ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. China National Building Material Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -5.40%.
As of today (2026-06-25), China National Building Material Co's WACC % is 2.58%. China National Building Material Co's ROC % is 0.00% (calculated using TTM income statement data).
China National Building Material Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
China National Building Material Co (OTCPK:CBUMY) 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, China National Building Material Co's WACC % is 2.58%. China National Building Material Co's ROC % is 0.00% (calculated using TTM income statement data).
China National Building Material 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.
China National Building Material Co ROC % Related Terms
China National Building Material 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.
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.
China National Building Material Co (CBUMY) has a ROC % of -5.40% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on China National Building Material Co and its competitors.
Is China National Building Material Co's ROC % too high?
China National Building Material Co's current ROC % is -5.40%. Overall, China National Building Material Co has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China National Building Material Co's ROC % compare to CRH and VMC?
China National Building Material Co's ROC % of -5.40% can be compared against companies in the Building Materials industry. The industry median ROC % is 3.57. 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 Building Materials company?
The median ROC % among Building Materials companies is 3.57, based on 400 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. 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 China National Building Material Co and its competitors. For the Building Materials industry, the median ROC % is 3.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China National Building Material Co's current ROC % is -5.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China National Building Material Co stock overvalued right now?
Based on GuruFocus' analysis, China National Building Material Co (CBUMY) is currently considered Significantly Overvalued. The stock's GF Value™ is $22.07, compared to a current price of $32.81 — trading 48.7% above its estimated fair value. The current ROC % is -5.40%. China National Building Material Co's overall GF Score™ is 67/100 with 9 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 China National Building Material Co (CBUMY), the current ROC % is -5.40% 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 China National Building Material Co (CBUMY) Overvalued in 2026?
Based on GuruFocus' analysis, China National Building Material Co stock appears to be overvalued.
The current stock price of $32.81 is trading 48.7% above its estimated GF Value™ of $22.07.
GuruFocus considers China National Building Material Co to be Significantly Overvalued.
Key valuation signals for CBUMY:
ROC %: -5.40%
GF Value™: $22.07 vs. price of $32.81 (48.7% above fair value)
No single metric tells the full story. See the CBUMY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China National Building Material Co Business Description
China National Building Material Co Ltd. is a state-owned building material holding company. It has three reportable segments: Basic building materials segment, New materials segment, and Engineering technology service segment. The company's majority of revenue is from the Basic building materials segment. Geographically, the company operates in the PRC, Asia, Europe, the Middle East, Africa, the Americas, and other regions, with the maximum revenue from the PRC and Africa.
67GF Score
Get the complete analysis for CBUMY
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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