ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. SWS Capital Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.16%.
As of today (2026-07-04), SWS Capital Bhd's WACC % is 4.98%. SWS Capital Bhd's ROIC % is -5.03% (calculated using TTM income statement data).
SWS Capital Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
SWS Capital Bhd (XKLS:7186) 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, SWS Capital Bhd's WACC % is 4.98%. SWS Capital Bhd's ROIC % is -5.03% (calculated using TTM income statement data).
SWS Capital 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.
SWS Capital Bhd ROIC % Related Terms
SWS Capital Bhd ROIC % Historical Data
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The historical data trend for SWS Capital 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 Furnishings, Fixtures & Appliances subindustry, SWS Capital 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.
SWS Capital Bhd ROIC % vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, SWS Capital Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where SWS Capital 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.
SWS Capital Bhd (XKLS:7186) has a ROIC % of 3.16% 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 SWS Capital Bhd and its competitors.
Is SWS Capital Bhd's ROIC % too high?
SWS Capital Bhd's current ROIC % is 3.16%. The Furnishings, Fixtures & Appliances industry median ROIC % is 3.46. SWS Capital Bhd's value of 3.16% is 8.7% below this industry median. Overall, SWS Capital Bhd has a GF Score™ of 27/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SWS Capital Bhd's ROIC % compare to SN and SGI?
SWS Capital Bhd's ROIC % of 3.16% can be compared against companies in the Furnishings, Fixtures & Appliances industry. The industry median ROIC % is 3.46. SWS Capital Bhd's value of 3.16% is 8.7% 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 Furnishings, Fixtures & Appliances company?
The median ROIC % among Furnishings, Fixtures & Appliances companies is 3.46, based on 428 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. SWS Capital Bhd's current ROIC % of 3.16% is 8.7% 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 SWS Capital Bhd and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROIC % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SWS Capital Bhd's current ROIC % is 3.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SWS Capital Bhd stock overvalued right now?
Based on GuruFocus' analysis, SWS Capital Bhd (XKLS:7186) is currently considered Fairly Valued. The stock's GF Value™ is RM0.11, compared to a current price of RM0.12 — trading 4.5% above its estimated fair value. The current ROIC % is 3.16% and 8.7% below the Furnishings, Fixtures & Appliances industry median of 3.46. SWS Capital Bhd's overall GF Score™ is 27/100 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 SWS Capital Bhd (XKLS:7186), the current ROIC % is 3.16% 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 SWS Capital Bhd (XKLS:7186) Overvalued in 2026?
Based on GuruFocus' analysis, SWS Capital Bhd stock appears to be overvalued.
The current stock price of RM0.12 is trading 4.5% above its estimated GF Value™ of RM0.11.
GuruFocus considers SWS Capital Bhd to be Fairly Valued.
Key valuation signals for XKLS:7186:
ROIC %: 3.16%
GF Value™: RM0.11 vs. price of RM0.12 (4.5% above fair value)
Industry Position: 8.7% below the Furnishings, Fixtures & Appliances median
No single metric tells the full story. See the XKLS:7186 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SWS Capital Bhd is engaged in the manufacturing and sale of dining furniture, occasional furniture and buffet and hutch, lamination of veneer and paper, and trading of various types of boards, nails, polyethylene, pneumatic fasteners, plastic wares, utensils, and goods and Marketing and distribution of plastic household and industrial products. It operates under two segments that are Investment holding and Manufacturing of plastic wares. The majority of its revenue comes from Plastic wares. Geographically, the company's products are exported to the Asia Pacific, Europe, and Others.
27GF Score
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