ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Geohan Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 4.40%.
As of today (2026-07-03), Geohan Bhd's WACC % is 5.72%. Geohan Bhd's ROIC % is 4.40% (calculated using TTM income statement data).
Geohan Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Geohan Bhd (XKLS:5345) 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, Geohan Bhd's WACC % is 5.72%. Geohan Bhd's ROIC % is 4.40% (calculated using TTM income statement data).
Geohan 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.
Geohan Bhd ROIC % Related Terms
Geohan Bhd ROIC % Historical Data
* Premium members only.
The historical data trend for Geohan 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.
Geohan Bhd ROIC % Chart
Geohan Bhd Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
ROIC %
3.63
6.28
5.21
4.40
Geohan Bhd Semi-Annual Data
Dec22
Dec23
Dec24
Dec25
ROIC %
3.63
6.28
5.21
4.40
XKLS:5345 vs PWR, FIX, EME: ROIC % Comparison
For the Engineering & Construction subindustry, Geohan 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.
Geohan Bhd ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Geohan Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Geohan Bhd's ROIC % falls into.
Note:
The Operating Income data used here is one times the annual (Dec. 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.
Geohan Bhd (XKLS:5345) has a ROIC % of 4.40% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Geohan Bhd and its competitors.
Is Geohan Bhd's ROIC % too high?
Geohan Bhd's current ROIC % is 4.40%. The Construction industry median ROIC % is 4.64. Geohan Bhd's value of 4.40% is 5.1% below this industry median. Overall, Geohan Bhd has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Geohan Bhd's ROIC % compare to PWR and FIX?
Geohan Bhd's ROIC % of 4.40% can be compared against companies in the Construction industry. The industry median ROIC % is 4.64. Geohan Bhd's value of 4.40% is 5.1% below 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 4.64, 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. Geohan Bhd's current ROIC % of 4.40% is 5.1% below 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 Geohan Bhd and its competitors. For the Construction industry, the median ROIC % is 4.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Geohan Bhd's current ROIC % is 4.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Geohan Bhd stock overvalued right now?
Geohan Bhd (XKLS:5345) has a current ROIC % of 4.40%. The current ROIC % is 4.40% and 5.1% below the Construction industry median of 4.64. Geohan Bhd's overall GF Score™ is 11/100 with 5 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 Geohan Bhd (XKLS:5345), the current ROIC % is 4.40% as of Dec. 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.
Geohan Corp Bhd is an investment holding company. Through its Subsidiaries, the company is principally involved in the provision of foundation and geotechnical services, as well as other related services. Its core interests include real estate, construction, and infrastructure development. The company's business segments include: Foundation and geotechnical services; and Other related services. The majority of revenue is derived from the Foundation and geotechnical services segment, which is involved in the provision of piling works, earth retaining structural works and sub-structure works for residential, commercial, industrial as well as infrastructure development.
11GF Score
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