ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Gagasan Nadi Cergas Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 6.91%.
As of today (2026-07-07), Gagasan Nadi Cergas Bhd's WACC % is 4.79%. Gagasan Nadi Cergas Bhd's ROIC % is 13.85% (calculated using TTM income statement data).
Gagasan Nadi Cergas 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.
Gagasan Nadi Cergas Bhd (XKLS:0206) 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, Gagasan Nadi Cergas Bhd's WACC % is 4.79%. Gagasan Nadi Cergas Bhd's ROIC % is 13.85% (calculated using TTM income statement data).
Gagasan Nadi Cergas 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.
* 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.
Gagasan Nadi Cergas Bhd ROIC % Competitor Comparison
For the Real Estate - Development subindustry, Gagasan Nadi Cergas 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.
Gagasan Nadi Cergas Bhd ROIC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Gagasan Nadi Cergas Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Gagasan Nadi Cergas 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.
Gagasan Nadi Cergas Bhd (XKLS:0206) has a ROIC % of 6.91% 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 Gagasan Nadi Cergas Bhd and its competitors.
Is Gagasan Nadi Cergas Bhd's ROIC % too high?
Gagasan Nadi Cergas Bhd's current ROIC % is 6.91%. The Real Estate industry median ROIC % is 2.19. Gagasan Nadi Cergas Bhd's value of 6.91% is 215.5% above this industry median. Overall, Gagasan Nadi Cergas Bhd has a GF Score™ of 51/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gagasan Nadi Cergas Bhd's ROIC % compare to competitors?
Gagasan Nadi Cergas Bhd's ROIC % of 6.91% can be compared against companies in the Real Estate industry. The industry median ROIC % is 2.19. Gagasan Nadi Cergas Bhd's value of 6.91% is 215.5% 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 Real Estate company?
The median ROIC % among Real Estate companies is 2.19, based on 1,755 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. Gagasan Nadi Cergas Bhd's current ROIC % of 6.91% is 215.5% 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 Gagasan Nadi Cergas Bhd and its competitors. For the Real Estate industry, the median ROIC % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gagasan Nadi Cergas Bhd's current ROIC % is 6.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gagasan Nadi Cergas Bhd stock overvalued right now?
Based on GuruFocus' analysis, Gagasan Nadi Cergas Bhd (XKLS:0206) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.45, compared to a current price of RM0.35 — trading 23.3% below its estimated fair value. The current ROIC % is 6.91% and 215.5% above the Real Estate industry median of 2.19. Gagasan Nadi Cergas Bhd's overall GF Score™ is 51/100 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 Gagasan Nadi Cergas Bhd (XKLS:0206), the current ROIC % is 6.91% 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 Gagasan Nadi Cergas Bhd (XKLS:0206) Overvalued in 2026?
Based on GuruFocus' analysis, Gagasan Nadi Cergas Bhd stock appears to be undervalued.
The current stock price of RM0.35 is trading 23.3% below its estimated GF Value™ of RM0.45.
GuruFocus considers Gagasan Nadi Cergas Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:0206:
ROIC %: 6.91%
GF Value™: RM0.45 vs. price of RM0.35 (23.3% below fair value)
Industry Position: 215.5% above the Real Estate median
No single metric tells the full story. See the XKLS:0206 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gagasan Nadi Cergas Bhd is engaged in the construction of non-residential and residential buildings. Its segments include the Construction segment; Concession and facility management segment; Utility segment; Property development segment; and Other segment. The majority of the firm's revenue comes from the Property Development segment. The Property Development segment is involved in the development of residential, commercial, and industrial properties. Geographically, the Group operates in Malaysia.
51GF Score
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