTE standards and others. It generates maximum revenue from Mobile telecommunication services in GSM and LTE standards segment.
71GF Score
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