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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 %. Wing On Co International's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 0.88%.
As of today (2026-08-17), Wing On Co International's WACC % is 5.96%. Wing On Co International's ROC % is 1.01% (calculated using TTM income statement data).
Wing On Co International earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Wing On Co International (HKSE:00289) 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, Wing On Co International's WACC % is 5.96%. Wing On Co International's ROC % is 1.01% (calculated using TTM income statement data).
Wing On Co International 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 (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.
Wing On Co International (HKSE:00289) has a ROC % of 0.88% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Wing On Co International and its competitors.
Is Wing On Co International's ROC % too high?
Wing On Co International's current ROC % is 0.88%. The Retail - Cyclical industry median ROC % is 4.37. Wing On Co International's value of 0.88% is 79.8% below this industry median. Overall, Wing On Co International has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Wing On Co International's ROC % compare to DDS?
Wing On Co International's ROC % of 0.88% can be compared against companies in the Retail - Cyclical industry. The industry median ROC % is 4.37. Wing On Co International's value of 0.88% is 79.8% 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 Retail - Cyclical company?
The median ROC % among Retail - Cyclical companies is 4.37, based on 1,124 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. Wing On Co International's current ROC % of 0.88% is 79.8% 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 Wing On Co International and its competitors. For the Retail - Cyclical industry, the median ROC % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wing On Co International's current ROC % is 0.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wing On Co International stock overvalued right now?
Based on GuruFocus' analysis, Wing On Co International (HKSE:00289) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$9.98, compared to a current price of HK$13.36 — trading 33.9% above its estimated fair value. The current ROC % is 0.88% and 79.8% below the Retail - Cyclical industry median of 4.37. Wing On Co International's overall GF Score™ is 64/100 with 4 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 Wing On Co International (HKSE:00289), the current ROC % is 0.88% 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 Wing On Co International (HKSE:00289) Overvalued in 2026?
Based on GuruFocus' analysis, Wing On Co International stock appears to be overvalued.
The current stock price of HK$13.36 is trading 33.9% above its estimated GF Value™ of HK$9.98.
GuruFocus considers Wing On Co International to be Significantly Overvalued.
Key valuation signals for HKSE:00289:
ROC %: 0.88%
GF Value™: HK$9.98 vs. price of HK$13.36 (33.9% above fair value)
Industry Position: 79.8% below the Retail - Cyclical median
No single metric tells the full story. See the HKSE:00289 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wing On Co International Ltd operates department stores. It also invests in properties. The company has two segments, namely, Department Stores and Property Investment. The department stores segment operates department stores in Hong Kong, while the Property Investment segment engages in leasing commercial premises to generate rental income. Its investment property portfolio is spread across Hong Kong, Australia, the United States of America, and Mainland China. The firm derives the majority of its revenues from the department stores segment.
64GF Score
Get the complete analysis for HKSE:00289
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