ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Wentel Engineering Holdings Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.57%.
As of today (2026-07-09), Wentel Engineering Holdings Bhd's WACC % is 10.40%. Wentel Engineering Holdings Bhd's ROIC % is 12.63% (calculated using TTM income statement data).
Wentel Engineering Holdings 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.
Wentel Engineering Holdings Bhd (XKLS:0298) 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, Wentel Engineering Holdings Bhd's WACC % is 10.40%. Wentel Engineering Holdings Bhd's ROIC % is 12.63% (calculated using TTM income statement data).
Wentel Engineering Holdings 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.
Wentel Engineering Holdings Bhd ROIC % Related Terms
Wentel Engineering Holdings 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 Metal Fabrication subindustry, Wentel Engineering Holdings 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.
Wentel Engineering Holdings Bhd ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Wentel Engineering Holdings Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Wentel Engineering Holdings 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.
Wentel Engineering Holdings Bhd (XKLS:0298) has a ROIC % of 5.57% 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 Wentel Engineering Holdings Bhd and its competitors.
Is Wentel Engineering Holdings Bhd's ROIC % too high?
Wentel Engineering Holdings Bhd's current ROIC % is 5.57%. The Industrial Products industry median ROIC % is 5.19. Wentel Engineering Holdings Bhd's value of 5.57% is 7.3% above this industry median. Overall, Wentel Engineering Holdings Bhd has a GF Score™ of 48/100, reflecting its overall financial health beyond just this single metric.
How does Wentel Engineering Holdings Bhd's ROIC % compare to CRS and ATI?
Wentel Engineering Holdings Bhd's ROIC % of 5.57% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.19. Wentel Engineering Holdings Bhd's value of 5.57% is 7.3% 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 an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.19, based on 3,029 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. Wentel Engineering Holdings Bhd's current ROIC % of 5.57% is 7.3% 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 Wentel Engineering Holdings Bhd and its competitors. For the Industrial Products industry, the median ROIC % is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wentel Engineering Holdings Bhd's current ROIC % is 5.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wentel Engineering Holdings Bhd stock overvalued right now?
Wentel Engineering Holdings Bhd (XKLS:0298) has a current ROIC % of 5.57%. The current ROIC % is 5.57% and 7.3% above the Industrial Products industry median of 5.19. Wentel Engineering Holdings Bhd's overall GF Score™ is 48/100 with 1 warning sign 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 Wentel Engineering Holdings Bhd (XKLS:0298), the current ROIC % is 5.57% 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.
Wentel Engineering Holdings Bhd Business Description
Wentel Engineering Holdings Bhd is engaged in the fabrication of semifinished metal products, the fabrication of metal parts, and the assembly of finished products. Fabrication of semifinished metal products includes fabricating metal bodies and accessories to be used in security screening equipment and CNC machines. Fabrication of metal parts includes support blocks, brackets, panels, cover plates, cable covers, housings, channels, and tunnels, and Assembly of finished products involves the integration of electrical, electronic, and mechanical components to produce fully operational walk-through metal detectors. Maximum revenue is generated from the fabrication of semifinished metal products.
48GF Score
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