ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Ray Go Solar Holdings Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2026 was 7.47%.
As of today (2026-07-02), Ray Go Solar Holdings Bhd's WACC % is 3.34%. Ray Go Solar Holdings Bhd's ROIC % is 6.14% (calculated using TTM income statement data).
Ray Go Solar 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.
Ray Go Solar Holdings Bhd (XKLS:03052) 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, Ray Go Solar Holdings Bhd's WACC % is 3.34%. Ray Go Solar Holdings Bhd's ROIC % is 6.14% (calculated using TTM income statement data).
Ray Go Solar 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.
* 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 Solar subindustry, Ray Go Solar 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.
Ray Go Solar Holdings Bhd ROIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Ray Go Solar Holdings Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Ray Go Solar Holdings Bhd's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Apr. 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.
Ray Go Solar Holdings Bhd (XKLS:03052) has a ROIC % of 7.47% as of Apr. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Ray Go Solar Holdings Bhd and its competitors.
Is Ray Go Solar Holdings Bhd's ROIC % too high?
Ray Go Solar Holdings Bhd's current ROIC % is 7.47%. The Semiconductors industry median ROIC % is 3.74. Ray Go Solar Holdings Bhd's value of 7.47% is 99.7% above this industry median. Overall, Ray Go Solar Holdings Bhd has a GF Score™ of 43/100, reflecting its overall financial health beyond just this single metric.
How does Ray Go Solar Holdings Bhd's ROIC % compare to FSLR and NXT?
Ray Go Solar Holdings Bhd's ROIC % of 7.47% can be compared against companies in the Semiconductors industry. The industry median ROIC % is 3.74. Ray Go Solar Holdings Bhd's value of 7.47% is 99.7% 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 Semiconductors company?
The median ROIC % among Semiconductors companies is 3.74, based on 1,010 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. Ray Go Solar Holdings Bhd's current ROIC % of 7.47% is 99.7% 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 Ray Go Solar Holdings Bhd and its competitors. For the Semiconductors industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ray Go Solar Holdings Bhd's current ROIC % is 7.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ray Go Solar Holdings Bhd stock overvalued right now?
Ray Go Solar Holdings Bhd (XKLS:03052) has a current ROIC % of 7.47%. The stock's GF Value™ is RM0.24, compared to a current price of RM0.17 — trading 29.2% below its estimated fair value. The current ROIC % is 7.47% and 99.7% above the Semiconductors industry median of 3.74. Ray Go Solar Holdings Bhd's overall GF Score™ is 43/100 with 7 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 Ray Go Solar Holdings Bhd (XKLS:03052), the current ROIC % is 7.47% as of Apr. 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 Ray Go Solar Holdings Bhd (XKLS:03052) Overvalued in 2026?
Based on GuruFocus' analysis, Ray Go Solar Holdings Bhd stock appears to be undervalued.
The current stock price of RM0.17 is trading 29.2% below its estimated GF Value™ of RM0.24.
Key valuation signals for XKLS:03052:
ROIC %: 7.47%
GF Value™: RM0.24 vs. price of RM0.17 (29.2% below fair value)
Industry Position: 99.7% above the Semiconductors median
No single metric tells the full story. See the XKLS:03052 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ray Go Solar Holdings Bhd is a solar engineering procurement construction (EPC) company providing integrated solar services throughout the entire process of installing a photovoltaic (PV) system. Its business segments include Sales of energy generated from solar projects; and Engineering, Procurement, Construction, and Commissions (EPCC) in solar projects; and operations and maintenance for solar projects. Maximum revenue for the company is derived from its EPCC segment. Geographically, it operates only in Malaysia.
43GF Score
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