ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. COSCO SHIPPING International (Hong Kong) Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 3.35%.
As of today (2026-06-25), COSCO SHIPPING International (Hong Kong) Co's WACC % is 6.24%. COSCO SHIPPING International (Hong Kong) Co's ROC % is 6.66% (calculated using TTM income statement data).
COSCO SHIPPING International (Hong Kong) 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.
COSCO SHIPPING International (Hong Kong) Co (OTCPK:CHDGF) 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, COSCO SHIPPING International (Hong Kong) Co's WACC % is 6.24%. COSCO SHIPPING International (Hong Kong) Co's ROC % is 6.66% (calculated using TTM income statement data).
COSCO SHIPPING International (Hong Kong) 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.
COSCO SHIPPING International (Hong Kong) Co ROC % Related Terms
COSCO SHIPPING International (Hong Kong) 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.
COSCO SHIPPING International (Hong Kong) Co ROC % Chart
COSCO SHIPPING International (Hong Kong) Co Annual Data
Note:
The Operating Income data used here is two times the semi-annual (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.
COSCO SHIPPING International (Hong Kong) Co (CHDGF) has a ROC % of 3.35% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on COSCO SHIPPING International (Hong Kong) Co and its competitors.
Is COSCO SHIPPING International (Hong Kong) Co's ROC % too high?
COSCO SHIPPING International (Hong Kong) Co's current ROC % is 3.35%. The Transportation industry median ROC % is 4.69. COSCO SHIPPING International (Hong Kong) Co's value of 3.35% is 28.6% below this industry median. Overall, COSCO SHIPPING International (Hong Kong) Co has a GF Score™ of 49/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does COSCO SHIPPING International (Hong Kong) Co's ROC % compare to competitors?
COSCO SHIPPING International (Hong Kong) Co's ROC % of 3.35% can be compared against companies in the Transportation industry. The industry median ROC % is 4.69. COSCO SHIPPING International (Hong Kong) Co's value of 3.35% is 28.6% 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 ROC % for a Transportation company?
The median ROC % among Transportation companies is 4.69, based on 994 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. COSCO SHIPPING International (Hong Kong) Co's current ROC % of 3.35% is 28.6% 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 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 COSCO SHIPPING International (Hong Kong) Co and its competitors. For the Transportation industry, the median ROC % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. COSCO SHIPPING International (Hong Kong) Co's current ROC % is 3.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is COSCO SHIPPING International (Hong Kong) Co stock overvalued right now?
Based on GuruFocus' analysis, COSCO SHIPPING International (Hong Kong) Co (CHDGF) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.54, compared to a current price of $0.70 — trading 29.6% above its estimated fair value. The current ROC % is 3.35% and 28.6% below the Transportation industry median of 4.69. COSCO SHIPPING International (Hong Kong) Co's overall GF Score™ is 49/100 with 2 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 COSCO SHIPPING International (Hong Kong) Co (CHDGF), the current ROC % is 3.35% 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 COSCO SHIPPING International (Hong Kong) Co (CHDGF) Overvalued in 2026?
Based on GuruFocus' analysis, COSCO SHIPPING International (Hong Kong) Co stock appears to be overvalued.
The current stock price of $0.70 is trading 29.6% above its estimated GF Value™ of $0.54.
GuruFocus considers COSCO SHIPPING International (Hong Kong) Co to be Modestly Overvalued.
Key valuation signals for CHDGF:
ROC %: 3.35%
GF Value™: $0.54 vs. price of $0.70 (29.6% above fair value)
Industry Position: 28.6% below the Transportation median
No single metric tells the full story. See the CHDGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
COSCO SHIPPING International (Hong Kong) Co Business Description
COSCO SHIPPING International (Hong Kong) Co Ltd is a Hong Kong-based company engaged in services relating to shipbuilding, ship trading, and chartering for the fleet. It carries its operations in six segments including Coatings, Marine equipment and spare parts, Ship trading agency, Insurance brokerage, Intelligent shipping services and General trading. The majority of its revenue comes from the sale of Marine equipment and spare parts that includes trading and supply of marine equipment and spare parts, and holding of investments in joint ventures. The company has a business network in Mainland China, Hong Kong and other countries.
49GF Score
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