ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Alarko Holding AS's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -0.18%.
As of today (2026-06-28), Alarko Holding AS's WACC % is 11.56%. Alarko Holding AS's ROIC % is -0.80% (calculated using TTM income statement data).
Alarko Holding AS earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Alarko Holding AS (IST:ALARK) 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, Alarko Holding AS's WACC % is 11.56%. Alarko Holding AS's ROIC % is -0.80% (calculated using TTM income statement data).
Alarko Holding AS 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.
Alarko Holding AS ROIC % Related Terms
Alarko Holding AS ROIC % Historical Data
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The historical data trend for Alarko Holding AS'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 Conglomerates subindustry, Alarko Holding AS'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.
Alarko Holding AS ROIC % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Alarko Holding AS's ROIC % distribution charts can be found below:
* The bar in red indicates where Alarko Holding AS'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.
Alarko Holding AS (IST:ALARK) has a ROIC % of -0.18% 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 Alarko Holding AS and its competitors.
Is Alarko Holding AS's ROIC % too high?
Alarko Holding AS's current ROIC % is -0.18%. Overall, Alarko Holding AS has a GF Score™ of 43/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Alarko Holding AS's ROIC % compare to HON and MMM?
Alarko Holding AS's ROIC % of -0.18% can be compared against companies in the Conglomerates industry. The industry median ROIC % is 2.78. 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 Conglomerates company?
The median ROIC % among Conglomerates companies is 2.78, based on 552 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. 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 Alarko Holding AS and its competitors. For the Conglomerates industry, the median ROIC % is 2.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarko Holding AS's current ROIC % is -0.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alarko Holding AS stock overvalued right now?
Based on GuruFocus' analysis, Alarko Holding AS (IST:ALARK) is currently considered Modestly Overvalued. The stock's GF Value™ is ₺87.49, compared to a current price of ₺105.20 — trading 20.2% above its estimated fair value. The current ROIC % is -0.18%. Alarko Holding AS's overall GF Score™ is 43/100 with 11 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 Alarko Holding AS (IST:ALARK), the current ROIC % is -0.18% 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 Alarko Holding AS (IST:ALARK) Overvalued in 2026?
Based on GuruFocus' analysis, Alarko Holding AS stock appears to be overvalued.
The current stock price of ₺105.20 is trading 20.2% above its estimated GF Value™ of ₺87.49.
GuruFocus considers Alarko Holding AS to be Modestly Overvalued.
Key valuation signals for IST:ALARK:
ROIC %: -0.18%
GF Value™: ₺87.49 vs. price of ₺105.20 (20.2% above fair value)
No single metric tells the full story. See the IST:ALARK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alarko Holding AS is a holding company consisting of companies that operate in contracting, construction, land development, industry, trade, tourism, and energy. The company's segments include holding, tourism, industry and merchandising, energy, contracting/land development. Its contracting group operates as a general contractor in Turkey and abroad and carries out airport and rail system projects, large scale infrastructure works, constructions of industrial plants, hospitals, and other such projects. The majority of the revenue is derived from the contracting and land development segment.
43GF Score
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