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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 %. Pan Gulf Marketing Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 7.89%.
As of today (2026-07-21), Pan Gulf Marketing Co's WACC % is 6.10%. Pan Gulf Marketing Co's ROIC % is 5.64% (calculated using TTM income statement data).
Pan Gulf Marketing Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Pan Gulf Marketing Co (SAU:9593) 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, Pan Gulf Marketing Co's WACC % is 6.10%. Pan Gulf Marketing Co's ROIC % is 5.64% (calculated using TTM income statement data).
Pan Gulf Marketing Co 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 Specialty Retail subindustry, Pan Gulf Marketing Co'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.
Pan Gulf Marketing Co ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Pan Gulf Marketing Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Pan Gulf Marketing Co'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.
Pan Gulf Marketing Co (SAU:9593) has a ROIC % of 7.89% 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 Pan Gulf Marketing Co and its competitors.
Is Pan Gulf Marketing Co's ROIC % too high?
Pan Gulf Marketing Co's current ROIC % is 7.89%. The Retail - Cyclical industry median ROIC % is 4.30. Pan Gulf Marketing Co's value of 7.89% is 83.5% above this industry median. Overall, Pan Gulf Marketing Co has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Pan Gulf Marketing Co's ROIC % compare to CASY and WSM?
Pan Gulf Marketing Co's ROIC % of 7.89% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.30. Pan Gulf Marketing Co's value of 7.89% is 83.5% 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 Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.30, based on 1,113 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. Pan Gulf Marketing Co's current ROIC % of 7.89% is 83.5% 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 Pan Gulf Marketing Co and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pan Gulf Marketing Co's current ROIC % is 7.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pan Gulf Marketing Co stock overvalued right now?
Pan Gulf Marketing Co (SAU:9593) has a current ROIC % of 7.89%. The current ROIC % is 7.89% and 83.5% above the Retail - Cyclical industry median of 4.30. Pan Gulf Marketing Co's overall GF Score™ is 15/100 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 Pan Gulf Marketing Co (SAU:9593), the current ROIC % is 7.89% 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.
Pan Gulf Marketing Co is engaged in purchasing, marketing, importing, and exporting stationery and office supplies. Its product categories include Writing Instruments, Stationery & Office, DP & Paper Products, Art & Craft, DIY, Luggage & Travel Gear, Shaving Products, Camping & Outdoor, Household Cleaning, Electronics, Household Cookware, and Hygiene. The company has a single operating segment, which involves the import, export, and wholesale and retail trade of office and school equipment, materials, furniture, and supplies. It has four geographical segments: Saudi Arabia, the United Arab Emirates, Kuwait, and other segments.
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