ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Teo Guan Lee Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 33.08%.
As of today (2026-07-12), Teo Guan Lee Bhd's WACC % is 5.07%. Teo Guan Lee Bhd's ROIC % is 10.39% (calculated using TTM income statement data).
Teo Guan Lee 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.
Teo Guan Lee Bhd (XKLS:9369) 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, Teo Guan Lee Bhd's WACC % is 5.07%. Teo Guan Lee Bhd's ROIC % is 10.39% (calculated using TTM income statement data).
Teo Guan Lee 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.
Teo Guan Lee Bhd ROIC % Related Terms
Teo Guan Lee Bhd ROIC % Historical Data
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The historical data trend for Teo Guan Lee 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 Apparel Manufacturing subindustry, Teo Guan Lee 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.
Teo Guan Lee Bhd ROIC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Teo Guan Lee Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Teo Guan Lee 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.
Teo Guan Lee Bhd (XKLS:9369) has a ROIC % of 33.08% 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 Teo Guan Lee Bhd and its competitors.
Is Teo Guan Lee Bhd's ROIC % too high?
Teo Guan Lee Bhd's current ROIC % is 33.08%. The Manufacturing - Apparel & Accessories industry median ROIC % is 2.91. Teo Guan Lee Bhd's value of 33.08% is 1036.8% above this industry median. Overall, Teo Guan Lee Bhd has a GF Score™ of 54/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Teo Guan Lee Bhd's ROIC % compare to RL and LEVI?
Teo Guan Lee Bhd's ROIC % of 33.08% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROIC % is 2.91. Teo Guan Lee Bhd's value of 33.08% is 1036.8% 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 a Manufacturing - Apparel & Accessories company?
The median ROIC % among Manufacturing - Apparel & Accessories companies is 2.91, based on 1,041 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. Teo Guan Lee Bhd's current ROIC % of 33.08% is 1036.8% 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 Teo Guan Lee Bhd and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROIC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Teo Guan Lee Bhd's current ROIC % is 33.08%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Teo Guan Lee Bhd stock overvalued right now?
Based on GuruFocus' analysis, Teo Guan Lee Bhd (XKLS:9369) is currently considered Fairly Valued. The stock's GF Value™ is RM0.97, compared to a current price of RM0.88 — trading 9.3% below its estimated fair value. The current ROIC % is 33.08% and 1036.8% above the Manufacturing - Apparel & Accessories industry median of 2.91. Teo Guan Lee Bhd's overall GF Score™ is 54/100 with 1 warning sign 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 Teo Guan Lee Bhd (XKLS:9369), the current ROIC % is 33.08% 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 Teo Guan Lee Bhd (XKLS:9369) Overvalued in 2026?
Based on GuruFocus' analysis, Teo Guan Lee Bhd stock appears to be undervalued.
The current stock price of RM0.88 is trading 9.3% below its estimated GF Value™ of RM0.97.
GuruFocus considers Teo Guan Lee Bhd to be Fairly Valued.
Key valuation signals for XKLS:9369:
ROIC %: 33.08%
GF Value™: RM0.97 vs. price of RM0.88 (9.3% below fair value)
Industry Position: 1036.8% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the XKLS:9369 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Teo Guan Lee Corp Bhd is an investment holding company engaged in the manufacturing, distributing and retailing of branded apparel. It operates through two segments: Apparels: Marketing and distribution of garments and its related accessories, and Investment holding: Property and equity investment. It derives maximum revenue from Apparels segment. The company offers baby and children apparels, accessories, sport, and casual wear through departmental stores, under the brand name of Cuddles, Kikilala, Garfield, Power Puff Girls, Tom & Jerry, Pronic, and Baby Tom & Jerry. It has a single geographical segment that is Malaysia.
54GF Score
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