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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Longhom Publishers's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 6.62%.
As of today (2026-07-14), Longhom Publishers's WACC % is 9.70%. Longhom Publishers's ROIC % is -1.37% (calculated using TTM income statement data).
Longhom Publishers earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Longhom Publishers (NAI:LKL) 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, Longhom Publishers's WACC % is 9.70%. Longhom Publishers's ROIC % is -1.37% (calculated using TTM income statement data).
Longhom Publishers 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.
Longhom Publishers ROIC % Related Terms
Longhom Publishers ROIC % Historical Data
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The historical data trend for Longhom Publishers'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.
For the Publishing subindustry, Longhom Publishers'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.
Longhom Publishers ROIC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Longhom Publishers's ROIC % distribution charts can be found below:
* The bar in red indicates where Longhom Publishers's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-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.
Longhom Publishers (NAI:LKL) has a ROIC % of 6.62% 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 Longhom Publishers and its competitors.
Is Longhom Publishers' ROIC % too high?
Longhom Publishers' current ROIC % is 6.62%. The Media - Diversified industry median ROIC % is 1.39. Longhom Publishers' value of 6.62% is 376.3% above this industry median. Overall, Longhom Publishers has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Longhom Publishers' ROIC % compare to NYT and WLY?
Longhom Publishers' ROIC % of 6.62% can be compared against companies in the Media - Diversified industry. The industry median ROIC % is 1.39. Longhom Publishers' value of 6.62% is 376.3% 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 Media - Diversified company?
The median ROIC % among Media - Diversified companies is 1.39, based on 1,007 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. Longhom Publishers's current ROIC % of 6.62% is 376.3% 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 Longhom Publishers and its competitors. For the Media - Diversified industry, the median ROIC % is 1.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Longhom Publishers's current ROIC % is 6.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Longhom Publishers stock overvalued right now?
Based on GuruFocus' analysis, Longhom Publishers (NAI:LKL) is currently considered Significantly Overvalued. The stock's GF Value™ is KES1.82, compared to a current price of KES2.79 — trading 53.3% above its estimated fair value. The current ROIC % is 6.62% and 376.3% above the Media - Diversified industry median of 1.39. Longhom Publishers' overall GF Score™ is 49/100 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 Longhom Publishers (NAI:LKL), the current ROIC % is 6.62% 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.
Is Longhom Publishers (NAI:LKL) Overvalued in 2026?
Based on GuruFocus' analysis, Longhom Publishers stock appears to be overvalued.
The current stock price of KES2.79 is trading 53.3% above its estimated GF Value™ of KES1.82.
GuruFocus considers Longhom Publishers to be Significantly Overvalued.
Key valuation signals for NAI:LKL:
ROIC %: 6.62%
GF Value™: KES1.82 vs. price of KES2.79 (53.3% above fair value)
Industry Position: 376.3% above the Media - Diversified median
No single metric tells the full story. See the NAI:LKL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Longhom Publishers PLC provides learning materials and solutions in the East and Central Africa region. The principal activity of the company is publishing and selling of high-quality educational and general books. The business of the company operates through four geographical segments: Kenya, Tanzania, Uganda, and Rwanda. The product line of the company consists of books for primary and secondary classes. The Kenya region generates a majority of revenue for the company.
49GF Score
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