ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. PT Semen Indonesia (Persero) Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.69%.
As of today (2026-06-25), PT Semen Indonesia (Persero) Tbk's WACC % is 6.86%. PT Semen Indonesia (Persero) Tbk's ROIC % is 0.79% (calculated using TTM income statement data).
PT Semen Indonesia (Persero) Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.
PT Semen Indonesia (Persero) Tbk (OTCPK:PSGTY) 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, PT Semen Indonesia (Persero) Tbk's WACC % is 6.86%. PT Semen Indonesia (Persero) Tbk's ROIC % is 0.79% (calculated using TTM income statement data).
PT Semen Indonesia (Persero) Tbk 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.
PT Semen Indonesia (Persero) Tbk ROIC % Related Terms
PT Semen Indonesia (Persero) Tbk 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 Building Materials subindustry, PT Semen Indonesia (Persero) Tbk'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.
PT Semen Indonesia (Persero) Tbk ROIC % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, PT Semen Indonesia (Persero) Tbk's ROIC % distribution charts can be found below:
* The bar in red indicates where PT Semen Indonesia (Persero) Tbk'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.
PT Semen Indonesia (Persero) Tbk (PSGTY) has a ROIC % of 0.69% 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 PT Semen Indonesia (Persero) Tbk and its competitors.
Is PT Semen Indonesia (Persero) Tbk's ROIC % too high?
PT Semen Indonesia (Persero) Tbk's current ROIC % is 0.69%. The Building Materials industry median ROIC % is 3.57. PT Semen Indonesia (Persero) Tbk's value of 0.69% is 80.6% below this industry median. Overall, PT Semen Indonesia (Persero) Tbk has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does PT Semen Indonesia (Persero) Tbk's ROIC % compare to CRH and VMC?
PT Semen Indonesia (Persero) Tbk's ROIC % of 0.69% can be compared against companies in the Building Materials industry. The industry median ROIC % is 3.57. PT Semen Indonesia (Persero) Tbk's value of 0.69% is 80.6% below 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 Building Materials company?
The median ROIC % among Building Materials companies is 3.57, based on 400 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. PT Semen Indonesia (Persero) Tbk's current ROIC % of 0.69% is 80.6% below 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 PT Semen Indonesia (Persero) Tbk and its competitors. For the Building Materials industry, the median ROIC % is 3.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Semen Indonesia (Persero) Tbk's current ROIC % is 0.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Semen Indonesia (Persero) Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Semen Indonesia (Persero) Tbk (PSGTY) is currently considered Possible Value Trap. The stock's GF Value™ is $3.79, compared to a current price of $1.76 — trading 53.6% below its estimated fair value. The current ROIC % is 0.69% and 80.6% below the Building Materials industry median of 3.57. PT Semen Indonesia (Persero) Tbk's overall GF Score™ is 56/100 with 7 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 PT Semen Indonesia (Persero) Tbk (PSGTY), the current ROIC % is 0.69% 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 PT Semen Indonesia (Persero) Tbk (PSGTY) Overvalued in 2026?
Based on GuruFocus' analysis, PT Semen Indonesia (Persero) Tbk stock appears to be undervalued.
The current stock price of $1.76 is trading 53.6% below its estimated GF Value™ of $3.79.
GuruFocus considers PT Semen Indonesia (Persero) Tbk to be Possible Value Trap.
Key valuation signals for PSGTY:
ROIC %: 0.69%
GF Value™: $3.79 vs. price of $1.76 (53.6% below fair value)
Industry Position: 80.6% below the Building Materials median
No single metric tells the full story. See the PSGTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Semen Indonesia (Persero) Tbk Business Description
PT Semen Indonesia (Persero) Tbk is engaged in the manufacturing industry, especially cement & its derivatives, other building materials, and related business activities both upstream and downstream. The company operates in two segments; the Cement Production Segment produces and markets cement products in Indonesia, and Vietnam, as well as various export destination countries, including Bangladesh, Australia, the Philippines, Taiwan, China, and several other countries, and The non-cement production segment, consists of mining limestone and clay, manufacturing packaging bags, developing industrial estates, finished and ready-to-use concrete, information system services, logistics, and trading. It generates a majority of its revenue from the cement production segment.
56GF Score
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