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 Sumber Global Energy Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 6.78%.
As of today (2026-06-27), PT Sumber Global Energy Tbk's WACC % is 8.02%. PT Sumber Global Energy Tbk's ROIC % is 5.96% (calculated using TTM income statement data).
PT Sumber Global Energy Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.
PT Sumber Global Energy Tbk (FRA:SW4) 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, PT Sumber Global Energy Tbk's WACC % is 8.02%. PT Sumber Global Energy Tbk's ROIC % is 5.96% (calculated using TTM income statement data).
PT Sumber Global Energy Tbk 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.
PT Sumber Global Energy Tbk ROIC % Related Terms
PT Sumber Global Energy 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.
PT Sumber Global Energy Tbk ROIC % Competitor Comparison
For the Thermal Coal subindustry, PT Sumber Global Energy Tbk'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.
PT Sumber Global Energy Tbk ROIC % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, PT Sumber Global Energy Tbk's ROIC % distribution charts can be found below:
* The bar in red indicates where PT Sumber Global Energy Tbk's ROIC % falls into.
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 Sumber Global Energy Tbk (FRA:SW4) has a ROIC % of 6.78% 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 Sumber Global Energy Tbk and its competitors.
Is PT Sumber Global Energy Tbk's ROIC % too high?
PT Sumber Global Energy Tbk's current ROIC % is 6.78%. Overall, PT Sumber Global Energy Tbk has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does PT Sumber Global Energy Tbk's ROIC % compare to competitors?
PT Sumber Global Energy Tbk's ROIC % of 6.78% can be compared against companies in the Other Energy Sources industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Other Energy Sources company?
A good ROIC % depends on the Other Energy Sources industry context. 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 PT Sumber Global Energy Tbk and its competitors. PT Sumber Global Energy Tbk's current ROIC % is 6.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Sumber Global Energy Tbk stock overvalued right now?
PT Sumber Global Energy Tbk (FRA:SW4) has a current ROIC % of 6.78%. The current ROIC % is 6.78%. PT Sumber Global Energy Tbk's overall GF Score™ is 74/100 with 7 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 Sumber Global Energy Tbk (FRA:SW4), the current ROIC % is 6.78% 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.
PT Sumber Global Energy Tbk is a wholesale trader of solid, liquid, and gaseous energies. Its main business currently is coal trading, mostly to the export market (China, India, Vietnam, Malaysia) as well as the local market. Along with its subsidiaries, it is also engaged in trading biomass products (such as wood pellets, palm kernel shells, RBD palm olein, etc.), supplies nickel, limestone, and hydrogen peroxide, and offers a full range of international commodity freight services, including sourcing, marketing, trading, finance, and logistics. The Group's operating segments are: Coal, Nickel, Petroleum coke, Oil palm product, Sand and Limestone, Contractor, and Fuel. The majority of its revenue is generated from the Coal segment.
74GF Score
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