ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Tekfen Holding AS's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.56%.
As of today (2026-06-30), Tekfen Holding AS's WACC % is 9.99%. Tekfen Holding AS's ROIC % is -1.42% (calculated using TTM income statement data).
Tekfen Holding AS earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Tekfen Holding AS (IST:TKFEN) 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, Tekfen Holding AS's WACC % is 9.99%. Tekfen Holding AS's ROIC % is -1.42% (calculated using TTM income statement data).
Tekfen 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.
Tekfen Holding AS ROIC % Related Terms
Tekfen Holding AS ROIC % Historical Data
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The historical data trend for Tekfen 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 Agricultural Inputs subindustry, Tekfen 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.
Tekfen Holding AS ROIC % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Tekfen Holding AS's ROIC % distribution charts can be found below:
* The bar in red indicates where Tekfen 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.
Tekfen Holding AS (IST:TKFEN) has a ROIC % of 1.56% 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 Tekfen Holding AS and its competitors.
Is Tekfen Holding AS's ROIC % too high?
Tekfen Holding AS's current ROIC % is 1.56%. The Agriculture industry median ROIC % is 5.48. Tekfen Holding AS's value of 1.56% is 71.5% below this industry median. Overall, Tekfen Holding AS has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tekfen Holding AS's ROIC % compare to CTVA and CF?
Tekfen Holding AS's ROIC % of 1.56% can be compared against companies in the Agriculture industry. The industry median ROIC % is 5.48. Tekfen Holding AS's value of 1.56% is 71.5% 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 an Agriculture company?
The median ROIC % among Agriculture companies is 5.48, based on 257 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. Tekfen Holding AS's current ROIC % of 1.56% is 71.5% 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 Tekfen Holding AS and its competitors. For the Agriculture industry, the median ROIC % is 5.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tekfen Holding AS's current ROIC % is 1.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tekfen Holding AS stock overvalued right now?
Based on GuruFocus' analysis, Tekfen Holding AS (IST:TKFEN) is currently considered Significantly Overvalued. The stock's GF Value™ is ₺50.04, compared to a current price of ₺141.40 — trading 182.6% above its estimated fair value. The current ROIC % is 1.56% and 71.5% below the Agriculture industry median of 5.48. Tekfen Holding AS's overall GF Score™ is 44/100 with 10 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 Tekfen Holding AS (IST:TKFEN), the current ROIC % is 1.56% 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 Tekfen Holding AS (IST:TKFEN) Overvalued in 2026?
Based on GuruFocus' analysis, Tekfen Holding AS stock appears to be overvalued.
The current stock price of ₺141.40 is trading 182.6% above its estimated GF Value™ of ₺50.04.
GuruFocus considers Tekfen Holding AS to be Significantly Overvalued.
Key valuation signals for IST:TKFEN:
ROIC %: 1.56%
GF Value™: ₺50.04 vs. price of ₺141.40 (182.6% above fair value)
Industry Position: 71.5% below the Agriculture median
No single metric tells the full story. See the IST:TKFEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tekfen Holding AS is a conglomerate that operates in below business lines: Engineering and Contracting; Agricultural Industry; and Investment. It generates maximum revenue from the Agricultural Industry segment. The Agricultural Industry segment is engaged in the production and sale of mineral fertilizers as well as special water soluble fertilizers and organic fertilizers. It also manufactures bags used in fertilizer packaging in its facility. Additionally, it generates biogas through the fermentation of organic wastes and electricity from biogas and also produces solid and liquid organic fertilizers from wastes that have completed the gasification process. Geographically, the company generates maximum revenue from Turkey and the rest from the CIS, the Middle East, and other regions.
44GF Score
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