ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Wang- Zheng Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -5.37%.
As of today (2026-07-05), Wang- Zheng Bhd's WACC % is 5.63%. Wang- Zheng Bhd's ROIC % is -7.09% (calculated using TTM income statement data).
Wang- Zheng Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Wang- Zheng Bhd (XKLS:7203) 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, Wang- Zheng Bhd's WACC % is 5.63%. Wang- Zheng Bhd's ROIC % is -7.09% (calculated using TTM income statement data).
Wang- Zheng 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.
Wang- Zheng Bhd ROIC % Related Terms
Wang- Zheng Bhd ROIC % Historical Data
* Premium members only.
The historical data trend for Wang- Zheng 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 Paper & Paper Products subindustry, Wang- Zheng 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.
Wang- Zheng Bhd ROIC % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Wang- Zheng Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Wang- Zheng 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.
Wang- Zheng Bhd (XKLS:7203) has a ROIC % of -5.37% 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 Wang- Zheng Bhd and its competitors.
Is Wang- Zheng Bhd's ROIC % too high?
Wang- Zheng Bhd's current ROIC % is -5.37%. Overall, Wang- Zheng Bhd has a GF Score™ of 51/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Wang- Zheng Bhd's ROIC % compare to SLVM?
Wang- Zheng Bhd's ROIC % of -5.37% can be compared against companies in the Forest Products industry. The industry median ROIC % is 1.51. 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 Forest Products company?
The median ROIC % among Forest Products companies is 1.51, based on 277 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 Wang- Zheng Bhd and its competitors. For the Forest Products industry, the median ROIC % is 1.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wang- Zheng Bhd's current ROIC % is -5.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wang- Zheng Bhd stock overvalued right now?
Based on GuruFocus' analysis, Wang- Zheng Bhd (XKLS:7203) is currently considered Significantly Undervalued. The stock's GF Value™ is RM0.57, compared to a current price of RM0.38 — trading 33.3% below its estimated fair value. The current ROIC % is -5.37%. Wang- Zheng Bhd's overall GF Score™ is 51/100 with 4 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 Wang- Zheng Bhd (XKLS:7203), the current ROIC % is -5.37% 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 Wang- Zheng Bhd (XKLS:7203) Overvalued in 2026?
Based on GuruFocus' analysis, Wang- Zheng Bhd stock appears to be undervalued.
The current stock price of RM0.38 is trading 33.3% below its estimated GF Value™ of RM0.57.
GuruFocus considers Wang- Zheng Bhd to be Significantly Undervalued.
Key valuation signals for XKLS:7203:
ROIC %: -5.37%
GF Value™: RM0.57 vs. price of RM0.38 (33.3% below fair value)
No single metric tells the full story. See the XKLS:7203 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wang- Zheng Bhd is an investment holding company. Through its subsidiaries, the company is involved in the manufacturing and processing of fiber-based products, which include disposable adult and baby diapers, sanitary protection and tissue products, cotton products, and processed papers. It has three segments, Processed Paper Products segment; which comprises of processed and distributed papers including wood-free paper and art paper; Disposable Fibre-Based products segment, which comprises of manufacture and distribution of a wide range of disposable adult and baby diapers, sanitary protection, tissue products, and cotton products; and Investment holding and others; which engages in investment holding and others. Key revenue is generated from Processed papers products segment.
51GF Score
Get the complete analysis for XKLS:7203
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XKLS:7203 has been successfully added to your 
