ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kim Hin Industry Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -22.26%.
As of today (2026-07-06), Kim Hin Industry Bhd's WACC % is 4.63%. Kim Hin Industry Bhd's ROIC % is -17.45% (calculated using TTM income statement data).
Kim Hin Industry Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Kim Hin Industry Bhd (XKLS:5371) 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, Kim Hin Industry Bhd's WACC % is 4.63%. Kim Hin Industry Bhd's ROIC % is -17.45% (calculated using TTM income statement data).
Kim Hin Industry 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 Building Materials subindustry, Kim Hin Industry 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.
Kim Hin Industry Bhd ROIC % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Kim Hin Industry Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Kim Hin Industry 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.
Kim Hin Industry Bhd (XKLS:5371) has a ROIC % of -22.26% 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 Kim Hin Industry Bhd and its competitors.
Is Kim Hin Industry Bhd's ROIC % too high?
Kim Hin Industry Bhd's current ROIC % is -22.26%. Overall, Kim Hin Industry Bhd has a GF Score™ of 18/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kim Hin Industry Bhd's ROIC % compare to CRH and VMC?
Kim Hin Industry Bhd's ROIC % of -22.26% can be compared against companies in the Building Materials industry. The industry median ROIC % is 3.44. 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 Building Materials company?
The median ROIC % among Building Materials companies is 3.44, based on 398 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 Kim Hin Industry Bhd and its competitors. For the Building Materials industry, the median ROIC % is 3.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kim Hin Industry Bhd's current ROIC % is -22.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kim Hin Industry Bhd stock overvalued right now?
Based on GuruFocus' analysis, Kim Hin Industry Bhd (XKLS:5371) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.42, compared to a current price of RM0.85 — trading 101.2% above its estimated fair value. The current ROIC % is -22.26%. Kim Hin Industry Bhd's overall GF Score™ is 18/100 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 Kim Hin Industry Bhd (XKLS:5371), the current ROIC % is -22.26% 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 Kim Hin Industry Bhd (XKLS:5371) Overvalued in 2026?
Based on GuruFocus' analysis, Kim Hin Industry Bhd stock appears to be overvalued.
The current stock price of RM0.85 is trading 101.2% above its estimated GF Value™ of RM0.42.
GuruFocus considers Kim Hin Industry Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:5371:
ROIC %: -22.26%
GF Value™: RM0.42 vs. price of RM0.85 (101.2% above fair value)
No single metric tells the full story. See the XKLS:5371 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kim Hin Industry Bhd is a Malaysia-based investment holding company, engaged in the provision of management services. The group is involved in the production and distribution of ceramic floors, homogeneous and monoprosa tiles, trading in building materials, property, and investment holding. The company manufactures and markets tiles under the brands Kimgres, Durogres, Vitrogres, and Habitat. It is organized into four operating segments according to geographical locations, namely, Malaysia, China, Australia, and Vietnam segments of which the Malaysia segment contributed the majority of the part of its revenue. It has three manufacturing plants, of which two are located in Malaysia (Kuching, Sarawak, and Senawang, Seremban) and the third is located in Shanghai, Peoples Republic of China.
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