Action Energy Co KSCC (KUW:ALFTAQA) ROIC %: 8.91% (As of Dec. 2025)

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KUW:ALFTAQA Action Energy Co KSCC KUW:ALFTAQA
13 GF Score
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What is Action Energy Co KSCC ROIC %?

Action Energy Co KSCC KUW:ALFTAQA -1.48% 13 ROIC % is 8.91% as of Dec. 2025. GuruFocus rates KUW:ALFTAQA with a GF Score™ of 13/100.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Action Energy Co KSCC's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 8.91%.

As of today (2026-08-19), Action Energy Co KSCC's WACC % is 9.88%. Action Energy Co KSCC's ROIC % is 8.91% (calculated using TTM income statement data). Action Energy Co KSCC earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Action Energy Co KSCC  (KUW:ALFTAQA) 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, Action Energy Co KSCC's WACC % is 9.88%. Action Energy Co KSCC's ROIC % is 8.91% (calculated using TTM income statement data). Action Energy Co KSCC 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.


Action Energy Co KSCC ROIC % Related Terms


Action Energy Co KSCC ROIC % Historical Data

* Premium members only.

The historical data trend for Action Energy Co KSCC'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.

Action Energy Co KSCC ROIC % Chart

Action Energy Co KSCC Annual Data
Trend Dec24 Dec25
ROIC %
5.25 8.91

Action Energy Co KSCC Semi-Annual Data
Dec24 Dec25
ROIC % 5.25 8.91

KUW:ALFTAQA vs NE, RIG, VAL: ROIC % Comparison

For the Oil & Gas Drilling subindustry, Action Energy Co KSCC'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.


Action Energy Co KSCC ROIC % vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Action Energy Co KSCC's ROIC % distribution charts can be found below:

* The bar in red indicates where Action Energy Co KSCC's ROIC % falls into.


KUW:ALFTAQA
13GF Score
Action Energy Co KSCC KUW:ALFTAQA
ROIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Action Energy Co KSCC ROIC % Calculation

Action Energy Co KSCC's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2025 is calculated as:

ROIC % (A: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2024 ) + Invested Capital (A: Dec. 2025 ))/ count )
=11.918 * ( 1 - 2.05% )/( (125.998 + 135.892)/ 2 )
=11.673681/130.945
=8.91 %

where

Action Energy Co KSCC's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2025 is calculated as:

ROIC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2024 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=11.918 * ( 1 - 2.05% )/( (125.998 + 135.892)/ 2 )
=11.673681/130.945
=8.91 %

where

Note: The Operating Income data used here is one times the annual (Dec. 2025) 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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of 8.91% mean?
Action Energy Co KSCC (KUW:ALFTAQA) has a ROIC % of 8.91% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Action Energy Co KSCC and its competitors.
Is Action Energy Co KSCC's ROIC % too high?
Action Energy Co KSCC's current ROIC % is 8.91%. The Oil & Gas industry median ROIC % is 4.21. Action Energy Co KSCC's value of 8.91% is 111.9% above this industry median. Overall, Action Energy Co KSCC has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Action Energy Co KSCC's ROIC % compare to NE and RIG?
Action Energy Co KSCC's ROIC % of 8.91% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 4.21. Action Energy Co KSCC's value of 8.91% is 111.9% 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 4.21, based on 1,010 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. Action Energy Co KSCC's current ROIC % of 8.91% is 111.9% 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 Action Energy Co KSCC and its competitors. For the Oil & Gas industry, the median ROIC % is 4.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Action Energy Co KSCC's current ROIC % is 8.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Action Energy Co KSCC stock overvalued right now?
Action Energy Co KSCC (KUW:ALFTAQA) has a current ROIC % of 8.91%. The current ROIC % is 8.91% and 111.9% above the Oil & Gas industry median of 4.21. Action Energy Co KSCC's overall GF Score™ is 13/100. 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 Action Energy Co KSCC (KUW:ALFTAQA), the current ROIC % is 8.91% as of Dec. 2025. 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.

Action Energy Co KSCC Business Description

Industry EnergyOil & Gas
Address Al Jahra area, Plot No. 002818, Block 5, Al Jahra, KWT
Action Energy Co KSCC is an upstream oil services provider. It delivers a broad range of upstream services, including onshore Drilling & Workover, Electric Submersible Pumps, Slickline, Wireline, Directional Drilling, OTSG, Inspection, Coil Tubing, Simulation, Cementing, and Mud Engineering.
13GF Score

Get the complete analysis for KUW:ALFTAQA

ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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