ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. TSA Group Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.87%.
As of today (2026-07-01), TSA Group Bhd's WACC % is 9.28%. TSA Group Bhd's ROIC % is 8.66% (calculated using TTM income statement data).
TSA Group Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
TSA Group Bhd (XKLS:0297) 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, TSA Group Bhd's WACC % is 9.28%. TSA Group Bhd's ROIC % is 8.66% (calculated using TTM income statement data).
TSA Group 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.
TSA Group Bhd ROIC % Related Terms
TSA Group Bhd ROIC % Historical Data
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The historical data trend for TSA Group 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 Steel subindustry, TSA Group 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.
TSA Group Bhd ROIC % vs Steel Industry
For the Steel industry and Basic Materials sector, TSA Group Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where TSA Group 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.
TSA Group Bhd (XKLS:0297) has a ROIC % of 5.87% 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 TSA Group Bhd and its competitors.
Is TSA Group Bhd's ROIC % too high?
TSA Group Bhd's current ROIC % is 5.87%. The Steel industry median ROIC % is 2.52. TSA Group Bhd's value of 5.87% is 132.9% above this industry median. Overall, TSA Group Bhd has a GF Score™ of 35/100, reflecting its overall financial health beyond just this single metric.
How does TSA Group Bhd's ROIC % compare to NUE and STLD?
TSA Group Bhd's ROIC % of 5.87% can be compared against companies in the Steel industry. The industry median ROIC % is 2.52. TSA Group Bhd's value of 5.87% is 132.9% 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 a Steel company?
The median ROIC % among Steel companies is 2.52, based on 621 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. TSA Group Bhd's current ROIC % of 5.87% is 132.9% 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 TSA Group Bhd and its competitors. For the Steel industry, the median ROIC % is 2.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TSA Group Bhd's current ROIC % is 5.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TSA Group Bhd stock overvalued right now?
TSA Group Bhd (XKLS:0297) has a current ROIC % of 5.87%. The current ROIC % is 5.87% and 132.9% above the Steel industry median of 2.52. TSA Group Bhd's overall GF Score™ is 35/100 with 10 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 TSA Group Bhd (XKLS:0297), the current ROIC % is 5.87% 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.
TSA Group Bhd is engaged in trading, manufacturing and processing of metal products, mainly of stainless steel. It mainly trades in stainless steel plates, sheets, coils, pipes, square bars, flat bars, round bars, hexagon bars, angle bars, U-channels, chequered and perforated plates, shim and strips, wire, flanges, and pipe fittings. It also supplies products made from other metals comprising copper, aluminum, brass, bronze, lead, and carbon steel. Geographically it operates in Malaysia, Singapore, Bangladesh, Thailand, Indonesia and others, having key revenue from Malaysia.
35GF Score
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