ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sanichi Technology Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -24.65%.
As of today (2026-07-03), Sanichi Technology Bhd's WACC % is 4.49%. Sanichi Technology Bhd's ROIC % is -16.60% (calculated using TTM income statement data).
Sanichi Technology Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sanichi Technology Bhd (XKLS:0133) 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, Sanichi Technology Bhd's WACC % is 4.49%. Sanichi Technology Bhd's ROIC % is -16.60% (calculated using TTM income statement data).
Sanichi Technology 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.
* 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 Tools & Accessories subindustry, Sanichi Technology 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.
Sanichi Technology Bhd ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Sanichi Technology Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Sanichi Technology 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.
Sanichi Technology Bhd (XKLS:0133) has a ROIC % of -24.65% 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 Sanichi Technology Bhd and its competitors.
Is Sanichi Technology Bhd's ROIC % too high?
Sanichi Technology Bhd's current ROIC % is -24.65%.
How does Sanichi Technology Bhd's ROIC % compare to SNA and RBC?
Sanichi Technology Bhd's ROIC % of -24.65% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.21. 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 Industrial Products company?
The median ROIC % among Industrial Products companies is 5.21, based on 3,033 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. 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 Sanichi Technology Bhd and its competitors. For the Industrial Products industry, the median ROIC % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sanichi Technology Bhd's current ROIC % is -24.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sanichi Technology Bhd stock overvalued right now?
Based on GuruFocus' analysis, Sanichi Technology Bhd (XKLS:0133) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.13, compared to a current price of RM0.08 — trading 42.3% below its estimated fair value. The current ROIC % is -24.65%. 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 Sanichi Technology Bhd (XKLS:0133), the current ROIC % is -24.65% 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.
Sanichi Technology Bhd is an investment holding company. Through its subsidiaries, the group is organised into the reportable operating segments of Plastic Mould, which is engaged in the designing and fabrication of precision moulds and tooling for use in the automobile; Property development, which involves property development activities; and Others, including investment holding and provision of management services. Maximum revenue for the group is generated from its property development segment. Geographically, it generated maximum revenue from Malaysia, and the rest from the United Kingdom.
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