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 Lautan Luas Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 6.50%.
As of today (2026-06-29), PT Lautan Luas Tbk's WACC % is 5.96%. PT Lautan Luas Tbk's ROIC % is 6.89% (calculated using TTM income statement data).
PT Lautan Luas 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 Lautan Luas Tbk (ISX:LTLS) 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 Lautan Luas Tbk's WACC % is 5.96%. PT Lautan Luas Tbk's ROIC % is 6.89% (calculated using TTM income statement data).
PT Lautan Luas 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 Lautan Luas Tbk ROIC % Related Terms
PT Lautan Luas Tbk ROIC % Historical Data
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The historical data trend for PT Lautan Luas 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 Specialty Chemicals subindustry, PT Lautan Luas 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 Lautan Luas Tbk ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, PT Lautan Luas Tbk's ROIC % distribution charts can be found below:
* The bar in red indicates where PT Lautan Luas 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 Lautan Luas Tbk (ISX:LTLS) has a ROIC % of 6.50% 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 Lautan Luas Tbk and its competitors.
Is PT Lautan Luas Tbk's ROIC % too high?
PT Lautan Luas Tbk's current ROIC % is 6.50%. The Chemicals industry median ROIC % is 4.46. PT Lautan Luas Tbk's value of 6.50% is 45.7% above this industry median. Overall, PT Lautan Luas Tbk has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PT Lautan Luas Tbk's ROIC % compare to LIN and SHW?
PT Lautan Luas Tbk's ROIC % of 6.50% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.46. PT Lautan Luas Tbk's value of 6.50% is 45.7% 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.46, based on 1,581 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 Lautan Luas Tbk's current ROIC % of 6.50% is 45.7% 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 Lautan Luas Tbk and its competitors. For the Chemicals industry, the median ROIC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Lautan Luas Tbk's current ROIC % is 6.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Lautan Luas Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Lautan Luas Tbk (ISX:LTLS) is currently considered Significantly Undervalued. The stock's GF Value™ is Rp1,215.44, compared to a current price of Rp780.00 — trading 35.8% below its estimated fair value. The current ROIC % is 6.50% and 45.7% above the Chemicals industry median of 4.46. PT Lautan Luas Tbk's overall GF Score™ is 67/100 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 Lautan Luas Tbk (ISX:LTLS), the current ROIC % is 6.50% 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 Lautan Luas Tbk (ISX:LTLS) Overvalued in 2026?
Based on GuruFocus' analysis, PT Lautan Luas Tbk stock appears to be undervalued.
The current stock price of Rp780.00 is trading 35.8% below its estimated GF Value™ of Rp1,215.44.
GuruFocus considers PT Lautan Luas Tbk to be Significantly Undervalued.
Key valuation signals for ISX:LTLS:
ROIC %: 6.50%
GF Value™: Rp1,215.44 vs. price of Rp780.00 (35.8% below fair value)
Industry Position: 45.7% above the Chemicals median
No single metric tells the full story. See the ISX:LTLS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Lautan Luas Tbk deals in the manufacturing and distribution of basic and specialty chemicals. It provides services and solutions for corporate customers as well as offers logistics and supply chain, water treatment, and information technology solutions. The company operates in three business segments: Distribution, Manufacturing, and Services. The Distribution segment offers a variety of services and solutions to industries, which also contribute to a portion of the company's revenue. The Manufacturing segment consists of the production of chemicals and other products from its multiple manufacturing facilities located in Indonesia. Finally, the Services segment includes logistics and supply chain businesses. It derives maximum revenue from Distribution segment.
67GF Score
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