ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Securemetric Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 11.45%.
As of today (2026-07-06), Securemetric Bhd's WACC % is 5.53%. Securemetric Bhd's ROIC % is 6.43% (calculated using TTM income statement data).
Securemetric Bhd 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.
Securemetric Bhd (XKLS:0203) 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, Securemetric Bhd's WACC % is 5.53%. Securemetric Bhd's ROIC % is 6.43% (calculated using TTM income statement data).
Securemetric Bhd 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.
Securemetric Bhd ROIC % Related Terms
Securemetric Bhd ROIC % Historical Data
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The historical data trend for Securemetric Bhd'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 Software - Infrastructure subindustry, Securemetric 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.
Securemetric Bhd ROIC % vs Software Industry
For the Software industry and Technology sector, Securemetric Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Securemetric 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.
Securemetric Bhd (XKLS:0203) has a ROIC % of 11.45% 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 Securemetric Bhd and its competitors.
Is Securemetric Bhd's ROIC % too high?
Securemetric Bhd's current ROIC % is 11.45%. The Software industry median ROIC % is 3.05. Securemetric Bhd's value of 11.45% is 276% above this industry median.
How does Securemetric Bhd's ROIC % compare to MSFT and ORCL?
Securemetric Bhd's ROIC % of 11.45% can be compared against companies in the Software industry. The industry median ROIC % is 3.05. Securemetric Bhd's value of 11.45% is 276% 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 Software company?
The median ROIC % among Software companies is 3.05, based on 2,822 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. Securemetric Bhd's current ROIC % of 11.45% is 276% 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 Securemetric Bhd and its competitors. For the Software industry, the median ROIC % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Securemetric Bhd's current ROIC % is 11.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Securemetric Bhd stock overvalued right now?
Based on GuruFocus' analysis, Securemetric Bhd (XKLS:0203) is currently considered Significantly Undervalued. The stock's GF Value™ is RM0.16, compared to a current price of RM0.10 — trading 40.6% below its estimated fair value. The current ROIC % is 11.45% and 276% above the Software industry median of 3.05. 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 Securemetric Bhd (XKLS:0203), the current ROIC % is 11.45% 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.
Securemetric Bhd is an investment holding company. Along with its subsidiaries, it is engaged in the provision of digital security solutions, trading of electronic identification products, and other related services. The group's business segments are Digital security solutions, Electronic identification products, Maintenance services, and Others. A majority of its revenue is generated from the Digital security solutions segment, which provides solutions related to two-factor authentication (2FA), PKI solutions, software licensing, protection dongles, and the CENTAGATE software, which manages user authentication and supports multi-factor and multi-channel authentication and digital signing solutions (SigningCloud). Geographically, the group generates maximum revenue from the Philippines.
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