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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 %. Beijing Enterprises Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 1.00%.
As of today (2026-08-28), Beijing Enterprises Holdings's WACC % is 4.59%. Beijing Enterprises Holdings's ROC % is 1.90% (calculated using TTM income statement data).
Beijing Enterprises Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Beijing Enterprises Holdings's WACC % is 4.59%. Beijing Enterprises Holdings's ROC % is 1.90% (calculated using TTM income statement data).
Beijing Enterprises 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.
Beijing Enterprises Holdings ROC % Related Terms
Beijing Enterprises 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.
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.
Beijing Enterprises Holdings (HKSE:00392) has a ROC % of 1.00% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Beijing Enterprises Holdings and its competitors.
Is Beijing Enterprises Holdings' ROC % too high?
Beijing Enterprises Holdings' current ROC % is 1.00%. The Conglomerates industry median ROC % is 3.15. Beijing Enterprises Holdings' value of 1.00% is 68.3% below this industry median. Overall, Beijing Enterprises Holdings has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Beijing Enterprises Holdings' ROC % compare to MMM and HON?
Beijing Enterprises Holdings' ROC % of 1.00% can be compared against companies in the Conglomerates industry. The industry median ROC % is 3.15. Beijing Enterprises Holdings' value of 1.00% is 68.3% 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 Conglomerates company?
The median ROC % among Conglomerates companies is 3.15, based on 537 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. Beijing Enterprises Holdings's current ROC % of 1.00% is 68.3% 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 Beijing Enterprises Holdings and its competitors. For the Conglomerates industry, the median ROC % is 3.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beijing Enterprises Holdings's current ROC % is 1.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beijing Enterprises Holdings stock overvalued right now?
Based on GuruFocus' analysis, Beijing Enterprises Holdings (HKSE:00392) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$24.00, compared to a current price of HK$31.10 — trading 29.6% above its estimated fair value. The current ROC % is 1.00% and 68.3% below the Conglomerates industry median of 3.15. Beijing Enterprises Holdings' overall GF Score™ is 69/100 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 Beijing Enterprises Holdings (HKSE:00392), the current ROC % is 1.00% 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 Beijing Enterprises Holdings (HKSE:00392) Overvalued in 2026?
Based on GuruFocus' analysis, Beijing Enterprises Holdings stock appears to be overvalued.
The current stock price of HK$31.10 is trading 29.6% above its estimated GF Value™ of HK$24.00.
GuruFocus considers Beijing Enterprises Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:00392:
ROC %: 1.00%
GF Value™: HK$24.00 vs. price of HK$31.10 (29.6% above fair value)
Industry Position: 68.3% below the Conglomerates median
No single metric tells the full story. See the HKSE:00392 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Beijing Enterprises Holdings Ltd is an investment holding company. Its reportable operating segments are Gas operation segment engages in the distribution and sale of piped natural gas and gas-related equipment, the provision of natural gas transmission; Water operation segment engages in the construction of sewage and water treatment plants and other infrastructural facilities; Environmental operation segment comprises the provision of waste incineration plant construction and waste treatment services; Brewery operation segment produces, distributes and sells brewery products; Others segment comprises the provision of consultation services, property investment and corporate income of which majority of revenue comes from Gas operation. Geographically revenue comes from Chinese Mainland.
69GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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