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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 %. Zhuguang Holdings Group Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 0.41%.
As of today (2026-08-18), Zhuguang Holdings Group Co's WACC % is 6.41%. Zhuguang Holdings Group Co's ROC % is 3.00% (calculated using TTM income statement data).
Zhuguang Holdings Group Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Zhuguang Holdings Group Co (HKSE:01176) 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, Zhuguang Holdings Group Co's WACC % is 6.41%. Zhuguang Holdings Group Co's ROC % is 3.00% (calculated using TTM income statement data).
Zhuguang Holdings Group 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.
* 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.
Zhuguang Holdings Group Co (HKSE:01176) has a ROC % of 0.41% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Zhuguang Holdings Group Co and its competitors.
Is Zhuguang Holdings Group Co's ROC % too high?
Zhuguang Holdings Group Co's current ROC % is 0.41%. The Real Estate industry median ROC % is 2.13. Zhuguang Holdings Group Co's value of 0.41% is 80.8% below this industry median.
How does Zhuguang Holdings Group Co's ROC % compare to CBRE and BEKE?
Zhuguang Holdings Group Co's ROC % of 0.41% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.13. Zhuguang Holdings Group Co's value of 0.41% is 80.8% 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 Real Estate company?
The median ROC % among Real Estate companies is 2.13, based on 1,762 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. Zhuguang Holdings Group Co's current ROC % of 0.41% is 80.8% 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 Zhuguang Holdings Group Co and its competitors. For the Real Estate industry, the median ROC % is 2.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhuguang Holdings Group Co's current ROC % is 0.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhuguang Holdings Group Co stock overvalued right now?
Based on GuruFocus' analysis, Zhuguang Holdings Group Co (HKSE:01176) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.05, compared to a current price of HK$0.02 — trading 56% below its estimated fair value. The current ROC % is 0.41% and 80.8% below the Real Estate industry median of 2.13. 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 Zhuguang Holdings Group Co (HKSE:01176), the current ROC % is 0.41% 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.
Zhuguang Holdings Group Co Ltd is an investment holding company. It operates through the following segments: The property development segment, which engages in the development and sale of properties; the project management services segment, which generates maximum revenue, engages in the provision of project management services to property development projects and urban redevelopment projects; and the property investment and hotel operation segment invests in properties for rental income potential and/or capital appreciation and engages in hotel operation. The Group's key projects include Zhuguang Yujing Scenic Garden, Pearl Yijing, Pearl Tianhu Yujing Garden, Zhuguang Financial Town One, Pearl Xincheng Yujing, and many others. The Company generates revenue from Mainland China.
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