ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kuala Lumpur Kepong Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 6.03%.
As of today (2026-06-26), Kuala Lumpur Kepong Bhd's WACC % is 6.06%. Kuala Lumpur Kepong Bhd's ROIC % is 6.02% (calculated using TTM income statement data).
Kuala Lumpur Kepong Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Kuala Lumpur Kepong Bhd (OTCPK:KLKBF) 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, Kuala Lumpur Kepong Bhd's WACC % is 6.06%. Kuala Lumpur Kepong Bhd's ROIC % is 6.02% (calculated using TTM income statement data).
Kuala Lumpur Kepong Bhd 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.
* 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 Conglomerates subindustry, Kuala Lumpur Kepong Bhd'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.
Kuala Lumpur Kepong Bhd ROIC % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Kuala Lumpur Kepong Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Kuala Lumpur Kepong Bhd'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.
Kuala Lumpur Kepong Bhd (KLKBF) has a ROIC % of 6.03% 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 Kuala Lumpur Kepong Bhd and its competitors.
Is Kuala Lumpur Kepong Bhd's ROIC % too high?
Kuala Lumpur Kepong Bhd's current ROIC % is 6.03%. The Conglomerates industry median ROIC % is 2.82. Kuala Lumpur Kepong Bhd's value of 6.03% is 113.8% above this industry median. Overall, Kuala Lumpur Kepong Bhd has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Kuala Lumpur Kepong Bhd's ROIC % compare to HON and MMM?
Kuala Lumpur Kepong Bhd's ROIC % of 6.03% can be compared against companies in the Conglomerates industry. The industry median ROIC % is 2.82. Kuala Lumpur Kepong Bhd's value of 6.03% is 113.8% 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 Conglomerates company?
The median ROIC % among Conglomerates companies is 2.82, based on 552 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. Kuala Lumpur Kepong Bhd's current ROIC % of 6.03% is 113.8% 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 Kuala Lumpur Kepong Bhd and its competitors. For the Conglomerates industry, the median ROIC % is 2.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kuala Lumpur Kepong Bhd's current ROIC % is 6.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kuala Lumpur Kepong Bhd stock overvalued right now?
Kuala Lumpur Kepong Bhd (KLKBF) has a current ROIC % of 6.03%. The stock's GF Value™ is $6.79, compared to a current price of $6.17 — trading 9.1% below its estimated fair value. The current ROIC % is 6.03% and 113.8% above the Conglomerates industry median of 2.82. Kuala Lumpur Kepong Bhd's overall GF Score™ is 83/100 with 8 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 Kuala Lumpur Kepong Bhd (KLKBF), the current ROIC % is 6.03% 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 Kuala Lumpur Kepong Bhd (KLKBF) Overvalued in 2026?
Based on GuruFocus' analysis, Kuala Lumpur Kepong Bhd stock appears to be undervalued.
The current stock price of $6.17 is trading 9.1% below its estimated GF Value™ of $6.79.
Key valuation signals for KLKBF:
ROIC %: 6.03%
GF Value™: $6.79 vs. price of $6.17 (9.1% below fair value)
Industry Position: 113.8% above the Conglomerates median
No single metric tells the full story. See the KLKBF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kuala Lumpur Kepong Bhd harvests oil palm and rubber plantations in Southeast Asia. On top of utilizing the plantations, the company manufactures fatty acids and alcohols, oleochemicals, soaps, rubber gloves, and other specialty chemicals, and is also engaged in the business of Property development. Its reportable segments include Plantation, Manufacturing, Property Development, Investment Holding, and Others. Majority of revenue is generated from its manufacturing segment, which is involved in the manufacturing of oleochemicals, non-ionic surfactants, and esters, rubber gloves, parquet flooring products, pharmaceutical products, storing and distribution of bulk liquid, refining of palm products, kernel crushing, and trading of palm products. It operates in Malaysia and other regions.
83GF Score
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