ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Koil Energy Solutions's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 6.22%.
As of today (2026-06-29), Koil Energy Solutions's WACC % is 8.79%. Koil Energy Solutions's ROIC % is -0.15% (calculated using TTM income statement data).
Koil Energy Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Koil Energy Solutions (OTCPK:KLNG) 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, Koil Energy Solutions's WACC % is 8.79%. Koil Energy Solutions's ROIC % is -0.15% (calculated using TTM income statement data).
Koil Energy Solutions 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 Oil & Gas Equipment & Services subindustry, Koil Energy Solutions'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.
Koil Energy Solutions ROIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Koil Energy Solutions's ROIC % distribution charts can be found below:
* The bar in red indicates where Koil Energy Solutions'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.
Koil Energy Solutions (KLNG) has a ROIC % of 6.22% 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 Koil Energy Solutions and its competitors.
Is Koil Energy Solutions' ROIC % too high?
Koil Energy Solutions' current ROIC % is 6.22%. The Oil & Gas industry median ROIC % is 3.66. Koil Energy Solutions' value of 6.22% is 70.2% above this industry median. Overall, Koil Energy Solutions has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Koil Energy Solutions' ROIC % compare to RCON and GWTI?
Koil Energy Solutions' ROIC % of 6.22% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.66. Koil Energy Solutions' value of 6.22% is 70.2% 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 an Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.66, based on 1,002 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. Koil Energy Solutions's current ROIC % of 6.22% is 70.2% 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 Koil Energy Solutions and its competitors. For the Oil & Gas industry, the median ROIC % is 3.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Koil Energy Solutions's current ROIC % is 6.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Koil Energy Solutions stock overvalued right now?
Based on GuruFocus' analysis, Koil Energy Solutions (KLNG) is currently considered Modestly Overvalued. The stock's GF Value™ is $2.13, compared to a current price of $2.44 — trading 14.3% above its estimated fair value. The current ROIC % is 6.22% and 70.2% above the Oil & Gas industry median of 3.66. Koil Energy Solutions' overall GF Score™ is 65/100 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 Koil Energy Solutions (KLNG), the current ROIC % is 6.22% 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 Koil Energy Solutions (KLNG) Overvalued in 2026?
Based on GuruFocus' analysis, Koil Energy Solutions stock appears to be overvalued.
The current stock price of $2.44 is trading 14.3% above its estimated GF Value™ of $2.13.
GuruFocus considers Koil Energy Solutions to be Modestly Overvalued.
Key valuation signals for KLNG:
ROIC %: 6.22%
GF Value™: $2.13 vs. price of $2.44 (14.3% above fair value)
Industry Position: 70.2% above the Oil & Gas median
No single metric tells the full story. See the KLNG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Koil Energy Solutions Inc is an energy services company that provides equipment and support services to the world's energy and offshore industries. Its core services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, and related services. Additionally, the company's team can support subsea engineering, manufacturing, installation, commissioning, & maintenance projects. Its products include Buoyancy Solutions, Flying Leads, Storage, & Transportation, Subsea Fluid & Power Distribution, & Umbilical Termination, loose-tube steel flying leads, & related services. The Company operates as a single operating segment, as an energy services company that provides equipment and support services.
65GF Score
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