ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Al Ahleia Insurance CoKP's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.63%.
As of today (2026-07-09), Al Ahleia Insurance CoKP's WACC % is 12.41%. Al Ahleia Insurance CoKP's ROIC % is 4.21% (calculated using TTM income statement data).
Al Ahleia Insurance CoKP earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Al Ahleia Insurance CoKP (KUW:AINS) 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, Al Ahleia Insurance CoKP's WACC % is 12.41%. Al Ahleia Insurance CoKP's ROIC % is 4.21% (calculated using TTM income statement data).
Al Ahleia Insurance CoKP 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 Insurance - Diversified subindustry, Al Ahleia Insurance CoKP'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.
Al Ahleia Insurance CoKP ROIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, Al Ahleia Insurance CoKP's ROIC % distribution charts can be found below:
* The bar in red indicates where Al Ahleia Insurance CoKP's ROIC % falls into.
Note:
The EBIT 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.
Al Ahleia Insurance CoKP (KUW:AINS) has a ROIC % of 4.63% 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 Al Ahleia Insurance CoKP and its competitors.
Is Al Ahleia Insurance CoKP's ROIC % too high?
Al Ahleia Insurance CoKP's current ROIC % is 4.63%. The Insurance industry median ROIC % is 3.36. Al Ahleia Insurance CoKP's value of 4.63% is 37.8% above this industry median. Overall, Al Ahleia Insurance CoKP has a GF Score™ of 31/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Al Ahleia Insurance CoKP's ROIC % compare to BRK.A and AIG?
Al Ahleia Insurance CoKP's ROIC % of 4.63% can be compared against companies in the Insurance industry. The industry median ROIC % is 3.36. Al Ahleia Insurance CoKP's value of 4.63% is 37.8% 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 an Insurance company?
The median ROIC % among Insurance companies is 3.36, based on 371 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. Al Ahleia Insurance CoKP's current ROIC % of 4.63% is 37.8% 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 Al Ahleia Insurance CoKP and its competitors. For the Insurance industry, the median ROIC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al Ahleia Insurance CoKP's current ROIC % is 4.63%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Ahleia Insurance CoKP stock overvalued right now?
Based on GuruFocus' analysis, Al Ahleia Insurance CoKP (KUW:AINS) is currently considered Modestly Undervalued. The stock's GF Value™ is KWD0.79, compared to a current price of KWD0.70 — trading 11.3% below its estimated fair value. The current ROIC % is 4.63% and 37.8% above the Insurance industry median of 3.36. Al Ahleia Insurance CoKP's overall GF Score™ is 31/100 with 5 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 Al Ahleia Insurance CoKP (KUW:AINS), the current ROIC % is 4.63% 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 Al Ahleia Insurance CoKP (KUW:AINS) Overvalued in 2026?
Based on GuruFocus' analysis, Al Ahleia Insurance CoKP stock appears to be undervalued.
The current stock price of KWD0.70 is trading 11.3% below its estimated GF Value™ of KWD0.79.
GuruFocus considers Al Ahleia Insurance CoKP to be Modestly Undervalued.
Key valuation signals for KUW:AINS:
ROIC %: 4.63%
GF Value™: KWD0.79 vs. price of KWD0.70 (11.3% below fair value)
Industry Position: 37.8% above the Insurance median
No single metric tells the full story. See the KUW:AINS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al Ahleia Insurance Co SAKP is engaged in the insurance sector. The insurance products of the company include Motor insurance, Life and Medical insurance, Marine and aviation insurance, and Fire and General Accident Insurance.
31GF Score
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