ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kawan Renergy Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2026 was 17.80%.
As of today (2026-06-29), Kawan Renergy Bhd's WACC % is 10.26%. Kawan Renergy Bhd's ROIC % is 26.16% (calculated using TTM income statement data).
Kawan Renergy 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.
Kawan Renergy Bhd (XKLS:0307) 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, Kawan Renergy Bhd's WACC % is 10.26%. Kawan Renergy Bhd's ROIC % is 26.16% (calculated using TTM income statement data).
Kawan Renergy 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.
Kawan Renergy Bhd ROIC % Related Terms
Kawan Renergy Bhd ROIC % Historical Data
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The historical data trend for Kawan Renergy 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 Engineering & Construction subindustry, Kawan Renergy 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.
Kawan Renergy Bhd ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Kawan Renergy Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Kawan Renergy Bhd's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jan. 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.
Kawan Renergy Bhd (XKLS:0307) has a ROIC % of 17.80% as of Jan. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Kawan Renergy Bhd and its competitors.
Is Kawan Renergy Bhd's ROIC % too high?
Kawan Renergy Bhd's current ROIC % is 17.80%. The Construction industry median ROIC % is 4.66. Kawan Renergy Bhd's value of 17.80% is 282% above this industry median. Overall, Kawan Renergy Bhd has a GF Score™ of 50/100, reflecting its overall financial health beyond just this single metric.
How does Kawan Renergy Bhd's ROIC % compare to PWR and FIX?
Kawan Renergy Bhd's ROIC % of 17.80% can be compared against companies in the Construction industry. The industry median ROIC % is 4.66. Kawan Renergy Bhd's value of 17.80% is 282% 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 4.66, based on 1,750 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. Kawan Renergy Bhd's current ROIC % of 17.80% is 282% 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 Kawan Renergy Bhd and its competitors. For the Construction industry, the median ROIC % is 4.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kawan Renergy Bhd's current ROIC % is 17.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawan Renergy Bhd stock overvalued right now?
Kawan Renergy Bhd (XKLS:0307) has a current ROIC % of 17.80%. The current ROIC % is 17.80% and 282% above the Construction industry median of 4.66. Kawan Renergy Bhd's overall GF Score™ is 50/100. 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 Kawan Renergy Bhd (XKLS:0307), the current ROIC % is 17.80% as of Jan. 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.
Kawan Renergy Bhd operates as an engineering solutions provider with core activities spanning the design, fabrication, installation and/or commissioning of industrial process equipment and process plants, as well as renewable energy and co-generation facilities. It offers integrated end-to-end capabilities, including in-house fabrication, installation and commissioning services. These solutions support a wide range of industrial production and processing applications, such as food processing, oleochemical manufacturing, waste recovery and power generation. In addition, it is involved in power generation activities and the sale of electricity through its association. Its segments include Design, fabrication, installation and/or commissioning solutions, Precision engineering, and Others.
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