ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Knm Group Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2025 was -5.94%.
As of today (2026-06-29), Knm Group Bhd's WACC % is 8.28%. Knm Group Bhd's ROIC % is 6.02% (calculated using TTM income statement data).
Knm Group Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Knm Group Bhd (XKLS:7164) 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, Knm Group Bhd's WACC % is 8.28%. Knm Group Bhd's ROIC % is 6.02% (calculated using TTM income statement data).
Knm Group 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.
Knm Group Bhd ROIC % Related Terms
Knm Group Bhd ROIC % Historical Data
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The historical data trend for Knm Group 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 Specialty Industrial Machinery subindustry, Knm Group 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.
Knm Group Bhd ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Knm Group Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Knm Group Bhd's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 2025) 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.
Knm Group Bhd (XKLS:7164) has a ROIC % of -5.94% as of Jun. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Knm Group Bhd and its competitors.
Is Knm Group Bhd's ROIC % too high?
Knm Group Bhd's current ROIC % is -5.94%.
How does Knm Group Bhd's ROIC % compare to GEV and ETN?
Knm Group Bhd's ROIC % of -5.94% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.21. 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. 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 Knm Group 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. Knm Group 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 Knm Group Bhd stock overvalued right now?
Knm Group Bhd (XKLS:7164) has a current ROIC % of -5.94%. The stock's GF Value™ is RM0.01, compared to a current price of RM0.01 — trading 50% below its estimated fair value. The current ROIC % is -5.94%. 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 Knm Group Bhd (XKLS:7164), the current ROIC % is -5.94% as of Jun. 2025. 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.
Knm Group Bhd is a Malaysia-based company offering project management, engineering, manufacturing, and construction services for renewable energy, power, utilities, refining, and petrochemical industries. The company manufactures customized process equipment and modular systems under the brands of KNM, BORSIG, and FBM Hudson. Its geographical segments include Asia and Oceania; Europe; and America. The company derives a majority of its revenue from the Europe Segment. The Europe segment includes Germany, Italy, the United Arab Emirates, the United Kingdom, the British Virgin Islands, the Netherlands, Saudi Arabia, and the Isle of Man.
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