ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. LPC Group Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Oct. 2025 was 10.94%.
As of today (2026-06-27), LPC Group Bhd's WACC % is 10.28%. LPC Group Bhd's ROIC % is 5.47% (calculated using TTM income statement data).
LPC Group Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
LPC Group Bhd (XKLS:03065) 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, LPC Group Bhd's WACC % is 10.28%. LPC Group Bhd's ROIC % is 5.47% (calculated using TTM income statement data).
LPC 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.
LPC Group Bhd ROIC % Related Terms
LPC Group Bhd ROIC % Historical Data
* Premium members only.
The historical data trend for LPC 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.
LPC Group Bhd ROIC % Chart
LPC Group Bhd Annual Data
Trend
Apr23
Apr24
Apr25
ROIC %
0.00
9.80
7.70
LPC Group Bhd Semi-Annual Data
Apr23
Apr24
Apr25
Oct25
ROIC %
0.00
0.00
0.00
10.94
XKLS:03065 vs PWR, FIX, EME: ROIC % Comparison
For the Engineering & Construction subindustry, LPC 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.
LPC Group Bhd ROIC % vs Construction Industry
For the Construction industry and Industrials sector, LPC Group Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where LPC Group Bhd's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Oct. 2025) 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.
LPC Group Bhd (XKLS:03065) has a ROIC % of 10.94% as of Oct. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on LPC Group Bhd and its competitors.
Is LPC Group Bhd's ROIC % too high?
LPC Group Bhd's current ROIC % is 10.94%. The Construction industry median ROIC % is 4.65. LPC Group Bhd's value of 10.94% is 135.3% above this industry median. Overall, LPC Group Bhd has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does LPC Group Bhd's ROIC % compare to PWR and FIX?
LPC Group Bhd's ROIC % of 10.94% can be compared against companies in the Construction industry. The industry median ROIC % is 4.65. LPC Group Bhd's value of 10.94% is 135.3% 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 a Construction company?
The median ROIC % among Construction companies is 4.65, 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. LPC Group Bhd's current ROIC % of 10.94% is 135.3% 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 LPC Group Bhd and its competitors. For the Construction industry, the median ROIC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LPC Group Bhd's current ROIC % is 10.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LPC Group Bhd stock overvalued right now?
LPC Group Bhd (XKLS:03065) has a current ROIC % of 10.94%. The current ROIC % is 10.94% and 135.3% above the Construction industry median of 4.65. LPC Group Bhd's overall GF Score™ is 16/100 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 LPC Group Bhd (XKLS:03065), the current ROIC % is 10.94% as of Oct. 2025. 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.
LPC Group Bhd is a registered CIDB G7 contractor, capable of undertaking construction projects of unlimited contract values in Malaysia. It is principally engaged in the following construction activities: (i) Infrastructure Works: Focusing on drainage, retaining walls, detention ponds and roads. (ii) Building Works: Focusing on residential, commercial and industrial buildings. As the project manager, the company plays a central role in planning, managing and overseeing the overall execution of construction projects including coordinating with suppliers and subcontractors to ensure timely completion of project within the contractual period.
16GF Score
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