ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Tex Cycle Technology (M) Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 6.24%.
As of today (2026-06-28), Tex Cycle Technology (M) Bhd's WACC % is 11.30%. Tex Cycle Technology (M) Bhd's ROIC % is -3.61% (calculated using TTM income statement data).
Tex Cycle Technology (M) Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Tex Cycle Technology (M) Bhd (XKLS:0089) 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, Tex Cycle Technology (M) Bhd's WACC % is 11.30%. Tex Cycle Technology (M) Bhd's ROIC % is -3.61% (calculated using TTM income statement data).
Tex Cycle Technology (M) Bhd 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.
Tex Cycle Technology (M) Bhd ROIC % Related Terms
Tex Cycle Technology (M) Bhd 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 Waste Management subindustry, Tex Cycle Technology (M) Bhd'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.
Tex Cycle Technology (M) Bhd ROIC % vs Waste Management Industry
For the Waste Management industry and Industrials sector, Tex Cycle Technology (M) Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Tex Cycle Technology (M) Bhd'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.
Tex Cycle Technology (M) Bhd (XKLS:0089) has a ROIC % of 6.24% 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 Tex Cycle Technology (M) Bhd and its competitors.
Is Tex Cycle Technology (M) Bhd's ROIC % too high?
Tex Cycle Technology (M) Bhd's current ROIC % is 6.24%. The Waste Management industry median ROIC % is 3.51. Tex Cycle Technology (M) Bhd's value of 6.24% is 77.8% above this industry median. Overall, Tex Cycle Technology (M) Bhd has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tex Cycle Technology (M) Bhd's ROIC % compare to WM and RSG?
Tex Cycle Technology (M) Bhd's ROIC % of 6.24% can be compared against companies in the Waste Management industry. The industry median ROIC % is 3.51. Tex Cycle Technology (M) Bhd's value of 6.24% is 77.8% 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 Waste Management company?
The median ROIC % among Waste Management companies is 3.51, based on 245 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. Tex Cycle Technology (M) Bhd's current ROIC % of 6.24% is 77.8% 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 Tex Cycle Technology (M) Bhd and its competitors. For the Waste Management industry, the median ROIC % is 3.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tex Cycle Technology (M) Bhd's current ROIC % is 6.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tex Cycle Technology (M) Bhd stock overvalued right now?
Based on GuruFocus' analysis, Tex Cycle Technology (M) Bhd (XKLS:0089) is currently considered Significantly Undervalued. The stock's GF Value™ is RM1.90, compared to a current price of RM1.02 — trading 46.3% below its estimated fair value. The current ROIC % is 6.24% and 77.8% above the Waste Management industry median of 3.51. Tex Cycle Technology (M) Bhd's overall GF Score™ is 84/100 with 5 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 Tex Cycle Technology (M) Bhd (XKLS:0089), the current ROIC % is 6.24% 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 Tex Cycle Technology (M) Bhd (XKLS:0089) Overvalued in 2026?
Based on GuruFocus' analysis, Tex Cycle Technology (M) Bhd stock appears to be undervalued.
The current stock price of RM1.02 is trading 46.3% below its estimated GF Value™ of RM1.90.
GuruFocus considers Tex Cycle Technology (M) Bhd to be Significantly Undervalued.
Key valuation signals for XKLS:0089:
ROIC %: 6.24%
GF Value™: RM1.90 vs. price of RM1.02 (46.3% below fair value)
Industry Position: 77.8% above the Waste Management median
No single metric tells the full story. See the XKLS:0089 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tex Cycle Technology (M) Bhd is engaged in the provision of recovery and recycling of scheduled waste. It operates in six segments. The investment holding segment comprises investing in property and unquoted securities on a long-term basis; the recovery and recycling services segment comprises the provision of waste recovery and recycling services, and rental of recycled products; the rental of investment property segment; trading segment comprises trading of chemicals and other products; renewable energy segment includes the provision of equipment and consultancy services related to renewable energy; and others segment. The majority of company's revenue comes from the recovery and recycling services segment.
84GF Score
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