ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Magni-Tech Industries Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2026 was 25.94%.
As of today (2026-07-01), Magni-Tech Industries Bhd's WACC % is 5.40%. Magni-Tech Industries Bhd's ROIC % is 25.20% (calculated using TTM income statement data).
Magni-Tech Industries 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.
Magni-Tech Industries Bhd (XKLS:7087) 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, Magni-Tech Industries Bhd's WACC % is 5.40%. Magni-Tech Industries Bhd's ROIC % is 25.20% (calculated using TTM income statement data).
Magni-Tech Industries 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.
* 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 Apparel Manufacturing subindustry, Magni-Tech Industries 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.
Magni-Tech Industries Bhd ROIC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Magni-Tech Industries Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Magni-Tech Industries Bhd's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jan. 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.
Magni-Tech Industries Bhd (XKLS:7087) has a ROIC % of 25.94% as of Jan. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Magni-Tech Industries Bhd and its competitors.
Is Magni-Tech Industries Bhd's ROIC % too high?
Magni-Tech Industries Bhd's current ROIC % is 25.94%. The Manufacturing - Apparel & Accessories industry median ROIC % is 2.91. Magni-Tech Industries Bhd's value of 25.94% is 791.4% above this industry median. Overall, Magni-Tech Industries Bhd has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Magni-Tech Industries Bhd's ROIC % compare to RL and LEVI?
Magni-Tech Industries Bhd's ROIC % of 25.94% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROIC % is 2.91. Magni-Tech Industries Bhd's value of 25.94% is 791.4% 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 Manufacturing - Apparel & Accessories company?
The median ROIC % among Manufacturing - Apparel & Accessories companies is 2.91, based on 1,045 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. Magni-Tech Industries Bhd's current ROIC % of 25.94% is 791.4% 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 Magni-Tech Industries Bhd and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROIC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magni-Tech Industries Bhd's current ROIC % is 25.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magni-Tech Industries Bhd stock overvalued right now?
Based on GuruFocus' analysis, Magni-Tech Industries Bhd (XKLS:7087) is currently considered Modestly Undervalued. The stock's GF Value™ is RM2.39, compared to a current price of RM1.85 — trading 22.6% below its estimated fair value. The current ROIC % is 25.94% and 791.4% above the Manufacturing - Apparel & Accessories industry median of 2.91. Magni-Tech Industries Bhd's overall GF Score™ is 73/100 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 Magni-Tech Industries Bhd (XKLS:7087), the current ROIC % is 25.94% as of Jan. 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 Magni-Tech Industries Bhd (XKLS:7087) Overvalued in 2026?
Based on GuruFocus' analysis, Magni-Tech Industries Bhd stock appears to be undervalued.
The current stock price of RM1.85 is trading 22.6% below its estimated GF Value™ of RM2.39.
GuruFocus considers Magni-Tech Industries Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:7087:
ROIC %: 25.94%
GF Value™: RM2.39 vs. price of RM1.85 (22.6% below fair value)
Industry Position: 791.4% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the XKLS:7087 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magni-Tech Industries Bhd, through its subsidiaries, is principally engaged in the manufacturing and sales of garments. The company is organized into two business segments namely Garments, and Packaging segment. The company derives maximum revenue from the Garment segment. The Group engages in the manufacturing and sale of garments, flexible plastic packaging, and corrugated cartons.
73GF Score
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