ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Shifa International Hospitals's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 10.72%.
As of today (2026-06-30), Shifa International Hospitals's WACC % is 10.15%. Shifa International Hospitals's ROIC % is 13.82% (calculated using TTM income statement data).
Shifa International Hospitals 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.
Shifa International Hospitals (KAR:SHFA) 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, Shifa International Hospitals's WACC % is 10.15%. Shifa International Hospitals's ROIC % is 13.82% (calculated using TTM income statement data).
Shifa International Hospitals 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.
Shifa International Hospitals ROIC % Related Terms
Shifa International Hospitals 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 Medical Care Facilities subindustry, Shifa International Hospitals'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.
Shifa International Hospitals ROIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Shifa International Hospitals's ROIC % distribution charts can be found below:
* The bar in red indicates where Shifa International Hospitals'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.
Shifa International Hospitals (KAR:SHFA) has a ROIC % of 10.72% 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 Shifa International Hospitals and its competitors.
Is Shifa International Hospitals' ROIC % too high?
Shifa International Hospitals' current ROIC % is 10.72%. The Healthcare Providers & Services industry median ROIC % is 3.08. Shifa International Hospitals' value of 10.72% is 248.6% above this industry median. Overall, Shifa International Hospitals has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shifa International Hospitals' ROIC % compare to HCA and THC?
Shifa International Hospitals' ROIC % of 10.72% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.08. Shifa International Hospitals' value of 10.72% is 248.6% 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 Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.08, based on 668 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. Shifa International Hospitals's current ROIC % of 10.72% is 248.6% 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 Shifa International Hospitals and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shifa International Hospitals's current ROIC % is 10.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shifa International Hospitals stock overvalued right now?
Based on GuruFocus' analysis, Shifa International Hospitals (KAR:SHFA) is currently considered Modestly Overvalued. The stock's GF Value™ is ₨453.79, compared to a current price of ₨510.86 — trading 12.6% above its estimated fair value. The current ROIC % is 10.72% and 248.6% above the Healthcare Providers & Services industry median of 3.08. Shifa International Hospitals' overall GF Score™ is 85/100. 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 Shifa International Hospitals (KAR:SHFA), the current ROIC % is 10.72% 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 Shifa International Hospitals (KAR:SHFA) Overvalued in 2026?
Based on GuruFocus' analysis, Shifa International Hospitals stock appears to be overvalued.
The current stock price of ₨510.86 is trading 12.6% above its estimated GF Value™ of ₨453.79.
GuruFocus considers Shifa International Hospitals to be Modestly Overvalued.
Key valuation signals for KAR:SHFA:
ROIC %: 10.72%
GF Value™: ₨453.79 vs. price of ₨510.86 (12.6% above fair value)
Industry Position: 248.6% above the Healthcare Providers & Services median
No single metric tells the full story. See the KAR:SHFA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shifa International Hospitals Business Description
Shifa International Hospitals Ltd operates a network of medical centers and hospitals in Pakistan, providing a wide range of medical and surgical services across various specialties. The company offers organ transplant services, including liver, kidney, bone marrow, and corneal transplants. It generates revenue through patient care services, diagnostics, pharmacy operations, and support services such as emergency care and outpatient clinics. Shifa also operates lab collection points, day care surgeries, and diagnostic centers. The company has a presence in multiple cities through hospitals, medical centers, and subsidiaries that support healthcare services and infrastructure development.
85GF Score
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