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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 %. Natural Food International Holding's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 61.19%.
As of today (2026-07-21), Natural Food International Holding's WACC % is 6.56%. Natural Food International Holding's ROC % is 51.38% (calculated using TTM income statement data).
Natural Food International Holding generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Natural Food International Holding (HKSE:01837) 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, Natural Food International Holding's WACC % is 6.56%. Natural Food International Holding's ROC % is 51.38% (calculated using TTM income statement data).
Natural Food International Holding generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Natural Food International Holding ROC % Related Terms
Natural Food International Holding 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.
Natural Food International Holding (HKSE:01837) has a ROC % of 61.19% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Natural Food International Holding and its competitors.
Is Natural Food International Holding's ROC % too high?
Natural Food International Holding's current ROC % is 61.19%. The Consumer Packaged Goods industry median ROC % is 5.22. Natural Food International Holding's value of 61.19% is 1072.2% above this industry median. Overall, Natural Food International Holding has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Natural Food International Holding's ROC % compare to KHC and GIS?
Natural Food International Holding's ROC % of 61.19% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROC % is 5.22. Natural Food International Holding's value of 61.19% is 1072.2% 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 a Consumer Packaged Goods company?
The median ROC % among Consumer Packaged Goods companies is 5.22, based on 1,951 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. Natural Food International Holding's current ROC % of 61.19% is 1072.2% 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 Natural Food International Holding 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. Natural Food International Holding's current ROC % is 61.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natural Food International Holding stock overvalued right now?
Based on GuruFocus' analysis, Natural Food International Holding (HKSE:01837) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.80, compared to a current price of HK$1.72 — trading 115% above its estimated fair value. The current ROC % is 61.19% and 1072.2% above the Consumer Packaged Goods industry median of 5.22. Natural Food International Holding's overall GF Score™ is 64/100 with 6 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 Natural Food International Holding (HKSE:01837), the current ROC % is 61.19% 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 Natural Food International Holding (HKSE:01837) Overvalued in 2026?
Based on GuruFocus' analysis, Natural Food International Holding stock appears to be overvalued.
The current stock price of HK$1.72 is trading 115% above its estimated GF Value™ of HK$0.80.
GuruFocus considers Natural Food International Holding to be Significantly Overvalued.
Key valuation signals for HKSE:01837:
ROC %: 61.19%
GF Value™: HK$0.80 vs. price of HK$1.72 (115% above fair value)
Industry Position: 1072.2% above the Consumer Packaged Goods median
No single metric tells the full story. See the HKSE:01837 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natural Food International Holding Business Description
Natural Food International Holding Ltd is an investment holding company. The company is principally engaged in processing and selling natural health food in the People's Republic of China. The Group operates within one geographical location Chinese Mainland. The Group sells its products through an extensive network of offline channels, including supermarket counter business and offline shelf business, as well as online channels, including e-commerce platforms and WeChat member stores.
64GF Score
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