ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Petronas Chemicals Group Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.80%.
As of today (2026-06-28), Petronas Chemicals Group Bhd's WACC % is 7.96%. Petronas Chemicals Group Bhd's ROIC % is -2.18% (calculated using TTM income statement data).
Petronas Chemicals Group Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Petronas Chemicals Group Bhd (OTCPK:PECGF) 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, Petronas Chemicals Group Bhd's WACC % is 7.96%. Petronas Chemicals Group Bhd's ROIC % is -2.18% (calculated using TTM income statement data).
Petronas Chemicals Group 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.
Petronas Chemicals Group Bhd ROIC % Related Terms
Petronas Chemicals Group Bhd ROIC % Historical Data
* 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 Chemicals subindustry, Petronas Chemicals Group 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.
Petronas Chemicals Group Bhd ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Petronas Chemicals Group Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Petronas Chemicals Group 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.
Petronas Chemicals Group Bhd (PECGF) has a ROIC % of 4.80% 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 Petronas Chemicals Group Bhd and its competitors.
Is Petronas Chemicals Group Bhd's ROIC % too high?
Petronas Chemicals Group Bhd's current ROIC % is 4.80%. The Chemicals industry median ROIC % is 4.46. Petronas Chemicals Group Bhd's value of 4.80% is 7.6% above this industry median. Overall, Petronas Chemicals Group Bhd has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Petronas Chemicals Group Bhd's ROIC % compare to DOW?
Petronas Chemicals Group Bhd's ROIC % of 4.80% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.46. Petronas Chemicals Group Bhd's value of 4.80% is 7.6% 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.46, based on 1,581 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. Petronas Chemicals Group Bhd's current ROIC % of 4.80% is 7.6% 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 Petronas Chemicals Group Bhd and its competitors. For the Chemicals industry, the median ROIC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Petronas Chemicals Group Bhd's current ROIC % is 4.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Petronas Chemicals Group Bhd stock overvalued right now?
Petronas Chemicals Group Bhd (PECGF) has a current ROIC % of 4.80%. The stock's GF Value™ is $1.17, compared to a current price of $0.86 — trading 26.8% below its estimated fair value. The current ROIC % is 4.80% and 7.6% above the Chemicals industry median of 4.46. Petronas Chemicals Group Bhd's overall GF Score™ is 79/100 with 6 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 Petronas Chemicals Group Bhd (PECGF), the current ROIC % is 4.80% 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 Petronas Chemicals Group Bhd (PECGF) Overvalued in 2026?
Based on GuruFocus' analysis, Petronas Chemicals Group Bhd stock appears to be undervalued.
The current stock price of $0.86 is trading 26.8% below its estimated GF Value™ of $1.17.
Key valuation signals for PECGF:
ROIC %: 4.80%
GF Value™: $1.17 vs. price of $0.86 (26.8% below fair value)
Industry Position: 7.6% above the Chemicals median
No single metric tells the full story. See the PECGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Petronas Chemicals Group Bhd manufactures and sells a variety of petrochemicals. The firm organizes itself into three segments based on product type: Olefins and Derivatives; Fertilizers and Methanol, Specialty Chemicals and others. The Olefins and Derivatives segment, which generates the majority of revenue, is engaged in manufacturing and marketing of a wide range of olefin and polymer products, such as Ethylene, Propylene, and Butyl Acetate among others, which are used as a basic feedstock for other products, to intermediate products including basic and high performance chemicals. The majority of the revenue comes from Malaysia and the rest from China, Thailand, Indonesia, Sweden and other regions.
79GF Score
Get the complete analysis for PECGF
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PECGF has been successfully added to your 
