ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kpj Healthcare Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.94%.
As of today (2026-06-30), Kpj Healthcare Bhd's WACC % is 4.78%. Kpj Healthcare Bhd's ROIC % is 7.66% (calculated using TTM income statement data).
Kpj Healthcare 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.
Kpj Healthcare Bhd (XKLS:5878) 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, Kpj Healthcare Bhd's WACC % is 4.78%. Kpj Healthcare Bhd's ROIC % is 7.66% (calculated using TTM income statement data).
Kpj Healthcare 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.
Kpj Healthcare Bhd ROIC % Related Terms
Kpj Healthcare Bhd ROIC % Historical Data
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The historical data trend for Kpj Healthcare 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 Medical Care Facilities subindustry, Kpj Healthcare 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.
Kpj Healthcare Bhd ROIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Kpj Healthcare Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Kpj Healthcare 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.
Kpj Healthcare Bhd (XKLS:5878) has a ROIC % of 5.94% 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 Kpj Healthcare Bhd and its competitors.
Is Kpj Healthcare Bhd's ROIC % too high?
Kpj Healthcare Bhd's current ROIC % is 5.94%. The Healthcare Providers & Services industry median ROIC % is 3.08. Kpj Healthcare Bhd's value of 5.94% is 93.2% above this industry median. Overall, Kpj Healthcare Bhd has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kpj Healthcare Bhd's ROIC % compare to HCA and THC?
Kpj Healthcare Bhd's ROIC % of 5.94% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.08. Kpj Healthcare Bhd's value of 5.94% is 93.2% 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 Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.08, based on 668 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. Kpj Healthcare Bhd's current ROIC % of 5.94% is 93.2% 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 Kpj Healthcare Bhd and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kpj Healthcare Bhd's current ROIC % is 5.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kpj Healthcare Bhd stock overvalued right now?
Based on GuruFocus' analysis, Kpj Healthcare Bhd (XKLS:5878) is currently considered Significantly Overvalued. The stock's GF Value™ is RM2.48, compared to a current price of RM3.25 — trading 31% above its estimated fair value. The current ROIC % is 5.94% and 93.2% above the Healthcare Providers & Services industry median of 3.08. Kpj Healthcare Bhd's overall GF Score™ is 69/100 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 Kpj Healthcare Bhd (XKLS:5878), the current ROIC % is 5.94% 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 Kpj Healthcare Bhd (XKLS:5878) Overvalued in 2026?
Based on GuruFocus' analysis, Kpj Healthcare Bhd stock appears to be overvalued.
The current stock price of RM3.25 is trading 31% above its estimated GF Value™ of RM2.48.
GuruFocus considers Kpj Healthcare Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:5878:
ROIC %: 5.94%
GF Value™: RM2.48 vs. price of RM3.25 (31% above fair value)
Industry Position: 93.2% above the Healthcare Providers & Services median
No single metric tells the full story. See the XKLS:5878 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KPJ Healthcare Bhd operates as an investment holding company and provides management services to its subsidiaries. The principal activities of the subsidiaries are mainly the operation of specialist hospitals. The reportable segments of the company are: (i) Malaysia - All healthcare activities including the private hospitals, pathology and laboratory services and distribution of pharmaceutical, medical and consumer healthcare products. (ii) Others - Operating segments involved in provision of hospital and retirement village services in Thailand and Australia, a private university and colleges of nursing and allied health and other similar activities in Malaysia. The majority of revenue is derived from the Malaysia segment.
69GF Score
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