ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Tsogo Sun's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 11.29%.
As of today (2026-06-30), Tsogo Sun's WACC % is 8.24%. Tsogo Sun's ROIC % is 11.17% (calculated using TTM income statement data).
Tsogo Sun 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.
Tsogo Sun (JSE:TSG) 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, Tsogo Sun's WACC % is 8.24%. Tsogo Sun's ROIC % is 11.17% (calculated using TTM income statement data).
Tsogo Sun 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.
Tsogo Sun ROIC % Related Terms
Tsogo Sun ROIC % Historical Data
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The historical data trend for Tsogo Sun'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 Resorts & Casinos subindustry, Tsogo Sun'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.
Tsogo Sun ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Tsogo Sun's ROIC % distribution charts can be found below:
* The bar in red indicates where Tsogo Sun's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Tsogo Sun (JSE:TSG) has a ROIC % of 11.29% 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 Tsogo Sun and its competitors.
Is Tsogo Sun's ROIC % too high?
Tsogo Sun's current ROIC % is 11.29%. The Travel & Leisure industry median ROIC % is 3.77. Tsogo Sun's value of 11.29% is 199.9% above this industry median. Overall, Tsogo Sun has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tsogo Sun's ROIC % compare to LVS and MGM?
Tsogo Sun's ROIC % of 11.29% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.77. Tsogo Sun's value of 11.29% is 199.9% 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 Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.77, based on 834 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. Tsogo Sun's current ROIC % of 11.29% is 199.9% 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 Tsogo Sun and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tsogo Sun's current ROIC % is 11.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tsogo Sun stock overvalued right now?
Based on GuruFocus' analysis, Tsogo Sun (JSE:TSG) is currently considered Modestly Undervalued. The stock's GF Value™ is R10.61, compared to a current price of R7.67 — trading 27.7% below its estimated fair value. The current ROIC % is 11.29% and 199.9% above the Travel & Leisure industry median of 3.77. Tsogo Sun's overall GF Score™ is 76/100 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 Tsogo Sun (JSE:TSG), the current ROIC % is 11.29% 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 Tsogo Sun (JSE:TSG) Overvalued in 2026?
Based on GuruFocus' analysis, Tsogo Sun stock appears to be undervalued.
The current stock price of R7.67 is trading 27.7% below its estimated GF Value™ of R10.61.
GuruFocus considers Tsogo Sun to be Modestly Undervalued.
Key valuation signals for JSE:TSG:
ROIC %: 11.29%
GF Value™: R10.61 vs. price of R7.67 (27.7% below fair value)
Industry Position: 199.9% above the Travel & Leisure median
No single metric tells the full story. See the JSE:TSG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tsogo Sun Ltd is engaged principally in the gaming, entertainment, and hospitality industry operating in South Africa. It owns and operates casino and entertainment destinations in South Africa, hotels, Galaxy Bingo sites, VSlots limited payout machines, playTSOGO, Bet.co.za, a Theme Park, theatres, cinemas, restaurants, bars, and conference facilities. The company's operating segments are; Casinos, LPMs, Other gaming and betting, and Corporate. Maximum revenue for the company is derived from its Casinos segment.
76GF Score
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