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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 %. Gaodi Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -55.14%.
As of today (2026-07-31), Gaodi Holdings's WACC % is 2.10%. Gaodi Holdings's ROC % is -48.89% (calculated using TTM income statement data).
Gaodi 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, Gaodi Holdings's WACC % is 2.10%. Gaodi Holdings's ROC % is -48.89% (calculated using TTM income statement data).
Gaodi 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.
Gaodi Holdings ROC % Related Terms
Gaodi Holdings ROC % Historical Data
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The historical data trend for Gaodi Holdings's ROC % can be seen below:
* 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.
Gaodi Holdings (HKSE:01676) has a ROC % of -55.14% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Gaodi Holdings and its competitors.
Is Gaodi Holdings' ROC % too high?
Gaodi Holdings' current ROC % is -55.14%. Overall, Gaodi Holdings has a GF Score™ of 47/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Gaodi Holdings' ROC % compare to KHC and GIS?
Gaodi Holdings' ROC % of -55.14% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROC % is 5.22. 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 Consumer Packaged Goods company?
The median ROC % among Consumer Packaged Goods companies is 5.22, based on 1,950 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 Gaodi Holdings and its competitors. For the Consumer Packaged Goods industry, the median ROC % is 5.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gaodi Holdings's current ROC % is -55.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gaodi Holdings stock overvalued right now?
Based on GuruFocus' analysis, Gaodi Holdings (HKSE:01676) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.83, compared to a current price of HK$0.21 — trading 75.2% below its estimated fair value. The current ROC % is -55.14%. Gaodi Holdings' overall GF Score™ is 47/100 with 7 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 Gaodi Holdings (HKSE:01676), the current ROC % is -55.14% 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 Gaodi Holdings (HKSE:01676) Overvalued in 2026?
Based on GuruFocus' analysis, Gaodi Holdings stock appears to be undervalued.
The current stock price of HK$0.21 is trading 75.2% below its estimated GF Value™ of HK$0.83.
GuruFocus considers Gaodi Holdings to be Possible Value Trap.
Key valuation signals for HKSE:01676:
ROC %: -55.14%
GF Value™: HK$0.83 vs. price of HK$0.21 (75.2% below fair value)
No single metric tells the full story. See the HKSE:01676 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gaodi Holdings Ltd formerly China Shenghai Group Ltd is engaged in the packaging and sales of seafood products and procurement and sales of fast moving consumer goods and others to the supermarket chains and convenience stores located across China. The company's products are categorized into dried seafood, algae and fungi, seafood snack and frozen seafood products. It has also developed new business on FMCG and cosmetics in Hong Kong and China. Its operating segments include packaging and sales of food products segment and all other segment. It derives majority of the revenue from packaging and sales of food products segment.
47GF Score
Get the complete analysis for HKSE:01676
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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