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 Indonesia Fibreboard Industry Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 12.28%.
As of today (2026-06-27), PT Indonesia Fibreboard Industry Tbk's WACC % is 3.64%. PT Indonesia Fibreboard Industry Tbk's ROIC % is 10.48% (calculated using TTM income statement data).
PT Indonesia Fibreboard Industry 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 Indonesia Fibreboard Industry Tbk (ISX:IFII) 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 Indonesia Fibreboard Industry Tbk's WACC % is 3.64%. PT Indonesia Fibreboard Industry Tbk's ROIC % is 10.48% (calculated using TTM income statement data).
PT Indonesia Fibreboard Industry 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 Indonesia Fibreboard Industry Tbk ROIC % Related Terms
PT Indonesia Fibreboard Industry 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 Lumber & Wood Production subindustry, PT Indonesia Fibreboard Industry 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 Indonesia Fibreboard Industry Tbk ROIC % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, PT Indonesia Fibreboard Industry Tbk's ROIC % distribution charts can be found below:
* The bar in red indicates where PT Indonesia Fibreboard Industry 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 Indonesia Fibreboard Industry Tbk (ISX:IFII) has a ROIC % of 12.28% 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 Indonesia Fibreboard Industry Tbk and its competitors.
Is PT Indonesia Fibreboard Industry Tbk's ROIC % too high?
PT Indonesia Fibreboard Industry Tbk's current ROIC % is 12.28%. The Forest Products industry median ROIC % is 1.55. PT Indonesia Fibreboard Industry Tbk's value of 12.28% is 692.3% above this industry median. Overall, PT Indonesia Fibreboard Industry Tbk has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does PT Indonesia Fibreboard Industry Tbk's ROIC % compare to SSD and UFPI?
PT Indonesia Fibreboard Industry Tbk's ROIC % of 12.28% can be compared against companies in the Forest Products industry. The industry median ROIC % is 1.55. PT Indonesia Fibreboard Industry Tbk's value of 12.28% is 692.3% 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 Forest Products company?
The median ROIC % among Forest Products companies is 1.55, based on 277 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 Indonesia Fibreboard Industry Tbk's current ROIC % of 12.28% is 692.3% 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 Indonesia Fibreboard Industry Tbk and its competitors. For the Forest Products industry, the median ROIC % is 1.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Indonesia Fibreboard Industry Tbk's current ROIC % is 12.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Indonesia Fibreboard Industry Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Indonesia Fibreboard Industry Tbk (ISX:IFII) is currently considered Fairly Valued. The stock's GF Value™ is Rp211.08, compared to a current price of Rp214.00 — trading 1.4% above its estimated fair value. The current ROIC % is 12.28% and 692.3% above the Forest Products industry median of 1.55. PT Indonesia Fibreboard Industry Tbk's overall GF Score™ is 89/100 with 2 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 Indonesia Fibreboard Industry Tbk (ISX:IFII), the current ROIC % is 12.28% 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 Indonesia Fibreboard Industry Tbk (ISX:IFII) Overvalued in 2026?
Based on GuruFocus' analysis, PT Indonesia Fibreboard Industry Tbk stock appears to be overvalued.
The current stock price of Rp214.00 is trading 1.4% above its estimated GF Value™ of Rp211.08.
GuruFocus considers PT Indonesia Fibreboard Industry Tbk to be Fairly Valued.
Key valuation signals for ISX:IFII:
ROIC %: 12.28%
GF Value™: Rp211.08 vs. price of Rp214.00 (1.4% above fair value)
Industry Position: 692.3% above the Forest Products median
No single metric tells the full story. See the ISX:IFII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Indonesia Fibreboard Industry Tbk Business Description
PT Indonesia Fibreboard Industry Tbk is a wood processing company developing a variety of processed wood such as veneer and plywood. Its product portfolio includes High-Density Fireboard, Medium Density Fireboard, Low-Density Fireboard, High Moisture Resistance, Plywood, Plywood MDF, MDF Laminate Paper, and Veneer. Its segments include Japan MDF, Regular MDF, Middle East MDF, and Others. A vast majority of its revenues are derived from Middle East MDF segment.
89GF Score
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