Kings Entertainment Group (FRA:L12) ROIC %: -30.10% (As of Sep. 2023)


What is Kings Entertainment Group ROIC %?

Kings Entertainment Group FRA:L12 ROIC % is -30.10% as of Sep. 2023.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kings Entertainment Group's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was -30.10%.

As of today (2026-07-13), Kings Entertainment Group's WACC % is 0.00%. Kings Entertainment Group's ROIC % is 0.00% (calculated using TTM income statement data). Kings Entertainment Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Kings Entertainment Group  (FRA:L12) 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, Kings Entertainment Group's WACC % is 0.00%. Kings Entertainment Group's ROIC % is 0.00% (calculated using TTM income statement data). Kings Entertainment Group 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.

Kings Entertainment Group ROIC % Related Terms

Kings Entertainment Group ROIC % Historical Data

* Premium members only.

The historical data trend for Kings Entertainment Group'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.

Kings Entertainment Group ROIC % Chart

Kings Entertainment Group Annual Data
Trend Dec20 Dec21 Dec22
ROIC %
459.66 32.24 -1,696.73

Kings Entertainment Group Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only -452.44 -499.55 -465.21 -334.34 -30.10

FRA:L12 vs DKNG, CHDN, LNW: ROIC % Comparison

For the Gambling subindustry, Kings Entertainment Group'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.

Kings Entertainment Group ROIC % vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Kings Entertainment Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Kings Entertainment Group's ROIC % falls into.


Kings Entertainment Group ROIC % Calculation

Kings Entertainment Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROIC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=-6.49 * ( 1 - 0% )/( (0.23 + 0.535)/ 2 )
=-6.49/0.3825
=-1,696.73 %

where

Invested Capital(A: Dec. 2021 )
=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))
=8.307 - 2.451 - ( 6.394 - max(0, 2.578 - 8.204+6.394))
=0.23

Invested Capital(A: Dec. 2022 )
=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))
=4.037 - 2.42 - ( 1.125 - max(0, 2.541 - 3.623+1.125))
=0.535

Kings Entertainment Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

ROIC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=-1.76 * ( 1 - 49.9% )/( (0.537 + 5.321)/ 2 )
=-0.88176/2.929
=-30.10 %

where

Invested Capital(Q: Jun. 2023 )
=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))
=3.463 - 1.697 - ( 1.597 - max(0, 1.834 - 3.063+1.597))
=0.537

Invested Capital(Q: Sep. 2023 )
=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))
=9.538 - 3.659 - ( 1.044 - max(0, 3.73 - 4.288+1.044))
=5.321

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) 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 -30.10% mean?
Kings Entertainment Group (FRA:L12) has a ROIC % of -30.10% as of Sep. 2023. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Kings Entertainment Group and its competitors.
Is Kings Entertainment Group's ROIC % too high?
Kings Entertainment Group's current ROIC % is -30.10%.
How does Kings Entertainment Group's ROIC % compare to DKNG and CHDN?
Kings Entertainment Group's ROIC % of -30.10% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.77. 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 Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.77, based on 833 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. 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 Kings Entertainment Group and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kings Entertainment Group's current ROIC % is -30.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kings Entertainment Group stock overvalued right now?
Kings Entertainment Group (FRA:L12) has a current ROIC % of -30.10%. The current ROIC % is -30.10%. 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 Kings Entertainment Group (FRA:L12), the current ROIC % is -30.10% as of Sep. 2023. 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.

Kings Entertainment Group Business Description

Address 1060 - 1055 West Georgia Street, Vancouver, BC, CAN, V6E 2E9
Kings Entertainment Group Inc is a business-to-consumer service provider that allows users to participate in lotteries and casino-style online games throughout the world. The company operates through multiple established brands and websites, which include www.wintrillions.com, www.trillionaire.com, and www.LottoKings.com. In addition to the lottery services, it offers a connected experience that enables users to play and switch with ease between scratch cards and casino games. The company has only one reportable segment, which is lottery procurement and online casino, and scratchcard. Geographically, it derives revenue from Mexico, Brazil, other Latin American countries, and other regions.