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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Liu Chong Hing Investment's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 1.02%.
As of today (2026-09-07), Liu Chong Hing Investment's WACC % is 4.72%. Liu Chong Hing Investment's ROC % is 0.89% (calculated using TTM income statement data).
Liu Chong Hing Investment earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Liu Chong Hing Investment (FRA:LIW) 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, Liu Chong Hing Investment's WACC % is 4.72%. Liu Chong Hing Investment's ROC % is 0.89% (calculated using TTM income statement data).
Liu Chong Hing Investment 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.
* 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 (Jun. 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.
Liu Chong Hing Investment (FRA:LIW) has a ROC % of 1.02% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Liu Chong Hing Investment and its competitors.
Is Liu Chong Hing Investment's ROC % too high?
Liu Chong Hing Investment's current ROC % is 1.02%. The Real Estate industry median ROC % is 2.07. Liu Chong Hing Investment's value of 1.02% is 50.6% below this industry median. Overall, Liu Chong Hing Investment has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does Liu Chong Hing Investment's ROC % compare to competitors?
Liu Chong Hing Investment's ROC % of 1.02% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.07. Liu Chong Hing Investment's value of 1.02% is 50.6% 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 Real Estate company?
The median ROC % among Real Estate companies is 2.07, based on 1,760 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. Liu Chong Hing Investment's current ROC % of 1.02% is 50.6% 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 Liu Chong Hing Investment and its competitors. For the Real Estate industry, the median ROC % is 2.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Liu Chong Hing Investment's current ROC % is 1.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Liu Chong Hing Investment stock overvalued right now?
Liu Chong Hing Investment (FRA:LIW) has a current ROC % of 1.02%. The stock's GF Value™ is €0.53, compared to a current price of €0.46 — trading 13.7% below its estimated fair value. The current ROC % is 1.02% and 50.6% below the Real Estate industry median of 2.07. Liu Chong Hing Investment's overall GF Score™ is 66/100 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 Liu Chong Hing Investment (FRA:LIW), the current ROC % is 1.02% as of Jun. 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 Liu Chong Hing Investment (FRA:LIW) Overvalued in 2026?
Based on GuruFocus' analysis, Liu Chong Hing Investment stock appears to be undervalued.
The current stock price of €0.46 is trading 13.7% below its estimated GF Value™ of €0.53.
Key valuation signals for FRA:LIW:
ROC %: 1.02%
GF Value™: €0.53 vs. price of €0.46 (13.7% below fair value)
Industry Position: 50.6% below the Real Estate median
No single metric tells the full story. See the FRA:LIW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Liu Chong Hing Investment Ltd principal activities of the Company are property investment and investment holding. It has six operating segments the Property investment includes investment and letting of properties; Property development includes development and sale of properties; Property management includes provision of property management services; Treasury investment includes dealings and investments in securities and other financial instruments; Trading and manufacturing includes manufacture and sale of magnetic products; and Hotel operation includes management and operation of hotel and food & beverage business. The company generates majority of revenue from Property development segment.
66GF Score
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