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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Pengo Holdings Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.74%.
As of today (2026-08-18), Pengo Holdings Group's WACC % is 3.59%. Pengo Holdings Group's ROIC % is -7.51% (calculated using TTM income statement data).
Pengo Holdings Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Pengo Holdings Group (HKSE:01865) 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, Pengo Holdings Group's WACC % is 3.59%. Pengo Holdings Group's ROIC % is -7.51% (calculated using TTM income statement data).
Pengo Holdings 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.
* 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, Pengo Holdings 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.
Pengo Holdings Group ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Pengo Holdings Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Pengo Holdings Group's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Pengo Holdings Group (HKSE:01865) has a ROIC % of 0.74% 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 Pengo Holdings Group and its competitors.
Is Pengo Holdings Group's ROIC % too high?
Pengo Holdings Group's current ROIC % is 0.74%. The Construction industry median ROIC % is 4.74. Pengo Holdings Group's value of 0.74% is 84.4% below this industry median. Overall, Pengo Holdings Group has a GF Score™ of 32/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pengo Holdings Group's ROIC % compare to PWR and FIX?
Pengo Holdings Group's ROIC % of 0.74% can be compared against companies in the Construction industry. The industry median ROIC % is 4.74. Pengo Holdings Group's value of 0.74% is 84.4% 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 4.74, based on 1,763 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. Pengo Holdings Group's current ROIC % of 0.74% is 84.4% 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 Pengo Holdings Group and its competitors. For the Construction industry, the median ROIC % is 4.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pengo Holdings Group's current ROIC % is 0.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pengo Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, Pengo Holdings Group (HKSE:01865) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.11, compared to a current price of HK$0.41 — trading 272.7% above its estimated fair value. The current ROIC % is 0.74% and 84.4% below the Construction industry median of 4.74. Pengo Holdings Group's overall GF Score™ is 32/100 with 5 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 Pengo Holdings Group (HKSE:01865), the current ROIC % is 0.74% 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.
Is Pengo Holdings Group (HKSE:01865) Overvalued in 2026?
Based on GuruFocus' analysis, Pengo Holdings Group stock appears to be overvalued.
The current stock price of HK$0.41 is trading 272.7% above its estimated GF Value™ of HK$0.11.
GuruFocus considers Pengo Holdings Group to be Significantly Overvalued.
Key valuation signals for HKSE:01865:
ROIC %: 0.74%
GF Value™: HK$0.11 vs. price of HK$0.41 (272.7% above fair value)
Industry Position: 84.4% below the Construction median
No single metric tells the full story. See the HKSE:01865 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pengo Holdings Group Ltd is an investment holding company. It is engaged in the provision of infrastructural pipeline construction and related engineering services mainly to private and public utilities companies in the gas, water, telecommunications, and power industries, trading of building materials, brokerage, placing and margin financing services. The company's operating segment includes Construction services, Brokerage, placing and margin financing services; and Trading of building materials. It generates maximum revenue from the Construction contracts segment. Geographically, it derives a majority of its revenue from Singapore.
32GF Score
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