ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. PT Clipan Finance Indonesia Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 6.03%.
As of today (2026-07-04), PT Clipan Finance Indonesia Tbk's WACC % is 2.71%. PT Clipan Finance Indonesia Tbk's ROIC % is 5.95% (calculated using TTM income statement data).
PT Clipan Finance Indonesia Tbk 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.
PT Clipan Finance Indonesia Tbk (ISX:CFIN) 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, PT Clipan Finance Indonesia Tbk's WACC % is 2.71%. PT Clipan Finance Indonesia Tbk's ROIC % is 5.95% (calculated using TTM income statement data).
PT Clipan Finance Indonesia Tbk 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.
PT Clipan Finance Indonesia Tbk ROIC % Related Terms
PT Clipan Finance Indonesia Tbk ROIC % Historical Data
* 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 Credit Services subindustry, PT Clipan Finance Indonesia Tbk'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.
PT Clipan Finance Indonesia Tbk ROIC % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, PT Clipan Finance Indonesia Tbk's ROIC % distribution charts can be found below:
* The bar in red indicates where PT Clipan Finance Indonesia Tbk'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.
PT Clipan Finance Indonesia Tbk (ISX:CFIN) has a ROIC % of 6.03% 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 PT Clipan Finance Indonesia Tbk and its competitors.
Is PT Clipan Finance Indonesia Tbk's ROIC % too high?
PT Clipan Finance Indonesia Tbk's current ROIC % is 6.03%. The Credit Services industry median ROIC % is 1.98. PT Clipan Finance Indonesia Tbk's value of 6.03% is 204.5% above this industry median. Overall, PT Clipan Finance Indonesia Tbk has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does PT Clipan Finance Indonesia Tbk's ROIC % compare to V and MA?
PT Clipan Finance Indonesia Tbk's ROIC % of 6.03% can be compared against companies in the Credit Services industry. The industry median ROIC % is 1.98. PT Clipan Finance Indonesia Tbk's value of 6.03% is 204.5% 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 Credit Services company?
The median ROIC % among Credit Services companies is 1.98, based on 417 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. PT Clipan Finance Indonesia Tbk's current ROIC % of 6.03% is 204.5% 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 PT Clipan Finance Indonesia Tbk and its competitors. For the Credit Services industry, the median ROIC % is 1.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Clipan Finance Indonesia Tbk's current ROIC % is 6.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Clipan Finance Indonesia Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Clipan Finance Indonesia Tbk (ISX:CFIN) is currently considered Fairly Valued. The stock's GF Value™ is Rp347.38, compared to a current price of Rp322.00 — trading 7.3% below its estimated fair value. The current ROIC % is 6.03% and 204.5% above the Credit Services industry median of 1.98. PT Clipan Finance Indonesia Tbk's overall GF Score™ is 72/100 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 PT Clipan Finance Indonesia Tbk (ISX:CFIN), the current ROIC % is 6.03% 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 PT Clipan Finance Indonesia Tbk (ISX:CFIN) Overvalued in 2026?
Based on GuruFocus' analysis, PT Clipan Finance Indonesia Tbk stock appears to be undervalued.
The current stock price of Rp322.00 is trading 7.3% below its estimated GF Value™ of Rp347.38.
GuruFocus considers PT Clipan Finance Indonesia Tbk to be Fairly Valued.
Key valuation signals for ISX:CFIN:
ROIC %: 6.03%
GF Value™: Rp347.38 vs. price of Rp322.00 (7.3% below fair value)
Industry Position: 204.5% above the Credit Services median
No single metric tells the full story. See the ISX:CFIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Clipan Finance Indonesia Tbk Business Description
PT Clipan Finance Indonesia Tbk is an Indonesian company engaged in providing financing solutions for new cars, used cars, heavy equipment, and multipurpose vehicles. Its operating segments are: Factoring, Sale and leaseback, Finance lease, and Consumer financing. The majority of its revenue is generated from the Consumer financing segment, which includes income generated from services like investment financing, working capital financing, and multi-purpose financing.
72GF Score
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