ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Mediwelcome Healthcare Management & Technology's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 21.13%.
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, Mediwelcome Healthcare Management & Technology's WACC % is 6.81%. Mediwelcome Healthcare Management & Technology's ROC % is 2.22% (calculated using TTM income statement data).
Mediwelcome Healthcare Management & Technology 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.
Mediwelcome Healthcare Management & Technology ROC % Related Terms
Mediwelcome Healthcare Management & Technology 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.
Mediwelcome Healthcare Management & Technology (HKSE:02159) has a ROC % of 21.13% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Mediwelcome Healthcare Management & Technology and its competitors.
Is Mediwelcome Healthcare Management & Technology's ROC % too high?
Mediwelcome Healthcare Management & Technology's current ROC % is 21.13%. The Healthcare Providers & Services industry median ROC % is 3.08. Mediwelcome Healthcare Management & Technology's value of 21.13% is 587.2% above this industry median. Overall, Mediwelcome Healthcare Management & Technology has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mediwelcome Healthcare Management & Technology's ROC % compare to VEEV and BTSG?
Mediwelcome Healthcare Management & Technology's ROC % of 21.13% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROC % is 3.08. Mediwelcome Healthcare Management & Technology's value of 21.13% is 587.2% 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 Healthcare Providers & Services company?
The median ROC % among Healthcare Providers & Services companies is 3.08, based on 670 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. Mediwelcome Healthcare Management & Technology's current ROC % of 21.13% is 587.2% 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 Mediwelcome Healthcare Management & Technology and its competitors. For the Healthcare Providers & Services industry, the median ROC % is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mediwelcome Healthcare Management & Technology's current ROC % is 21.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mediwelcome Healthcare Management & Technology stock overvalued right now?
Based on GuruFocus' analysis, Mediwelcome Healthcare Management & Technology (HKSE:02159) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.69, compared to a current price of HK$1.61 — trading 133.3% above its estimated fair value. The current ROC % is 21.13% and 587.2% above the Healthcare Providers & Services industry median of 3.08. Mediwelcome Healthcare Management & Technology's overall GF Score™ is 54/100 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 Mediwelcome Healthcare Management & Technology (HKSE:02159), the current ROC % is 21.13% 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 Mediwelcome Healthcare Management & Technology (HKSE:02159) Overvalued in 2026?
Based on GuruFocus' analysis, Mediwelcome Healthcare Management & Technology stock appears to be overvalued.
The current stock price of HK$1.61 is trading 133.3% above its estimated GF Value™ of HK$0.69.
GuruFocus considers Mediwelcome Healthcare Management & Technology to be Significantly Overvalued.
Key valuation signals for HKSE:02159:
ROC %: 21.13%
GF Value™: HK$0.69 vs. price of HK$1.61 (133.3% above fair value)
Industry Position: 587.2% above the Healthcare Providers & Services median
No single metric tells the full story. See the HKSE:02159 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mediwelcome Healthcare Management & Technology Business Description
Mediwelcome Healthcare Management & Technology Inc is an investment holding company. The Group mainly provides medical conference services, patient education and screening services, and marketing and consulting services, in addition to providing integrated healthcare marketing solutions. Its products and services include Academic Conference Management System, Scientific Research Data Reporting System, the Health/Medical Media Matrix, patient management services, and marketing and consulting services. The Group has only one reportable segment, mainly operating its businesses in the PRC and earning revenue from the PRC.
54GF Score
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