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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 %. Khong Guan's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2026 was 2.74%.
As of today (2026-07-19), Khong Guan's WACC % is 7.41%. Khong Guan's ROIC % is 0.00% (calculated using TTM income statement data).
Khong Guan earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Khong Guan (SGX:K03) 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, Khong Guan's WACC % is 7.41%. Khong Guan's ROIC % is 0.00% (calculated using TTM income statement data).
Khong Guan 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.
Khong Guan ROIC % Related Terms
Khong Guan ROIC % Historical Data
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The historical data trend for Khong Guan'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 Food Distribution subindustry, Khong Guan'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.
Khong Guan ROIC % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Khong Guan's ROIC % distribution charts can be found below:
* The bar in red indicates where Khong Guan's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Jan. 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.
Khong Guan (SGX:K03) has a ROIC % of 2.74% as of Jan. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Khong Guan and its competitors.
Is Khong Guan's ROIC % too high?
Khong Guan's current ROIC % is 2.74%. The Retail - Defensive industry median ROIC % is 5.77. Khong Guan's value of 2.74% is 52.5% below this industry median. Overall, Khong Guan has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Khong Guan's ROIC % compare to SYY and USFD?
Khong Guan's ROIC % of 2.74% can be compared against companies in the Retail - Defensive industry. The industry median ROIC % is 5.77. Khong Guan's value of 2.74% is 52.5% 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 Retail - Defensive company?
The median ROIC % among Retail - Defensive companies is 5.77, based on 309 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. Khong Guan's current ROIC % of 2.74% is 52.5% 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 Khong Guan and its competitors. For the Retail - Defensive industry, the median ROIC % is 5.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Khong Guan's current ROIC % is 2.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Khong Guan stock overvalued right now?
Based on GuruFocus' analysis, Khong Guan (SGX:K03) is currently considered Modestly Undervalued. The stock's GF Value™ is S$1.02, compared to a current price of S$0.85 — trading 17.2% below its estimated fair value. The current ROIC % is 2.74% and 52.5% below the Retail - Defensive industry median of 5.77. Khong Guan's overall GF Score™ is 67/100 with 2 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 Khong Guan (SGX:K03), the current ROIC % is 2.74% as of Jan. 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 Khong Guan (SGX:K03) Overvalued in 2026?
Based on GuruFocus' analysis, Khong Guan stock appears to be undervalued.
The current stock price of S$0.85 is trading 17.2% below its estimated GF Value™ of S$1.02.
GuruFocus considers Khong Guan to be Modestly Undervalued.
Key valuation signals for SGX:K03:
ROIC %: 2.74%
GF Value™: S$1.02 vs. price of S$0.85 (17.2% below fair value)
Industry Position: 52.5% below the Retail - Defensive median
No single metric tells the full story. See the SGX:K03 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Khong Guan Ltd is a Singapore-based investment holding company. It has two reportable operating segments; Trading of wheat flour and consumer goods, which is engaged in trading of wheat flour and consumer goods in Singapore and Malaysia; and Others which is involved in trading and holding of quoted and unquoted shares in Singapore and Malaysia. The company generates maximum revenue from the Trading of wheat flour and consumer goods segment. Geographically, it derives a majority of its revenue from Malaysia and the rest from Singapore.
67GF Score
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