Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Pa Shun International Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 8.39%.
As of today (2026-08-20), Pa Shun International Holdings's WACC % is 22.45%. Pa Shun International Holdings's ROC % is 2.96% (calculated using TTM income statement data).
Pa Shun International Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Pa Shun International Holdings (HKSE:00574) 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, Pa Shun International Holdings's WACC % is 22.45%. Pa Shun International Holdings's ROC % is 2.96% (calculated using TTM income statement data).
Pa Shun International 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.
Pa Shun International Holdings ROC % Related Terms
Pa Shun International 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.
Pa Shun International Holdings (HKSE:00574) has a ROC % of 8.39% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Pa Shun International Holdings and its competitors.
Is Pa Shun International Holdings' ROC % too high?
Pa Shun International Holdings' current ROC % is 8.39%. The Healthcare Providers & Services industry median ROC % is 3.27. Pa Shun International Holdings' value of 8.39% is 157% above this industry median.
How does Pa Shun International Holdings' ROC % compare to competitors?
Pa Shun International Holdings' ROC % of 8.39% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROC % is 3.27. Pa Shun International Holdings' value of 8.39% is 157% 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 Healthcare Providers & Services company?
The median ROC % among Healthcare Providers & Services companies is 3.27, based on 670 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. Pa Shun International Holdings's current ROC % of 8.39% is 157% 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 Pa Shun International Holdings and its competitors. For the Healthcare Providers & Services industry, the median ROC % is 3.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pa Shun International Holdings's current ROC % is 8.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pa Shun International Holdings stock overvalued right now?
Based on GuruFocus' analysis, Pa Shun International Holdings (HKSE:00574) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.03, compared to a current price of HK$0.02 — trading 40% below its estimated fair value. The current ROC % is 8.39% and 157% above the Healthcare Providers & Services industry median of 3.27. 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 Pa Shun International Holdings (HKSE:00574), the current ROC % is 8.39% 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.
Pa Shun International Holdings Ltd is an investment holding company engaged in the manufacturing and distribution of pharmaceutical products. The business activity of the group is operated through Pharmaceutical distribution and Pharmaceutical manufacturing segment. Geographically all the activities are carried out in the PRC. The company derives the majority of revenue from the Pharmaceutical distribution segment which include sales of pharmaceutical products to wholesalers, franchise retail pharmacy chain stores and hospitals and other medical institutions in rural areas.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:00574 has been successfully added to your 
