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 Resources Building Materials Technology Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 0.81%.
China Resources Building Materials Technology Holdings (FRA:C44) 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 Resources Building Materials Technology Holdings's WACC % is 5.36%. China Resources Building Materials Technology Holdings's ROC % is 0.54% (calculated using TTM income statement data).
China Resources Building Materials Technology Holdings 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 Resources Building Materials Technology Holdings ROC % Related Terms
China Resources Building Materials Technology Holdings 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.
China Resources Building Materials Technology Holdings ROC % Chart
China Resources Building Materials Technology Holdings Annual Data
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 Resources Building Materials Technology Holdings (FRA:C44) has a ROC % of 0.81% 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 Resources Building Materials Technology Holdings and its competitors.
Is China Resources Building Materials Technology Holdings' ROC % too high?
China Resources Building Materials Technology Holdings' current ROC % is 0.81%. The Building Materials industry median ROC % is 3.58. China Resources Building Materials Technology Holdings' value of 0.81% is 77.4% below this industry median. Overall, China Resources Building Materials Technology Holdings has a GF Score™ of 80/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Resources Building Materials Technology Holdings' ROC % compare to CRH and VMC?
China Resources Building Materials Technology Holdings' ROC % of 0.81% can be compared against companies in the Building Materials industry. The industry median ROC % is 3.58. China Resources Building Materials Technology Holdings' value of 0.81% is 77.4% 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 Building Materials company?
The median ROC % among Building Materials companies is 3.58, based on 399 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. China Resources Building Materials Technology Holdings's current ROC % of 0.81% is 77.4% 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 China Resources Building Materials Technology Holdings and its competitors. For the Building Materials industry, the median ROC % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Resources Building Materials Technology Holdings's current ROC % is 0.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Resources Building Materials Technology Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Resources Building Materials Technology Holdings (FRA:C44) is currently considered Possible Value Trap. The stock's GF Value™ is €0.17, compared to a current price of €0.10 — trading 40.6% below its estimated fair value. The current ROC % is 0.81% and 77.4% below the Building Materials industry median of 3.58. China Resources Building Materials Technology Holdings' overall GF Score™ is 80/100 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 China Resources Building Materials Technology Holdings (FRA:C44), the current ROC % is 0.81% 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 Resources Building Materials Technology Holdings (FRA:C44) Overvalued in 2026?
Based on GuruFocus' analysis, China Resources Building Materials Technology Holdings stock appears to be undervalued.
The current stock price of €0.10 is trading 40.6% below its estimated GF Value™ of €0.17.
GuruFocus considers China Resources Building Materials Technology Holdings to be Possible Value Trap.
Key valuation signals for FRA:C44:
ROC %: 0.81%
GF Value™: €0.17 vs. price of €0.10 (40.6% below fair value)
Industry Position: 77.4% below the Building Materials median
No single metric tells the full story. See the FRA:C44 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Resources Building Materials Technology Holdings Business Description
CRBM mainly engages in the production and sale of cement, clinker, and concrete in Southern China. The company was established in 2003, with parent company China Resources Group holding around 68% of the total equity stake. While cement and clinker products have been the largest contributors to CRBM's earnings historically, the firm has forayed into related sectors such as aggregates and engineered stones in recent years. Its major customers include real estate and infrastructure builders in provinces such as Guangdong, Guangxi, and Fujian.
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