ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Guangzhou Baiyunshan Pharmaceutical Holdings Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 15.59%.
As of today (2026-06-26), Guangzhou Baiyunshan Pharmaceutical Holdings Co's WACC % is 5.97%. Guangzhou Baiyunshan Pharmaceutical Holdings Co's ROC % is 6.31% (calculated using TTM income statement data).
Guangzhou Baiyunshan Pharmaceutical Holdings 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.
Guangzhou Baiyunshan Pharmaceutical Holdings Co (FRA:GU5) 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, Guangzhou Baiyunshan Pharmaceutical Holdings Co's WACC % is 5.97%. Guangzhou Baiyunshan Pharmaceutical Holdings Co's ROC % is 6.31% (calculated using TTM income statement data).
Guangzhou Baiyunshan Pharmaceutical Holdings 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.
Guangzhou Baiyunshan Pharmaceutical Holdings Co ROC % Related Terms
Guangzhou Baiyunshan Pharmaceutical Holdings 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.
Guangzhou Baiyunshan Pharmaceutical Holdings Co ROC % Chart
Guangzhou Baiyunshan Pharmaceutical Holdings Co Annual Data
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) 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.
Guangzhou Baiyunshan Pharmaceutical Holdings Co (FRA:GU5) has a ROC % of 15.59% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Guangzhou Baiyunshan Pharmaceutical Holdings Co and its competitors.
Is Guangzhou Baiyunshan Pharmaceutical Holdings Co's ROC % too high?
Guangzhou Baiyunshan Pharmaceutical Holdings Co's current ROC % is 15.59%. The Medical Distribution industry median ROC % is 5.43. Guangzhou Baiyunshan Pharmaceutical Holdings Co's value of 15.59% is 187.4% above this industry median. Overall, Guangzhou Baiyunshan Pharmaceutical Holdings Co has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Guangzhou Baiyunshan Pharmaceutical Holdings Co's ROC % compare to MCK and COR?
Guangzhou Baiyunshan Pharmaceutical Holdings Co's ROC % of 15.59% can be compared against companies in the Medical Distribution industry. The industry median ROC % is 5.43. Guangzhou Baiyunshan Pharmaceutical Holdings Co's value of 15.59% is 187.4% 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 Medical Distribution company?
The median ROC % among Medical Distribution companies is 5.43, based on 118 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. Guangzhou Baiyunshan Pharmaceutical Holdings Co's current ROC % of 15.59% is 187.4% 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 Guangzhou Baiyunshan Pharmaceutical Holdings Co and its competitors. For the Medical Distribution industry, the median ROC % is 5.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangzhou Baiyunshan Pharmaceutical Holdings Co's current ROC % is 15.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangzhou Baiyunshan Pharmaceutical Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Guangzhou Baiyunshan Pharmaceutical Holdings Co (FRA:GU5) is currently considered Significantly Undervalued. The stock's GF Value™ is €2.33, compared to a current price of €1.57 — trading 32.6% below its estimated fair value. The current ROC % is 15.59% and 187.4% above the Medical Distribution industry median of 5.43. Guangzhou Baiyunshan Pharmaceutical Holdings Co's overall GF Score™ is 68/100 with 6 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 Guangzhou Baiyunshan Pharmaceutical Holdings Co (FRA:GU5), the current ROC % is 15.59% as of Mar. 2026. 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 Guangzhou Baiyunshan Pharmaceutical Holdings Co (FRA:GU5) Overvalued in 2026?
Based on GuruFocus' analysis, Guangzhou Baiyunshan Pharmaceutical Holdings Co stock appears to be undervalued.
The current stock price of €1.57 is trading 32.6% below its estimated GF Value™ of €2.33.
GuruFocus considers Guangzhou Baiyunshan Pharmaceutical Holdings Co to be Significantly Undervalued.
Key valuation signals for FRA:GU5:
ROC %: 15.59%
GF Value™: €2.33 vs. price of €1.57 (32.6% below fair value)
Industry Position: 187.4% above the Medical Distribution median
No single metric tells the full story. See the FRA:GU5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guangzhou Baiyunshan Pharmaceutical Holdings Co Business Description
Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd is engaged in the pharmaceutical and healthcare industry, focusing on the development of a full industrial chain covering research, manufacturing, and distribution. The group operates through five reportable segments. The Modern Chinese Medicine segment involves the R&D, manufacturing, and sale of proprietary Chinese and natural medicines. The Chemical Pharmaceutical Technology segment focuses on chemical drugs, APIs, and intermediates. The Natural Beverages segment produces and sells health-oriented beverage products. The Pharmaceutical Commerce segment is engaged in the wholesale, retail, and import/export of medicines and medical devices. The Other Segments include biotechnology innovation, consumer health, and medical services.
68GF Score
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