ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. T7 Global Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.76%.
As of today (2026-06-29), T7 Global Bhd's WACC % is 3.02%. T7 Global Bhd's ROIC % is 4.42% (calculated using TTM income statement data).
T7 Global 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.
T7 Global Bhd (XKLS:7228) 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, T7 Global Bhd's WACC % is 3.02%. T7 Global Bhd's ROIC % is 4.42% (calculated using TTM income statement data).
T7 Global 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.
T7 Global Bhd ROIC % Related Terms
T7 Global Bhd ROIC % Historical Data
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The historical data trend for T7 Global 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 Oil & Gas Equipment & Services subindustry, T7 Global 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.
T7 Global Bhd ROIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, T7 Global Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where T7 Global 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.
T7 Global Bhd (XKLS:7228) has a ROIC % of 3.76% 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 T7 Global Bhd and its competitors.
Is T7 Global Bhd's ROIC % too high?
T7 Global Bhd's current ROIC % is 3.76%. The Oil & Gas industry median ROIC % is 3.66. T7 Global Bhd's value of 3.76% is 2.9% above this industry median. Overall, T7 Global Bhd has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does T7 Global Bhd's ROIC % compare to SLB and BKR?
T7 Global Bhd's ROIC % of 3.76% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.66. T7 Global Bhd's value of 3.76% is 2.9% 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 Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.66, based on 1,002 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. T7 Global Bhd's current ROIC % of 3.76% is 2.9% 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 T7 Global Bhd and its competitors. For the Oil & Gas industry, the median ROIC % is 3.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. T7 Global Bhd's current ROIC % is 3.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is T7 Global Bhd stock overvalued right now?
Based on GuruFocus' analysis, T7 Global Bhd (XKLS:7228) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.46, compared to a current price of RM0.23 — trading 50% below its estimated fair value. The current ROIC % is 3.76% and 2.9% above the Oil & Gas industry median of 3.66. T7 Global Bhd's overall GF Score™ is 54/100 with 6 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 T7 Global Bhd (XKLS:7228), the current ROIC % is 3.76% 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 T7 Global Bhd (XKLS:7228) Overvalued in 2026?
Based on GuruFocus' analysis, T7 Global Bhd stock appears to be undervalued.
The current stock price of RM0.23 is trading 50% below its estimated GF Value™ of RM0.46.
GuruFocus considers T7 Global Bhd to be Possible Value Trap.
Key valuation signals for XKLS:7228:
ROIC %: 3.76%
GF Value™: RM0.46 vs. price of RM0.23 (50% below fair value)
Industry Position: 2.9% above the Oil & Gas median
No single metric tells the full story. See the XKLS:7228 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
T7 Global Bhd engages in two principal business divisions, namely Energy and Industrial Solutions. The company's energy division is an integrated solution provider capable of serving across the energy value chain, in particular the Upstream Oil & Gas business; and Industrial Solutions offers solutions for various industries by collaborating with international original equipment manufacturers and utilising in-house capabilities. Its Products and services includes rendering of services, maintenance and installation, sales of products and services and supply of manpower, installation services, and others.
54GF Score
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