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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 %. Leong Guan Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 18.56%.
As of today (2026-08-22), Leong Guan Holdings's WACC % is 8.52%. Leong Guan Holdings's ROIC % is 9.28% (calculated using TTM income statement data).
Leong Guan Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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, Leong Guan Holdings's WACC % is 8.52%. Leong Guan Holdings's ROIC % is 9.28% (calculated using TTM income statement data).
Leong Guan Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Leong Guan Holdings ROIC % Related Terms
Leong Guan Holdings ROIC % Historical Data
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The historical data trend for Leong Guan Holdings'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.
Leong Guan Holdings ROIC % Chart
Leong Guan Holdings Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
ROIC %
103.40
92.42
89.56
37.00
Leong Guan Holdings Semi-Annual Data
Dec22
Dec23
Dec24
Dec25
ROIC %
0.00
0.00
99.51
18.56
SGX:LGH vs KHC, GIS, HRL: ROIC % Comparison
For the Packaged Foods subindustry, Leong Guan Holdings'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.
Leong Guan Holdings ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Leong Guan Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Leong Guan Holdings'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.
Leong Guan Holdings (SGX:LGH) has a ROIC % of 18.56% 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 Leong Guan Holdings and its competitors.
Is Leong Guan Holdings' ROIC % too high?
Leong Guan Holdings' current ROIC % is 18.56%. The Consumer Packaged Goods industry median ROIC % is 5.42. Leong Guan Holdings' value of 18.56% is 242.4% above this industry median. Overall, Leong Guan Holdings has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Leong Guan Holdings' ROIC % compare to KHC and GIS?
Leong Guan Holdings' ROIC % of 18.56% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.42. Leong Guan Holdings' value of 18.56% is 242.4% 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 Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.42, based on 1,951 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. Leong Guan Holdings's current ROIC % of 18.56% is 242.4% 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 Leong Guan Holdings and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leong Guan Holdings's current ROIC % is 18.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leong Guan Holdings stock overvalued right now?
Leong Guan Holdings (SGX:LGH) has a current ROIC % of 18.56%. The current ROIC % is 18.56% and 242.4% above the Consumer Packaged Goods industry median of 5.42. Leong Guan Holdings' overall GF Score™ is 15/100 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 Leong Guan Holdings (SGX:LGH), the current ROIC % is 18.56% 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.
Leong Guan Holdings Ltd is a food manufacturing and distribution company. The company specialise in the production of fresh noodle products and soy bean-based beancurd products, and also trades a wide range of complementary food items. Through its LG Brand and white-label offerings, the company aims to provide a one-stop food sourcing solution for its customers. The company operates in three main business segments, namely (i) self-manufactured products, (ii) trading products and (iii) original equipment manufacturer (OEM) products. The majority of its revenue is derived from the Self-manufactured products segment, which refers to the products manufactured by the company and delivered to customers under its own LG Brand. Geographically, the company generates maximum revenue from Singapore.
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