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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Hubei Hongyu New Packaging Materials Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 6.15%.
Hubei Hongyu New Packaging Materials Co (BJSE:920274) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Hubei Hongyu New Packaging Materials Co's WACC % is 10.17%. Hubei Hongyu New Packaging Materials Co's ROC % is 4.32% (calculated using TTM income statement data).
Hubei Hongyu New Packaging Materials Co 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 %, ROC % 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.
Hubei Hongyu New Packaging Materials Co ROC % Related Terms
Hubei Hongyu New Packaging Materials Co ROC % Historical Data
* 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.
Hubei Hongyu New Packaging Materials Co ROC % Chart
Hubei Hongyu New Packaging Materials Co Annual Data
Note:
The Operating Income data used here is four times the quarterly (Jun. 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.
Hubei Hongyu New Packaging Materials Co (BJSE:920274) has a ROC % of 6.15% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Hubei Hongyu New Packaging Materials Co and its competitors.
Is Hubei Hongyu New Packaging Materials Co's ROC % too high?
Hubei Hongyu New Packaging Materials Co's current ROC % is 6.15%. The Packaging & Containers industry median ROC % is 4.48. Hubei Hongyu New Packaging Materials Co's value of 6.15% is 37.3% above this industry median. Overall, Hubei Hongyu New Packaging Materials Co has a GF Score™ of 67/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hubei Hongyu New Packaging Materials Co's ROC % compare to SW and PKG?
Hubei Hongyu New Packaging Materials Co's ROC % of 6.15% can be compared against companies in the Packaging & Containers industry. The industry median ROC % is 4.48. Hubei Hongyu New Packaging Materials Co's value of 6.15% is 37.3% 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 ROC % for a Packaging & Containers company?
The median ROC % among Packaging & Containers companies is 4.48, based on 407 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hubei Hongyu New Packaging Materials Co's current ROC % of 6.15% is 37.3% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Hubei Hongyu New Packaging Materials Co and its competitors. For the Packaging & Containers industry, the median ROC % is 4.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hubei Hongyu New Packaging Materials Co's current ROC % is 6.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hubei Hongyu New Packaging Materials Co stock overvalued right now?
Based on GuruFocus' analysis, Hubei Hongyu New Packaging Materials Co (BJSE:920274) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥13.88, compared to a current price of ¥17.16 — trading 23.6% above its estimated fair value. The current ROC % is 6.15% and 37.3% above the Packaging & Containers industry median of 4.48. Hubei Hongyu New Packaging Materials Co's overall GF Score™ is 67/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Hubei Hongyu New Packaging Materials Co (BJSE:920274), the current ROC % is 6.15% as of Jun. 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 Hubei Hongyu New Packaging Materials Co (BJSE:920274) Overvalued in 2026?
Based on GuruFocus' analysis, Hubei Hongyu New Packaging Materials Co stock appears to be overvalued.
The current stock price of ¥17.16 is trading 23.6% above its estimated GF Value™ of ¥13.88.
GuruFocus considers Hubei Hongyu New Packaging Materials Co to be Modestly Overvalued.
Key valuation signals for BJSE:920274:
ROC %: 6.15%
GF Value™: ¥13.88 vs. price of ¥17.16 (23.6% above fair value)
Industry Position: 37.3% above the Packaging & Containers median
No single metric tells the full story. See the BJSE:920274 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hubei Hongyu New Packaging Materials Co Ltd is engaged in research & development, production, and sales of color printing composite packaging products, injection molding products, and blown film products. The company's products include high-barrier aluminum foil packaging, stand-up pouches, penguin pouches, high-temperature retort pouches, condiment anti-media packaging, cold drinks and frozen food packaging, snack food packaging, cup lid series functional packaging, pharmaceutical packaging, daily chemical washing products packaging, Pet food packaging, electronic product packaging, paper-plastic composite packaging, two-dimensional code traceable labels, medical breathable film, infant health packaging materials, food-grade injection molding containers, etc.
67GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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