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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 %. Swang Chai Chuan's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 12.08%.
As of today (2026-08-28), Swang Chai Chuan's WACC % is 5.40%. Swang Chai Chuan's ROIC % is 12.83% (calculated using TTM income statement data).
Swang Chai Chuan 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.
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, Swang Chai Chuan's WACC % is 5.40%. Swang Chai Chuan's ROIC % is 12.83% (calculated using TTM income statement data).
Swang Chai Chuan 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.
Swang Chai Chuan ROIC % Related Terms
Swang Chai Chuan ROIC % Historical Data
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The historical data trend for Swang Chai Chuan'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 Grocery Stores subindustry, Swang Chai Chuan'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.
Swang Chai Chuan ROIC % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Swang Chai Chuan's ROIC % distribution charts can be found below:
* The bar in red indicates where Swang Chai Chuan'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.
Swang Chai Chuan (HKSE:02321) has a ROIC % of 12.08% 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 Swang Chai Chuan and its competitors.
Is Swang Chai Chuan's ROIC % too high?
Swang Chai Chuan's current ROIC % is 12.08%. The Retail - Defensive industry median ROIC % is 5.90. Swang Chai Chuan's value of 12.08% is 104.9% above this industry median. Overall, Swang Chai Chuan has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Swang Chai Chuan's ROIC % compare to KR?
Swang Chai Chuan's ROIC % of 12.08% can be compared against companies in the Retail - Defensive industry. The industry median ROIC % is 5.90. Swang Chai Chuan's value of 12.08% is 104.9% 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 Retail - Defensive company?
The median ROIC % among Retail - Defensive companies is 5.90, based on 306 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. Swang Chai Chuan's current ROIC % of 12.08% is 104.9% 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 Swang Chai Chuan and its competitors. For the Retail - Defensive industry, the median ROIC % is 5.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Swang Chai Chuan's current ROIC % is 12.08%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Swang Chai Chuan stock overvalued right now?
Based on GuruFocus' analysis, Swang Chai Chuan (HKSE:02321) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.44, compared to a current price of HK$0.49 — trading 11.4% above its estimated fair value. The current ROIC % is 12.08% and 104.9% above the Retail - Defensive industry median of 5.90. Swang Chai Chuan's overall GF Score™ is 66/100 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 Swang Chai Chuan (HKSE:02321), the current ROIC % is 12.08% 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 Swang Chai Chuan (HKSE:02321) Overvalued in 2026?
Based on GuruFocus' analysis, Swang Chai Chuan stock appears to be overvalued.
The current stock price of HK$0.49 is trading 11.4% above its estimated GF Value™ of HK$0.44.
GuruFocus considers Swang Chai Chuan to be Modestly Overvalued.
Key valuation signals for HKSE:02321:
ROIC %: 12.08%
GF Value™: HK$0.44 vs. price of HK$0.49 (11.4% above fair value)
Industry Position: 104.9% above the Retail - Defensive median
No single metric tells the full story. See the HKSE:02321 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Swang Chai Chuan Ltd is an investment holding company and its subsidiaries are principally engaged in distribution and sales of food and beverages (F&B) and provision of logistics, warehousing and other services in Malaysia. The company has one reportable segment. The company's brands are CED, Mega Food, Mega Fresh, Sayangku, and Snow Cat.
66GF Score
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