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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Velesto Energy Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.64%.
As of today (2026-07-19), Velesto Energy Bhd's WACC % is 6.73%. Velesto Energy Bhd's ROIC % is 7.34% (calculated using TTM income statement data).
Velesto Energy 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.
Velesto Energy Bhd (XKLS:5243) 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, Velesto Energy Bhd's WACC % is 6.73%. Velesto Energy Bhd's ROIC % is 7.34% (calculated using TTM income statement data).
Velesto Energy 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.
Velesto Energy Bhd ROIC % Related Terms
Velesto Energy Bhd ROIC % Historical Data
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The historical data trend for Velesto Energy 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 Oil & Gas Drilling subindustry, Velesto Energy 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.
Velesto Energy Bhd ROIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Velesto Energy Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Velesto Energy 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.
Velesto Energy Bhd (XKLS:5243) has a ROIC % of 4.64% 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 Velesto Energy Bhd and its competitors.
Is Velesto Energy Bhd's ROIC % too high?
Velesto Energy Bhd's current ROIC % is 4.64%. The Oil & Gas industry median ROIC % is 3.72. Velesto Energy Bhd's value of 4.64% is 24.7% above this industry median. Overall, Velesto Energy Bhd has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Velesto Energy Bhd's ROIC % compare to NE and RIG?
Velesto Energy Bhd's ROIC % of 4.64% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.72. Velesto Energy Bhd's value of 4.64% is 24.7% 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 an Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.72, based on 997 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. Velesto Energy Bhd's current ROIC % of 4.64% is 24.7% 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 Velesto Energy Bhd and its competitors. For the Oil & Gas industry, the median ROIC % is 3.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velesto Energy Bhd's current ROIC % is 4.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Velesto Energy Bhd stock overvalued right now?
Based on GuruFocus' analysis, Velesto Energy Bhd (XKLS:5243) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.18, compared to a current price of RM0.25 — trading 38.9% above its estimated fair value. The current ROIC % is 4.64% and 24.7% above the Oil & Gas industry median of 3.72. Velesto Energy Bhd's overall GF Score™ is 59/100 with 3 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 Velesto Energy Bhd (XKLS:5243), the current ROIC % is 4.64% 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 Velesto Energy Bhd (XKLS:5243) Overvalued in 2026?
Based on GuruFocus' analysis, Velesto Energy Bhd stock appears to be overvalued.
The current stock price of RM0.25 is trading 38.9% above its estimated GF Value™ of RM0.18.
GuruFocus considers Velesto Energy Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:5243:
ROIC %: 4.64%
GF Value™: RM0.18 vs. price of RM0.25 (38.9% above fair value)
Industry Position: 24.7% above the Oil & Gas median
No single metric tells the full story. See the XKLS:5243 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Velesto Energy Bhd is a Malaysia-based company that provides services to the oil and gas industry. It is engaged in the provision of drilling services for exploration, development, and production wells and workover services to the upstream sector of the oil and gas industry. It is also engaged in the provision of threading, inspection, and repair services for Oil Country Tubular Goods in Malaysia and overseas. The company operates under two segments, namely drilling services and others. The company has a geographical presence in Malaysia and other countries.
59GF Score
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