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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 %. China Environmental Technology and Bioenergy Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 1.36%.
China Environmental Technology and Bioenergy Holdings (HKSE:01237) 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, China Environmental Technology and Bioenergy Holdings's WACC % is 3.08%. China Environmental Technology and Bioenergy Holdings's ROC % is -1.02% (calculated using TTM income statement data).
China Environmental Technology and Bioenergy 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.
China Environmental Technology and Bioenergy Holdings ROC % Related Terms
China Environmental Technology and Bioenergy 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.
China Environmental Technology and Bioenergy Holdings ROC % Chart
China Environmental Technology and Bioenergy Holdings Annual Data
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.
China Environmental Technology and Bioenergy Holdings (HKSE:01237) has a ROC % of 1.36% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on China Environmental Technology and Bioenergy Holdings and its competitors.
Is China Environmental Technology and Bioenergy Holdings' ROC % too high?
China Environmental Technology and Bioenergy Holdings' current ROC % is 1.36%. The Furnishings, Fixtures & Appliances industry median ROC % is 3.50. China Environmental Technology and Bioenergy Holdings' value of 1.36% is 61.1% below this industry median. Overall, China Environmental Technology and Bioenergy Holdings has a GF Score™ of 27/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Environmental Technology and Bioenergy Holdings' ROC % compare to SN and SGI?
China Environmental Technology and Bioenergy Holdings' ROC % of 1.36% can be compared against companies in the Furnishings, Fixtures & Appliances industry. The industry median ROC % is 3.50. China Environmental Technology and Bioenergy Holdings' value of 1.36% is 61.1% 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 Furnishings, Fixtures & Appliances company?
The median ROC % among Furnishings, Fixtures & Appliances companies is 3.50, based on 426 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. China Environmental Technology and Bioenergy Holdings's current ROC % of 1.36% is 61.1% 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 China Environmental Technology and Bioenergy Holdings and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROC % is 3.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Environmental Technology and Bioenergy Holdings's current ROC % is 1.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Environmental Technology and Bioenergy Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Environmental Technology and Bioenergy Holdings (HKSE:01237) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.52, compared to a current price of HK$0.68 — trading 30.8% above its estimated fair value. The current ROC % is 1.36% and 61.1% below the Furnishings, Fixtures & Appliances industry median of 3.50. China Environmental Technology and Bioenergy Holdings' overall GF Score™ is 27/100 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 China Environmental Technology and Bioenergy Holdings (HKSE:01237), the current ROC % is 1.36% 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 China Environmental Technology and Bioenergy Holdings (HKSE:01237) Overvalued in 2026?
Based on GuruFocus' analysis, China Environmental Technology and Bioenergy Holdings stock appears to be overvalued.
The current stock price of HK$0.68 is trading 30.8% above its estimated GF Value™ of HK$0.52.
GuruFocus considers China Environmental Technology and Bioenergy Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01237:
ROC %: 1.36%
GF Value™: HK$0.52 vs. price of HK$0.68 (30.8% above fair value)
Industry Position: 61.1% below the Furnishings, Fixtures & Appliances median
No single metric tells the full story. See the HKSE:01237 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Environmental Technology and Bioenergy Holdings Ltd is engaged in manufacturing and sales of wooden products and manufacturing and sales of renewable energy products. Its renewable energy business focuses on the recycling of leftover sawdust from the production of wooden products into biomass pellet fuel. Its segments include the manufacturing and sales of outdoor wooden products, and manufacturing and sales of renewable energy products. It derives the majority of revenue from the manufacturing and sales of outdoor wooden products. Geographically, it operates in The People's Republic of China, Australasia, North America, Europe, and Asia Pacific (exclusive of the PRC) with majority of revenue deriving from Australasia.
27GF Score
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