ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Lam Soon (Hong Kong)'s annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 23.57%.
As of today (2026-06-30), Lam Soon (Hong Kong)'s WACC % is 7.00%. Lam Soon (Hong Kong)'s ROIC % is 18.67% (calculated using TTM income statement data).
Lam Soon (Hong Kong) 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.
Lam Soon (Hong Kong) (FRA:LS9) 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, Lam Soon (Hong Kong)'s WACC % is 7.00%. Lam Soon (Hong Kong)'s ROIC % is 18.67% (calculated using TTM income statement data).
Lam Soon (Hong Kong) 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.
* 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 Packaged Foods subindustry, Lam Soon (Hong Kong)'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.
Lam Soon (Hong Kong) ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lam Soon (Hong Kong)'s ROIC % distribution charts can be found below:
* The bar in red indicates where Lam Soon (Hong Kong)'s ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 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.
Lam Soon (Hong Kong) (FRA:LS9) has a ROIC % of 23.57% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Lam Soon (Hong Kong) and its competitors.
Is Lam Soon (Hong Kong)'s ROIC % too high?
Lam Soon (Hong Kong)'s current ROIC % is 23.57%. The Consumer Packaged Goods industry median ROIC % is 5.13. Lam Soon (Hong Kong)'s value of 23.57% is 359.5% above this industry median. Overall, Lam Soon (Hong Kong) has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Lam Soon (Hong Kong)'s ROIC % compare to KHC and GIS?
Lam Soon (Hong Kong)'s ROIC % of 23.57% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.13. Lam Soon (Hong Kong)'s value of 23.57% is 359.5% 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. Lam Soon (Hong Kong)'s current ROIC % of 23.57% is 359.5% 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 Lam Soon (Hong Kong) 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. Lam Soon (Hong Kong)'s current ROIC % is 23.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lam Soon (Hong Kong) stock overvalued right now?
Lam Soon (Hong Kong) (FRA:LS9) has a current ROIC % of 23.57%. The stock's GF Value™ is €0.88, compared to a current price of €1.19 — trading 35.2% above its estimated fair value. The current ROIC % is 23.57% and 359.5% above the Consumer Packaged Goods industry median of 5.13. Lam Soon (Hong Kong)'s overall GF Score™ is 69/100 with 2 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 Lam Soon (Hong Kong) (FRA:LS9), the current ROIC % is 23.57% as of Dec. 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 Lam Soon (Hong Kong) (FRA:LS9) Overvalued in 2026?
Based on GuruFocus' analysis, Lam Soon (Hong Kong) stock appears to be overvalued.
The current stock price of €1.19 is trading 35.2% above its estimated GF Value™ of €0.88.
Key valuation signals for FRA:LS9:
ROIC %: 23.57%
GF Value™: €0.88 vs. price of €1.19 (35.2% above fair value)
Industry Position: 359.5% above the Consumer Packaged Goods median
No single metric tells the full story. See the FRA:LS9 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lam Soon (Hong Kong) Ltd is an investment holding company engaged in the manufacturing of food and detergent products. The company's business segments are based on its activities and include Food and Home Care. The Food segment involves the manufacturing and distribution of food products such as flour, edible oils, and vegetable fats. The Home Care segment covers the manufacturing and distribution of household cleaning products, including liquid dishwashing detergent, laundry powder, liquid laundry detergent, fabric softener, floor cleaner, and industrial marble cleanser. The majority of its revenue is generated from the Food segment activities. It operates in Hong Kong and international markets, with the majority of its revenue derived from Mainland China.
69GF Score
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