ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kobay Technology Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 11.07%.
As of today (2026-07-02), Kobay Technology Bhd's WACC % is 4.31%. Kobay Technology Bhd's ROIC % is 0.64% (calculated using TTM income statement data).
Kobay Technology Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Kobay Technology Bhd (XKLS:6971) 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, Kobay Technology Bhd's WACC % is 4.31%. Kobay Technology Bhd's ROIC % is 0.64% (calculated using TTM income statement data).
Kobay Technology 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 Metal Fabrication subindustry, Kobay Technology 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.
Kobay Technology Bhd ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kobay Technology Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Kobay Technology 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.
Kobay Technology Bhd (XKLS:6971) has a ROIC % of 11.07% 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 Kobay Technology Bhd and its competitors.
Is Kobay Technology Bhd's ROIC % too high?
Kobay Technology Bhd's current ROIC % is 11.07%. The Industrial Products industry median ROIC % is 5.21. Kobay Technology Bhd's value of 11.07% is 112.5% above this industry median. Overall, Kobay Technology Bhd has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kobay Technology Bhd's ROIC % compare to CRS and ATI?
Kobay Technology Bhd's ROIC % of 11.07% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.21. Kobay Technology Bhd's value of 11.07% is 112.5% 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 Industrial Products company?
The median ROIC % among Industrial Products companies is 5.21, based on 3,033 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. Kobay Technology Bhd's current ROIC % of 11.07% is 112.5% 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 Kobay Technology Bhd and its competitors. For the Industrial Products industry, the median ROIC % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kobay Technology Bhd's current ROIC % is 11.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kobay Technology Bhd stock overvalued right now?
Based on GuruFocus' analysis, Kobay Technology Bhd (XKLS:6971) is currently considered Significantly Overvalued. The stock's GF Value™ is RM1.89, compared to a current price of RM2.58 — trading 36.5% above its estimated fair value. The current ROIC % is 11.07% and 112.5% above the Industrial Products industry median of 5.21. Kobay Technology Bhd's overall GF Score™ is 71/100 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 Kobay Technology Bhd (XKLS:6971), the current ROIC % is 11.07% 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 Kobay Technology Bhd (XKLS:6971) Overvalued in 2026?
Based on GuruFocus' analysis, Kobay Technology Bhd stock appears to be overvalued.
The current stock price of RM2.58 is trading 36.5% above its estimated GF Value™ of RM1.89.
GuruFocus considers Kobay Technology Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:6971:
ROIC %: 11.07%
GF Value™: RM1.89 vs. price of RM2.58 (36.5% above fair value)
Industry Position: 112.5% above the Industrial Products median
No single metric tells the full story. See the XKLS:6971 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kobay Technology Bhd is an investment holding company. Along with its subsidiaries, the company operates in the following segments: Manufacturing, Property development, Pharmaceutical and healthcare, Asset Management, Investment holding, and Others. It generates maximum revenue from the Manufacturing segment, which is engaged in the manufacturing of precision machined components, precision stamping, sheet metal parts, surface treatment, precision moulds, tooling and form dies, semiconductor assembly and testing equipment, metal works and structures, modules and parts for oil and gas production and extraction equipment, and components and sub-assemblies for aerospace parts. Geographically, it derives key revenue from Malaysia and the rest from Singapore, the USA, and other regions.
71GF Score
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