ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Shengli Oil & Gas Pipe Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -1.92%.
As of today (2026-07-11), Shengli Oil & Gas Pipe Holdings's WACC % is 6.47%. Shengli Oil & Gas Pipe Holdings's ROC % is -2.38% (calculated using TTM income statement data).
Shengli Oil & Gas Pipe Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Shengli Oil & Gas Pipe Holdings (HKSE:01080) 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, Shengli Oil & Gas Pipe Holdings's WACC % is 6.47%. Shengli Oil & Gas Pipe Holdings's ROC % is -2.38% (calculated using TTM income statement data).
Shengli Oil & Gas Pipe 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.
Shengli Oil & Gas Pipe Holdings ROC % Related Terms
Shengli Oil & Gas Pipe 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.
Shengli Oil & Gas Pipe Holdings (HKSE:01080) has a ROC % of -1.92% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Shengli Oil & Gas Pipe Holdings and its competitors.
Is Shengli Oil & Gas Pipe Holdings' ROC % too high?
Shengli Oil & Gas Pipe Holdings' current ROC % is -1.92%.
How does Shengli Oil & Gas Pipe Holdings' ROC % compare to SLB and BKR?
Shengli Oil & Gas Pipe Holdings' ROC % of -1.92% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.69. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Oil & Gas company?
The median ROC % among Oil & Gas companies is 3.69, based on 996 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. 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 Shengli Oil & Gas Pipe Holdings and its competitors. For the Oil & Gas industry, the median ROC % is 3.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shengli Oil & Gas Pipe Holdings's current ROC % is -1.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shengli Oil & Gas Pipe Holdings stock overvalued right now?
Based on GuruFocus' analysis, Shengli Oil & Gas Pipe Holdings (HKSE:01080) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.06, compared to a current price of HK$0.06 — trading 1.7% above its estimated fair value. The current ROC % is -1.92%. 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 Shengli Oil & Gas Pipe Holdings (HKSE:01080), the current ROC % is -1.92% 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.
Shengli Oil & Gas Pipe Holdings Business Description
Shengli Oil & Gas Pipe Holdings Ltd is an oil and gas pipe manufacturer in China. It focuses on the design, manufacturing, value-added processing, and servicing of submerged-arc helical welded pipes (SAWH pipes) and submerged-arc longitudinal welded pipes (SAWL pipes), that are used to transport crude oil, refined petroleum products, natural gas, and other related products. It operates two reportable segments which comprise the pipes business and trading business. The majority of the revenue is derived from the pipes business segment that involves the production of submerged-arc helical welded pipes and submerged-arc longitudinal welded pipes which are mainly used for the oil and infrastructure industry. Geographically it derives revenue from Mainland China and Hong Kong.
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