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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 Gingko Education Group Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 12.78%.
As of today (2026-09-10), China Gingko Education Group Co's WACC % is 4.00%. China Gingko Education Group Co's ROC % is 11.06% (calculated using TTM income statement data).
China Gingko Education Group Co 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.
China Gingko Education Group Co (HKSE:01851) 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 Gingko Education Group Co's WACC % is 4.00%. China Gingko Education Group Co's ROC % is 11.06% (calculated using TTM income statement data).
China Gingko Education Group Co 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.
China Gingko Education Group Co ROC % Related Terms
China Gingko Education Group Co 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 (Jun. 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.
China Gingko Education Group Co (HKSE:01851) has a ROC % of 12.78% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on China Gingko Education Group Co and its competitors.
Is China Gingko Education Group Co's ROC % too high?
China Gingko Education Group Co's current ROC % is 12.78%. The Education industry median ROC % is 4.94. China Gingko Education Group Co's value of 12.78% is 158.7% above this industry median. Overall, China Gingko Education Group Co has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Gingko Education Group Co's ROC % compare to EDU and TAL?
China Gingko Education Group Co's ROC % of 12.78% can be compared against companies in the Education industry. The industry median ROC % is 4.94. China Gingko Education Group Co's value of 12.78% is 158.7% 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 4.94, based on 260 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 Gingko Education Group Co's current ROC % of 12.78% is 158.7% 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 China Gingko Education Group Co and its competitors. For the Education industry, the median ROC % is 4.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Gingko Education Group Co's current ROC % is 12.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Gingko Education Group Co stock overvalued right now?
Based on GuruFocus' analysis, China Gingko Education Group Co (HKSE:01851) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.33, compared to a current price of HK$8.02 — trading 503% above its estimated fair value. The current ROC % is 12.78% and 158.7% above the Education industry median of 4.94. China Gingko Education Group Co's overall GF Score™ is 67/100 with 4 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 Gingko Education Group Co (HKSE:01851), the current ROC % is 12.78% as of Jun. 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 China Gingko Education Group Co (HKSE:01851) Overvalued in 2026?
Based on GuruFocus' analysis, China Gingko Education Group Co stock appears to be overvalued.
The current stock price of HK$8.02 is trading 503% above its estimated GF Value™ of HK$1.33.
GuruFocus considers China Gingko Education Group Co to be Significantly Overvalued.
Key valuation signals for HKSE:01851:
ROC %: 12.78%
GF Value™: HK$1.33 vs. price of HK$8.02 (503% above fair value)
Industry Position: 158.7% above the Education median
No single metric tells the full story. See the HKSE:01851 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Gingko Education Group Co Ltd is an investment holding company. The company and its subsidiaries are higher education and vocational training service providers in Sichuan Province. The company offers undergraduate majors and college diplomas. The group derives its revenue mainly from tuition fees and boarding fees.
67GF Score
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