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 Indo-Rama Synthetics Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -1.92%.
As of today (2026-07-02), PT Indo-Rama Synthetics Tbk's WACC % is 6.69%. PT Indo-Rama Synthetics Tbk's ROIC % is -1.43% (calculated using TTM income statement data).
PT Indo-Rama Synthetics Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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 Indo-Rama Synthetics Tbk's WACC % is 6.69%. PT Indo-Rama Synthetics Tbk's ROIC % is -1.43% (calculated using TTM income statement data).
PT Indo-Rama Synthetics Tbk 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.
PT Indo-Rama Synthetics Tbk ROIC % Related Terms
PT Indo-Rama Synthetics 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 Textile Manufacturing subindustry, PT Indo-Rama Synthetics 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 Indo-Rama Synthetics Tbk ROIC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, PT Indo-Rama Synthetics Tbk's ROIC % distribution charts can be found below:
* The bar in red indicates where PT Indo-Rama Synthetics 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 Indo-Rama Synthetics Tbk (ISX:INDR) has a ROIC % of -1.92% 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 Indo-Rama Synthetics Tbk and its competitors.
Is PT Indo-Rama Synthetics Tbk's ROIC % too high?
PT Indo-Rama Synthetics Tbk's current ROIC % is -1.92%. Overall, PT Indo-Rama Synthetics Tbk has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does PT Indo-Rama Synthetics Tbk's ROIC % compare to competitors?
PT Indo-Rama Synthetics Tbk's ROIC % of -1.92% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROIC % is 2.91. 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 Manufacturing - Apparel & Accessories company?
The median ROIC % among Manufacturing - Apparel & Accessories companies is 2.91, based on 1,045 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 PT Indo-Rama Synthetics Tbk and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROIC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Indo-Rama Synthetics Tbk's current ROIC % is -1.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Indo-Rama Synthetics Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Indo-Rama Synthetics Tbk (ISX:INDR) is currently considered Possible Value Trap. The stock's GF Value™ is Rp3,028.22, compared to a current price of Rp1,920.00 — trading 36.6% below its estimated fair value. The current ROIC % is -1.92%. PT Indo-Rama Synthetics Tbk's overall GF Score™ is 65/100 with 4 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 Indo-Rama Synthetics Tbk (ISX:INDR), the current ROIC % is -1.92% 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 Indo-Rama Synthetics Tbk (ISX:INDR) Overvalued in 2026?
Based on GuruFocus' analysis, PT Indo-Rama Synthetics Tbk stock appears to be undervalued.
The current stock price of Rp1,920.00 is trading 36.6% below its estimated GF Value™ of Rp3,028.22.
GuruFocus considers PT Indo-Rama Synthetics Tbk to be Possible Value Trap.
Key valuation signals for ISX:INDR:
ROIC %: -1.92%
GF Value™: Rp3,028.22 vs. price of Rp1,920.00 (36.6% below fair value)
No single metric tells the full story. See the ISX:INDR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Indo-Rama Synthetics Tbk is engaged in operation of cotton spinning mill in Purwakarta. It has expanded its Spun Yarns business and diversified into manufacturing of Polyester Filament Yarns, Polyester Staple Fibers, PET Resin, Polyester Chips, and Polyester Filament Fabrics production for all markets, with manufacturing plants located in Purwakarta, and Campaka in Indonesia, and through its indirect subsidiaries, in Uzbekistan and Turkey. Its segment includes Spun yarns manufactures spun yarns and sewing thread; Polyester manufactures polyester filament yarns, polyester staple fibre, textile chips, polyester filament fabrics and pet resin; Minerals, is engaged in gold and coal mining; and Others is engaged in trading, investment, mining and other activities.
65GF Score
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