ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Zhuzhou CRRC Times Electric Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 5.40%.
As of today (2026-06-27), Zhuzhou CRRC Times Electric Co's WACC % is 9.94%. Zhuzhou CRRC Times Electric Co's ROC % is 8.53% (calculated using TTM income statement data).
Zhuzhou CRRC Times Electric Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Zhuzhou CRRC Times Electric Co (FRA:ZTX) 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, Zhuzhou CRRC Times Electric Co's WACC % is 9.94%. Zhuzhou CRRC Times Electric Co's ROC % is 8.53% (calculated using TTM income statement data).
Zhuzhou CRRC Times Electric Co 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.
Zhuzhou CRRC Times Electric Co ROC % Related Terms
Zhuzhou CRRC Times Electric 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.
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.
Zhuzhou CRRC Times Electric Co (FRA:ZTX) has a ROC % of 5.40% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Zhuzhou CRRC Times Electric Co and its competitors.
Is Zhuzhou CRRC Times Electric Co's ROC % too high?
Zhuzhou CRRC Times Electric Co's current ROC % is 5.40%. The Transportation industry median ROC % is 4.69. Zhuzhou CRRC Times Electric Co's value of 5.40% is 15.1% above this industry median. Overall, Zhuzhou CRRC Times Electric Co has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhuzhou CRRC Times Electric Co's ROC % compare to UNP and CSX?
Zhuzhou CRRC Times Electric Co's ROC % of 5.40% can be compared against companies in the Transportation industry. The industry median ROC % is 4.69. Zhuzhou CRRC Times Electric Co's value of 5.40% is 15.1% 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 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. Zhuzhou CRRC Times Electric Co's current ROC % of 5.40% is 15.1% 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 Zhuzhou CRRC Times Electric 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. Zhuzhou CRRC Times Electric Co's current ROC % is 5.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhuzhou CRRC Times Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Zhuzhou CRRC Times Electric Co (FRA:ZTX) is currently considered Modestly Undervalued. The stock's GF Value™ is €4.88, compared to a current price of €4.24 — trading 13.1% below its estimated fair value. The current ROC % is 5.40% and 15.1% above the Transportation industry median of 4.69. Zhuzhou CRRC Times Electric Co's overall GF Score™ is 91/100 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 Zhuzhou CRRC Times Electric Co (FRA:ZTX), the current ROC % is 5.40% 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 Zhuzhou CRRC Times Electric Co (FRA:ZTX) Overvalued in 2026?
Based on GuruFocus' analysis, Zhuzhou CRRC Times Electric Co stock appears to be undervalued.
The current stock price of €4.24 is trading 13.1% below its estimated GF Value™ of €4.88.
GuruFocus considers Zhuzhou CRRC Times Electric Co to be Modestly Undervalued.
Key valuation signals for FRA:ZTX:
ROC %: 5.40%
GF Value™: €4.88 vs. price of €4.24 (13.1% below fair value)
Industry Position: 15.1% above the Transportation median
No single metric tells the full story. See the FRA:ZTX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhuzhou CRRC Times Electric Co Business Description
Zhuzhou CRRC Times Electric Co Ltd is in the R&D, design, manufacturing, and sales of rail transit equipment products and the provision of related services, and has an industrial structure of components, systems, and complete machines. Its products mainly include rail transit electrical equipment, railway engineering machinery, communication signal systems, and others. Meanwhile, the Company actively expands to industries other than rail transit and conducts business in the fields of semiconductors, automobiles, new energy, marine, and industrial operations. The Company operates in the domestic market and overseas markets.
91GF Score
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