ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Tianli International Holdings's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 8.73%.
As of today (2026-07-12), Tianli International Holdings's WACC % is 7.92%. Tianli International Holdings's ROC % is 6.89% (calculated using TTM income statement data).
Tianli International Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Tianli International Holdings (HKSE:01773) 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, Tianli International Holdings's WACC % is 7.92%. Tianli International Holdings's ROC % is 6.89% (calculated using TTM income statement data).
Tianli 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.
Tianli International Holdings ROC % Related Terms
Tianli 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 (Feb. 2026) 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.
Tianli International Holdings (HKSE:01773) has a ROC % of 8.73% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Tianli International Holdings and its competitors.
Is Tianli International Holdings' ROC % too high?
Tianli International Holdings' current ROC % is 8.73%. The Education industry median ROC % is 5.00. Tianli International Holdings' value of 8.73% is 74.6% above this industry median. Overall, Tianli International Holdings has a GF Score™ of 80/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tianli International Holdings' ROC % compare to EDU and TAL?
Tianli International Holdings' ROC % of 8.73% can be compared against companies in the Education industry. The industry median ROC % is 5.00. Tianli International Holdings' value of 8.73% is 74.6% 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 an Education company?
The median ROC % among Education companies is 5.00, based on 259 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. Tianli International Holdings's current ROC % of 8.73% is 74.6% 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 Tianli International Holdings and its competitors. For the Education industry, the median ROC % is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tianli International Holdings's current ROC % is 8.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tianli International Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tianli International Holdings (HKSE:01773) is currently considered Possible Value Trap. The stock's GF Value™ is HK$5.40, compared to a current price of HK$1.25 — trading 76.9% below its estimated fair value. The current ROC % is 8.73% and 74.6% above the Education industry median of 5.00. Tianli International Holdings' overall GF Score™ is 80/100 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 Tianli International Holdings (HKSE:01773), the current ROC % is 8.73% as of Feb. 2026. 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 Tianli International Holdings (HKSE:01773) Overvalued in 2026?
Based on GuruFocus' analysis, Tianli International Holdings stock appears to be undervalued.
The current stock price of HK$1.25 is trading 76.9% below its estimated GF Value™ of HK$5.40.
GuruFocus considers Tianli International Holdings to be Possible Value Trap.
Key valuation signals for HKSE:01773:
ROC %: 8.73%
GF Value™: HK$5.40 vs. price of HK$1.25 (76.9% below fair value)
Industry Position: 74.6% above the Education median
No single metric tells the full story. See the HKSE:01773 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tianli International Holdings Business Description
Tianli International Holdings Ltd operates as a private education service provider in Western China. The Company provides clients with integrated education management and diversified services. Its services mainly include comprehensive education services, training services, study trip services, early childhood education services, canteen operations, management and franchise, as well as supply chain management services. The Company also offers extracurricular programs in music, arts, physical education, and languages, as well as licensing rights to its brands for early childhood centers. Geographically, it derives revenue from the PRC.
80GF Score
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