ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Lotus KFM Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.17%.
As of today (2026-06-30), Lotus KFM Bhd's WACC % is 16.04%. Lotus KFM Bhd's ROIC % is 1.26% (calculated using TTM income statement data).
Lotus KFM Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Lotus KFM Bhd (XKLS:8303) 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, Lotus KFM Bhd's WACC % is 16.04%. Lotus KFM Bhd's ROIC % is 1.26% (calculated using TTM income statement data).
Lotus KFM 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.
Lotus KFM Bhd ROIC % Related Terms
Lotus KFM Bhd ROIC % Historical Data
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The historical data trend for Lotus KFM 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 Packaged Foods subindustry, Lotus KFM 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.
Lotus KFM Bhd ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lotus KFM Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Lotus KFM 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.
Lotus KFM Bhd (XKLS:8303) has a ROIC % of 1.17% 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 Lotus KFM Bhd and its competitors.
Is Lotus KFM Bhd's ROIC % too high?
Lotus KFM Bhd's current ROIC % is 1.17%. The Consumer Packaged Goods industry median ROIC % is 5.13. Lotus KFM Bhd's value of 1.17% is 77.2% below this industry median.
How does Lotus KFM Bhd's ROIC % compare to KHC and GIS?
Lotus KFM Bhd's ROIC % of 1.17% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.13. Lotus KFM Bhd's value of 1.17% is 77.2% 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 Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.13, based on 1,944 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. Lotus KFM Bhd's current ROIC % of 1.17% is 77.2% 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 Lotus KFM Bhd and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lotus KFM Bhd's current ROIC % is 1.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lotus KFM Bhd stock overvalued right now?
Based on GuruFocus' analysis, Lotus KFM Bhd (XKLS:8303) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.15, compared to a current price of RM0.10 — trading 36.7% below its estimated fair value. The current ROIC % is 1.17% and 77.2% below the Consumer Packaged Goods industry median of 5.13. 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 Lotus KFM Bhd (XKLS:8303), the current ROIC % is 1.17% 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.
Lotus KFM Bhd is engaged in flour milling and trading in its related products. The two main sources of revenue comprise Wheat Flour and Trading of Tapioca Flour and Cornflour. Some of its Pre-Mix products are Easimix Golden Sponge, Easimix Butter, Easimix Potato, Golden Sponge Mix, and Easimix Light Wholemeal. Its Business segments include: Flour milling and trading segment, which includes Flour milling and trading Flour milling and trading of flour, starch and chemical; and Plantation segment, which includes Investment holding and plantation activities. The company derives maximum revenue from Flour milling and trading segment.
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