ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Gamuda Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2026 was 4.52%.
As of today (2026-06-29), Gamuda Bhd's WACC % is 6.30%. Gamuda Bhd's ROIC % is 4.12% (calculated using TTM income statement data).
Gamuda Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Gamuda Bhd (OTCPK:GMUAF) 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, Gamuda Bhd's WACC % is 6.30%. Gamuda Bhd's ROIC % is 4.12% (calculated using TTM income statement data).
Gamuda Bhd 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.
Gamuda Bhd ROIC % Related Terms
Gamuda Bhd ROIC % Historical Data
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The historical data trend for Gamuda Bhd'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 Engineering & Construction subindustry, Gamuda Bhd'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.
Gamuda Bhd ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Gamuda Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Gamuda Bhd's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Apr. 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.
Gamuda Bhd (GMUAF) has a ROIC % of 4.52% as of Apr. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Gamuda Bhd and its competitors.
Is Gamuda Bhd's ROIC % too high?
Gamuda Bhd's current ROIC % is 4.52%. The Construction industry median ROIC % is 4.66. Gamuda Bhd's value of 4.52% is 3% below this industry median. Overall, Gamuda Bhd has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.
How does Gamuda Bhd's ROIC % compare to PWR and FIX?
Gamuda Bhd's ROIC % of 4.52% can be compared against companies in the Construction industry. The industry median ROIC % is 4.66. Gamuda Bhd's value of 4.52% is 3% below 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 Construction company?
The median ROIC % among Construction companies is 4.66, based on 1,750 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. Gamuda Bhd's current ROIC % of 4.52% is 3% below 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 Gamuda Bhd and its competitors. For the Construction industry, the median ROIC % is 4.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gamuda Bhd's current ROIC % is 4.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gamuda Bhd stock overvalued right now?
Gamuda Bhd (GMUAF) has a current ROIC % of 4.52%. The stock's GF Value™ is $0.48, compared to a current price of $0.41 — trading 14.9% below its estimated fair value. The current ROIC % is 4.52% and 3% below the Construction industry median of 4.66. Gamuda Bhd's overall GF Score™ is 87/100 with 8 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 Gamuda Bhd (GMUAF), the current ROIC % is 4.52% as of Apr. 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 Gamuda Bhd (GMUAF) Overvalued in 2026?
Based on GuruFocus' analysis, Gamuda Bhd stock appears to be undervalued.
The current stock price of $0.41 is trading 14.9% below its estimated GF Value™ of $0.48.
Key valuation signals for GMUAF:
ROIC %: 4.52%
GF Value™: $0.48 vs. price of $0.41 (14.9% below fair value)
Industry Position: 3% below the Construction median
No single metric tells the full story. See the GMUAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gamuda Bhd is principally into investment holding and civil engineering construction. The company's business activities include: Engineering and Construction, Property Development, Renewable Energy, and Technology and Digitalisation. Its reportable segments are: (i) Engineering and construction-the construction of highways and bridges, airfield facilities, railway, tunnel, water treatment plants, dams, general and trading services related to construction activities and the management of water supply; and (ii) Property development and club operations - the development of residential and commercial properties and club operations. The majority of the revenue is generated from the Engineering and Construction segment.
87GF Score
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