ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Haidilao International Holding's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 30.17%.
As of today (2026-07-01), Haidilao International Holding's WACC % is 13.07%. Haidilao International Holding's ROC % is 27.84% (calculated using TTM income statement data).
Haidilao International Holding 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.
Haidilao International Holding (FRA:8HI) 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, Haidilao International Holding's WACC % is 13.07%. Haidilao International Holding's ROC % is 27.84% (calculated using TTM income statement data).
Haidilao International Holding 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.
Haidilao International Holding ROC % Related Terms
Haidilao International Holding 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 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.
Haidilao International Holding (FRA:8HI) has a ROC % of 30.17% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Haidilao International Holding and its competitors.
Is Haidilao International Holding's ROC % too high?
Haidilao International Holding's current ROC % is 30.17%. The Restaurants industry median ROC % is 4.26. Haidilao International Holding's value of 30.17% is 608.2% above this industry median. Overall, Haidilao International Holding has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Haidilao International Holding's ROC % compare to MCD and SBUX?
Haidilao International Holding's ROC % of 30.17% can be compared against companies in the Restaurants industry. The industry median ROC % is 4.26. Haidilao International Holding's value of 30.17% is 608.2% 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 Restaurants company?
The median ROC % among Restaurants companies is 4.26, based on 357 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. Haidilao International Holding's current ROC % of 30.17% is 608.2% 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 Haidilao International Holding and its competitors. For the Restaurants industry, the median ROC % is 4.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Haidilao International Holding's current ROC % is 30.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Haidilao International Holding stock overvalued right now?
Based on GuruFocus' analysis, Haidilao International Holding (FRA:8HI) is currently considered Significantly Undervalued. The stock's GF Value™ is €1.99, compared to a current price of €1.17 — trading 41.2% below its estimated fair value. The current ROC % is 30.17% and 608.2% above the Restaurants industry median of 4.26. Haidilao International Holding's overall GF Score™ is 83/100 with 1 warning sign 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 Haidilao International Holding (FRA:8HI), the current ROC % is 30.17% 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 Haidilao International Holding (FRA:8HI) Overvalued in 2026?
Based on GuruFocus' analysis, Haidilao International Holding stock appears to be undervalued.
The current stock price of €1.17 is trading 41.2% below its estimated GF Value™ of €1.99.
GuruFocus considers Haidilao International Holding to be Significantly Undervalued.
Key valuation signals for FRA:8HI:
ROC %: 30.17%
GF Value™: €1.99 vs. price of €1.17 (41.2% below fair value)
Industry Position: 608.2% above the Restaurants median
No single metric tells the full story. See the FRA:8HI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Haidilao International Holding Business Description
Haidilao, founded in Sichuan in 1998, is a prominent Chinese hot pot restaurant operator. Following the spinoff of its international unit Super Hi, Haidilao now focuses solely on managing restaurants in Greater China.By the end of 2024, the chain operated over 1,300 stores in Greater China, generating more than CNY 40 billion in systemwide sales, making it one of the largest restaurant operators in China. The majority of its restaurants are company-owned, with only a small fraction franchised.
83GF Score
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