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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 %. CPBIO Holding Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 12.20%.
As of today (2026-08-06), CPBIO Holding Co's WACC % is 8.05%. CPBIO Holding Co's ROC % is 9.57% (calculated using TTM income statement data).
CPBIO Holding Co 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.
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, CPBIO Holding Co's WACC % is 8.05%. CPBIO Holding Co's ROC % is 9.57% (calculated using TTM income statement data).
CPBIO Holding Co 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 %, 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.
CPBIO Holding Co ROC % Related Terms
CPBIO Holding Co ROC % Historical Data
* Premium members only.
The historical data trend for CPBIO Holding Co's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Dec. 2025) 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.
CPBIO Holding Co (CAIHF) has a ROC % of 12.20% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on CPBIO Holding Co and its competitors.
Is CPBIO Holding Co's ROC % too high?
CPBIO Holding Co's current ROC % is 12.20%. The Drug Manufacturers industry median ROC % is 4.44. CPBIO Holding Co's value of 12.20% is 174.8% above this industry median. Overall, CPBIO Holding Co has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does CPBIO Holding Co's ROC % compare to ZTS?
CPBIO Holding Co's ROC % of 12.20% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.44. CPBIO Holding Co's value of 12.20% is 174.8% 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 ROC % for a Drug Manufacturers company?
The median ROC % among Drug Manufacturers companies is 4.44, based on 990 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. CPBIO Holding Co's current ROC % of 12.20% is 174.8% 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 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 CPBIO Holding Co and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CPBIO Holding Co's current ROC % is 12.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CPBIO Holding Co stock overvalued right now?
CPBIO Holding Co (CAIHF) has a current ROC % of 12.20%. The stock's GF Value™ is $0.14, compared to a current price of $0.28 — trading 100% above its estimated fair value. The current ROC % is 12.20% and 174.8% above the Drug Manufacturers industry median of 4.44. CPBIO Holding Co's overall GF Score™ is 71/100 with 4 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 CPBIO Holding Co (CAIHF), the current ROC % is 12.20% as of Dec. 2025. 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 CPBIO Holding Co (CAIHF) Overvalued in 2026?
Based on GuruFocus' analysis, CPBIO Holding Co stock appears to be overvalued.
The current stock price of $0.28 is trading 100% above its estimated GF Value™ of $0.14.
Key valuation signals for CAIHF:
ROC %: 12.20%
GF Value™: $0.14 vs. price of $0.28 (100% above fair value)
Industry Position: 174.8% above the Drug Manufacturers median
No single metric tells the full story. See the CAIHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chia Tai Enterprises International Ltd is engaged in the manufacture and sale of animal health products and chlortetracycline (CTC). The group has two reportable segments: Biotech Business and Investment Business. The Biotech Business segment is involved in the manufacture and/or sale of animal health products and chlortetracycline. The Investment Business segment is engaged in the trading of machinery and the manufacture and sale of automotive parts through the group's joint ventures and associates. It generates the majority of its revenue from the Biotech Business segment. Its geographical segments are Mainland China, which generates key revenue, Asia Pacific (excluding mainland China), the Americas, Europe, and Others.
71GF Score
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