ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Chin Well Holdings Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -4.04%.
As of today (2026-06-30), Chin Well Holdings Bhd's WACC % is 6.07%. Chin Well Holdings Bhd's ROIC % is -0.07% (calculated using TTM income statement data).
Chin Well Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Chin Well Holdings Bhd (XKLS:5007) 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, Chin Well Holdings Bhd's WACC % is 6.07%. Chin Well Holdings Bhd's ROIC % is -0.07% (calculated using TTM income statement data).
Chin Well Holdings 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.
* 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 Tools & Accessories subindustry, Chin Well 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.
Chin Well Holdings Bhd ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Chin Well Holdings Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Chin Well 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.
Chin Well Holdings Bhd (XKLS:5007) has a ROIC % of -4.04% 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 Chin Well Holdings Bhd and its competitors.
Is Chin Well Holdings Bhd's ROIC % too high?
Chin Well Holdings Bhd's current ROIC % is -4.04%. Overall, Chin Well Holdings Bhd has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chin Well Holdings Bhd's ROIC % compare to SNA and RBC?
Chin Well Holdings Bhd's ROIC % of -4.04% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.21. 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 5.21, based on 3,033 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. 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 Chin Well Holdings Bhd and its competitors. For the Industrial Products industry, the median ROIC % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chin Well Holdings Bhd's current ROIC % is -4.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chin Well Holdings Bhd stock overvalued right now?
Based on GuruFocus' analysis, Chin Well Holdings Bhd (XKLS:5007) is currently considered Significantly Undervalued. The stock's GF Value™ is RM1.27, compared to a current price of RM0.83 — trading 34.6% below its estimated fair value. The current ROIC % is -4.04%. Chin Well Holdings Bhd's overall GF Score™ is 76/100 with 6 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 Chin Well Holdings Bhd (XKLS:5007), the current ROIC % is -4.04% 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.
Is Chin Well Holdings Bhd (XKLS:5007) Overvalued in 2026?
Based on GuruFocus' analysis, Chin Well Holdings Bhd stock appears to be undervalued.
The current stock price of RM0.83 is trading 34.6% below its estimated GF Value™ of RM1.27.
GuruFocus considers Chin Well Holdings Bhd to be Significantly Undervalued.
Key valuation signals for XKLS:5007:
ROIC %: -4.04%
GF Value™: RM1.27 vs. price of RM0.83 (34.6% below fair value)
No single metric tells the full story. See the XKLS:5007 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chin Well Holdings Bhd is a Malaysia-based investment holding company. It operates in three business segments. The Fastening products segment is a key revenue driver which is engaged in the manufacturing and trading of screws, nuts, bolts, and other fastening products. Its Wire products segment is involved in the production of precision galvanized wire, annealing wire, bright wire, hard drawn wire, polyvinyl chloride wire, bent round bar, and grill mesh. The Investment Holding segment comprises investment holding and property investment activities. Geographically, it operates in Malaysia, Europe, North America, Vietnam, Australia, Other Asia Pacific countries, and others. It derives a majority of its revenue from Europe.
76GF Score
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