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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 %. Petrovietnam Drilling & Well Service's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.74%.
As of today (2026-07-14), Petrovietnam Drilling & Well Service's WACC % is 9.34%. Petrovietnam Drilling & Well Service's ROIC % is 5.27% (calculated using TTM income statement data).
Petrovietnam Drilling & Well Service earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Petrovietnam Drilling & Well Service (STC:PVD) 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, Petrovietnam Drilling & Well Service's WACC % is 9.34%. Petrovietnam Drilling & Well Service's ROIC % is 5.27% (calculated using TTM income statement data).
Petrovietnam Drilling & Well Service 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.
Petrovietnam Drilling & Well Service ROIC % Related Terms
Petrovietnam Drilling & Well Service 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 Oil & Gas Drilling subindustry, Petrovietnam Drilling & Well Service'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.
Petrovietnam Drilling & Well Service ROIC % vs Oil & Gas Industry
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.
Petrovietnam Drilling & Well Service (STC:PVD) has a ROIC % of 5.74% 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 Petrovietnam Drilling & Well Service and its competitors.
Is Petrovietnam Drilling & Well Service's ROIC % too high?
Petrovietnam Drilling & Well Service's current ROIC % is 5.74%. The Oil & Gas industry median ROIC % is 3.71. Petrovietnam Drilling & Well Service's value of 5.74% is 54.9% above this industry median. Overall, Petrovietnam Drilling & Well Service has a GF Score™ of 94/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Petrovietnam Drilling & Well Service's ROIC % compare to NE and RIG?
Petrovietnam Drilling & Well Service's ROIC % of 5.74% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.71. Petrovietnam Drilling & Well Service's value of 5.74% is 54.9% 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 an Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.71, based on 996 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. Petrovietnam Drilling & Well Service's current ROIC % of 5.74% is 54.9% 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 Petrovietnam Drilling & Well Service and its competitors. For the Oil & Gas industry, the median ROIC % is 3.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Petrovietnam Drilling & Well Service's current ROIC % is 5.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Petrovietnam Drilling & Well Service stock overvalued right now?
Based on GuruFocus' analysis, Petrovietnam Drilling & Well Service (STC:PVD) is currently considered Possible Value Trap. The stock's GF Value™ is ₫28,837.91, compared to a current price of ₫18,603.95 — trading 35.5% below its estimated fair value. The current ROIC % is 5.74% and 54.9% above the Oil & Gas industry median of 3.71. Petrovietnam Drilling & Well Service's overall GF Score™ is 94/100 with 3 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 Petrovietnam Drilling & Well Service (STC:PVD), the current ROIC % is 5.74% 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 Petrovietnam Drilling & Well Service (STC:PVD) Overvalued in 2026?
Based on GuruFocus' analysis, Petrovietnam Drilling & Well Service stock appears to be undervalued.
The current stock price of ₫18,603.95 is trading 35.5% below its estimated GF Value™ of ₫28,837.91.
GuruFocus considers Petrovietnam Drilling & Well Service to be Possible Value Trap.
Key valuation signals for STC:PVD:
ROIC %: 5.74%
GF Value™: ₫28,837.91 vs. price of ₫18,603.95 (35.5% below fair value)
Industry Position: 54.9% above the Oil & Gas median
No single metric tells the full story. See the STC:PVD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Petrovietnam Drilling & Well Service Business Description
Petrovietnam Drilling & Well Service Corp is a provider of drilling rigs and technical services for the exploration and exploitation of oil and gas industry locally and internationally. The company operates through three segments namely Drilling services, Trading, and Other services. Its Drilling services segment offers drilling rigs and drilling services. The Trading segment produces material and equipment for drilling-related activities. Its Other services segment is involved in administering well services, wireline logging, oil spill control service, drilling manpower supply service, investment-management project consulting service, management consulting service and other related services. Geographically it operates in Vietnam, Malaysia, Myanmar, Algeria.
94GF Score
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