ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. D G Khan Cement's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 8.20%.
As of today (2026-07-02), D G Khan Cement's WACC % is 9.41%. D G Khan Cement's ROIC % is 9.05% (calculated using TTM income statement data).
D G Khan Cement earns returns that do not match up to its cost of capital. It will destroy value as it grows.
D G Khan Cement (KAR:DGKC) 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, D G Khan Cement's WACC % is 9.41%. D G Khan Cement's ROIC % is 9.05% (calculated using TTM income statement data).
D G Khan Cement 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.
D G Khan Cement ROIC % Related Terms
D G Khan Cement ROIC % Historical Data
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The historical data trend for D G Khan Cement'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 Building Materials subindustry, D G Khan Cement'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.
D G Khan Cement ROIC % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, D G Khan Cement's ROIC % distribution charts can be found below:
* The bar in red indicates where D G Khan Cement'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.
D G Khan Cement (KAR:DGKC) has a ROIC % of 8.20% 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 D G Khan Cement and its competitors.
Is D G Khan Cement's ROIC % too high?
D G Khan Cement's current ROIC % is 8.20%. The Building Materials industry median ROIC % is 3.44. D G Khan Cement's value of 8.20% is 138.7% above this industry median. Overall, D G Khan Cement has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does D G Khan Cement's ROIC % compare to CRH and VMC?
D G Khan Cement's ROIC % of 8.20% can be compared against companies in the Building Materials industry. The industry median ROIC % is 3.44. D G Khan Cement's value of 8.20% is 138.7% 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 Building Materials company?
The median ROIC % among Building Materials companies is 3.44, based on 398 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. D G Khan Cement's current ROIC % of 8.20% is 138.7% 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 D G Khan Cement and its competitors. For the Building Materials industry, the median ROIC % is 3.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. D G Khan Cement's current ROIC % is 8.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is D G Khan Cement stock overvalued right now?
Based on GuruFocus' analysis, D G Khan Cement (KAR:DGKC) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨92.47, compared to a current price of ₨227.14 — trading 145.6% above its estimated fair value. The current ROIC % is 8.20% and 138.7% above the Building Materials industry median of 3.44. D G Khan Cement's overall GF Score™ is 60/100 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 D G Khan Cement (KAR:DGKC), the current ROIC % is 8.20% 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 D G Khan Cement (KAR:DGKC) Overvalued in 2026?
Based on GuruFocus' analysis, D G Khan Cement stock appears to be overvalued.
The current stock price of ₨227.14 is trading 145.6% above its estimated GF Value™ of ₨92.47.
GuruFocus considers D G Khan Cement to be Significantly Overvalued.
Key valuation signals for KAR:DGKC:
ROIC %: 8.20%
GF Value™: ₨92.47 vs. price of ₨227.14 (145.6% above fair value)
Industry Position: 138.7% above the Building Materials median
No single metric tells the full story. See the KAR:DGKC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
D G Khan Cement Ltd is engaged in the production and sale of Clinker, Ordinary Portland and Sulphate Resistant Cement. It has four cement plants, two plants; located at Dera Ghazi Khan, one in Khairpur District, Chakwal, and one in Hub District, Lasbela. Its products are distributed across the Pakistan market. The company has three operating segments, which include the Cement segment: Production and sale of clinker, ordinary portland, and sulphate resistant cement, the Packaging segment: Manufacture and supply of paper products and packing material, the Dairy segment: Production and sale of raw milk.
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