ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sunway Healthcare Holdings Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.50%.
As of today (2026-07-05), Sunway Healthcare Holdings Bhd's WACC % is 9.92%. Sunway Healthcare Holdings Bhd's ROIC % is 0.62% (calculated using TTM income statement data).
Sunway Healthcare Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sunway Healthcare Holdings Bhd (XKLS:5555) 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, Sunway Healthcare Holdings Bhd's WACC % is 9.92%. Sunway Healthcare Holdings Bhd's ROIC % is 0.62% (calculated using TTM income statement data).
Sunway Healthcare 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.
Sunway Healthcare Holdings Bhd ROIC % Related Terms
Sunway Healthcare Holdings Bhd ROIC % Historical Data
* 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 Medical Care Facilities subindustry, Sunway Healthcare 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.
Sunway Healthcare Holdings Bhd ROIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Sunway Healthcare Holdings Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Sunway Healthcare 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.
Sunway Healthcare Holdings Bhd (XKLS:5555) has a ROIC % of 2.50% 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 Sunway Healthcare Holdings Bhd and its competitors.
Is Sunway Healthcare Holdings Bhd's ROIC % too high?
Sunway Healthcare Holdings Bhd's current ROIC % is 2.50%. The Healthcare Providers & Services industry median ROIC % is 3.09. Sunway Healthcare Holdings Bhd's value of 2.50% is 19.1% below this industry median. Overall, Sunway Healthcare Holdings Bhd has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Sunway Healthcare Holdings Bhd's ROIC % compare to HCA and THC?
Sunway Healthcare Holdings Bhd's ROIC % of 2.50% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.09. Sunway Healthcare Holdings Bhd's value of 2.50% is 19.1% 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 Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.09, based on 667 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. Sunway Healthcare Holdings Bhd's current ROIC % of 2.50% is 19.1% 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 Sunway Healthcare Holdings Bhd and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunway Healthcare Holdings Bhd's current ROIC % is 2.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunway Healthcare Holdings Bhd stock overvalued right now?
Sunway Healthcare Holdings Bhd (XKLS:5555) has a current ROIC % of 2.50%. The current ROIC % is 2.50% and 19.1% below the Healthcare Providers & Services industry median of 3.09. Sunway Healthcare Holdings Bhd's overall GF Score™ is 9/100 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 Sunway Healthcare Holdings Bhd (XKLS:5555), the current ROIC % is 2.50% 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.
Sunway Healthcare Holdings Bhd Business Description
Sunway Healthcare Holdings Bhd is an investment holding company. Through its subsidiaries, it is principally involved in the (i) operation of medical centres; (ii) provision of a wide range of facilities and services for persons in need of senior living care and assistance; (iii) provision of ambulatory care services; and (iv) operation of TCM centres. The company operates two segments: Hospital services, which include medical centre operations and consultation services, and Others, which include investment holding, financial services, senior living care, TCM centres, nursing and ambulatory care, training, property leasing, and related activities. The majority of revenue is generated from the Hospital services segment. Geographically, the maximum revenue is generated from Malaysia.
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