ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. BP Plastics Holding Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 9.31%.
As of today (2026-07-08), BP Plastics Holding Bhd's WACC % is 8.01%. BP Plastics Holding Bhd's ROIC % is 4.73% (calculated using TTM income statement data).
BP Plastics Holding Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
BP Plastics Holding Bhd (XKLS:5100) 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, BP Plastics Holding Bhd's WACC % is 8.01%. BP Plastics Holding Bhd's ROIC % is 4.73% (calculated using TTM income statement data).
BP Plastics Holding 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 Packaging & Containers subindustry, BP Plastics Holding 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.
BP Plastics Holding Bhd ROIC % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, BP Plastics Holding Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where BP Plastics Holding 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.
BP Plastics Holding Bhd (XKLS:5100) has a ROIC % of 9.31% 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 BP Plastics Holding Bhd and its competitors.
Is BP Plastics Holding Bhd's ROIC % too high?
BP Plastics Holding Bhd's current ROIC % is 9.31%. The Packaging & Containers industry median ROIC % is 4.22. BP Plastics Holding Bhd's value of 9.31% is 120.6% above this industry median. Overall, BP Plastics Holding Bhd has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does BP Plastics Holding Bhd's ROIC % compare to SW and PKG?
BP Plastics Holding Bhd's ROIC % of 9.31% can be compared against companies in the Packaging & Containers industry. The industry median ROIC % is 4.22. BP Plastics Holding Bhd's value of 9.31% is 120.6% 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 Packaging & Containers company?
The median ROIC % among Packaging & Containers companies is 4.22, based on 396 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. BP Plastics Holding Bhd's current ROIC % of 9.31% is 120.6% 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 BP Plastics Holding Bhd and its competitors. For the Packaging & Containers industry, the median ROIC % is 4.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BP Plastics Holding Bhd's current ROIC % is 9.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BP Plastics Holding Bhd stock overvalued right now?
Based on GuruFocus' analysis, BP Plastics Holding Bhd (XKLS:5100) is currently considered Significantly Undervalued. The stock's GF Value™ is RM1.11, compared to a current price of RM0.70 — trading 36.9% below its estimated fair value. The current ROIC % is 9.31% and 120.6% above the Packaging & Containers industry median of 4.22. BP Plastics Holding Bhd's overall GF Score™ is 71/100 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 BP Plastics Holding Bhd (XKLS:5100), the current ROIC % is 9.31% 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 BP Plastics Holding Bhd (XKLS:5100) Overvalued in 2026?
Based on GuruFocus' analysis, BP Plastics Holding Bhd stock appears to be undervalued.
The current stock price of RM0.70 is trading 36.9% below its estimated GF Value™ of RM1.11.
GuruFocus considers BP Plastics Holding Bhd to be Significantly Undervalued.
Key valuation signals for XKLS:5100:
ROIC %: 9.31%
GF Value™: RM1.11 vs. price of RM0.70 (36.9% below fair value)
Industry Position: 120.6% above the Packaging & Containers median
No single metric tells the full story. See the XKLS:5100 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BP Plastics Holding Bhd is a progressive Polyethylene (PE) flexible plastics packaging manufacturer in Malaysia. The company's products include Cast Stretch Film, Collation Shrink Film, Lamination Base Film, Form-Fill-Seal, and others. It generates the majority of its revenue from Asia Countries, with Malaysia and others also contributing. The company's products are divided into two main divisions: the Cast stretch film division, which accounts for three-quarters of its business, and the Blown PE film division, which accounts for the remaining one-quarter.
71GF Score
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