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 Kimia Farma Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.97%.
As of today (2026-07-01), PT Kimia Farma Tbk's WACC % is 8.12%. PT Kimia Farma Tbk's ROIC % is -0.67% (calculated using TTM income statement data).
PT Kimia Farma Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.
PT Kimia Farma Tbk (ISX:KAEF) 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 Kimia Farma Tbk's WACC % is 8.12%. PT Kimia Farma Tbk's ROIC % is -0.67% (calculated using TTM income statement data).
PT Kimia Farma 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 Kimia Farma Tbk ROIC % Related Terms
PT Kimia Farma Tbk ROIC % Historical Data
* Premium members only.
The historical data trend for PT Kimia Farma Tbk'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 Medical Distribution subindustry, PT Kimia Farma 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 Kimia Farma Tbk ROIC % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, PT Kimia Farma Tbk's ROIC % distribution charts can be found below:
* The bar in red indicates where PT Kimia Farma 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 Kimia Farma Tbk (ISX:KAEF) has a ROIC % of 1.97% 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 Kimia Farma Tbk and its competitors.
Is PT Kimia Farma Tbk's ROIC % too high?
PT Kimia Farma Tbk's current ROIC % is 1.97%. The Medical Distribution industry median ROIC % is 5.32. PT Kimia Farma Tbk's value of 1.97% is 62.9% below this industry median. Overall, PT Kimia Farma Tbk has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PT Kimia Farma Tbk's ROIC % compare to MCK and CAH?
PT Kimia Farma Tbk's ROIC % of 1.97% can be compared against companies in the Medical Distribution industry. The industry median ROIC % is 5.32. PT Kimia Farma Tbk's value of 1.97% is 62.9% 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 a Medical Distribution company?
The median ROIC % among Medical Distribution companies is 5.32, based on 116 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 Kimia Farma Tbk's current ROIC % of 1.97% is 62.9% 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 PT Kimia Farma Tbk and its competitors. For the Medical Distribution industry, the median ROIC % is 5.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Kimia Farma Tbk's current ROIC % is 1.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Kimia Farma Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Kimia Farma Tbk (ISX:KAEF) is currently considered Modestly Undervalued. The stock's GF Value™ is Rp581.83, compared to a current price of Rp420.00 — trading 27.8% below its estimated fair value. The current ROIC % is 1.97% and 62.9% below the Medical Distribution industry median of 5.32. PT Kimia Farma Tbk's overall GF Score™ is 56/100 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 Kimia Farma Tbk (ISX:KAEF), the current ROIC % is 1.97% 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 Kimia Farma Tbk (ISX:KAEF) Overvalued in 2026?
Based on GuruFocus' analysis, PT Kimia Farma Tbk stock appears to be undervalued.
The current stock price of Rp420.00 is trading 27.8% below its estimated GF Value™ of Rp581.83.
GuruFocus considers PT Kimia Farma Tbk to be Modestly Undervalued.
Key valuation signals for ISX:KAEF:
ROIC %: 1.97%
GF Value™: Rp581.83 vs. price of Rp420.00 (27.8% below fair value)
Industry Position: 62.9% below the Medical Distribution median
No single metric tells the full story. See the ISX:KAEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Kimia Farma Tbk is an Indonesia-based company engaged in the production and distribution of healthcare products. It operates through the following segments: Manufacture, Distribution, Retail, and Others. The company provides its products in categories including OTC & Herb, Ethical, Cosmetic, Generic, and others. Some of its product offerings include Alergine, Kimoxil, Loprezol, Enkasari, and Batugin among others. It generates maximum revenue from the Retail segment.
56GF Score
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