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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 %. Shouhui Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 30.87%.
As of today (2026-07-14), Shouhui Group's WACC % is 10.47%. Shouhui Group's ROC % is 15.45% (calculated using TTM income statement data).
Shouhui Group 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.
Shouhui Group (HKSE:02621) 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, Shouhui Group's WACC % is 10.47%. Shouhui Group's ROC % is 15.45% (calculated using TTM income statement data).
Shouhui Group 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.
Shouhui Group ROC % Related Terms
Shouhui Group ROC % Historical Data
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The historical data trend for Shouhui Group'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.
Shouhui Group (HKSE:02621) has a ROC % of 30.87% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Shouhui Group and its competitors.
Is Shouhui Group's ROC % too high?
Shouhui Group's current ROC % is 30.87%. The Insurance industry median ROC % is 3.36. Shouhui Group's value of 30.87% is 818.8% above this industry median. Overall, Shouhui Group has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Shouhui Group's ROC % compare to MRSH and AON?
Shouhui Group's ROC % of 30.87% can be compared against companies in the Insurance industry. The industry median ROC % is 3.36. Shouhui Group's value of 30.87% is 818.8% 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 Insurance company?
The median ROC % among Insurance companies is 3.36, based on 372 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. Shouhui Group's current ROC % of 30.87% is 818.8% 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 Shouhui Group and its competitors. For the Insurance industry, the median ROC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shouhui Group's current ROC % is 30.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shouhui Group stock overvalued right now?
Shouhui Group (HKSE:02621) has a current ROC % of 30.87%. The current ROC % is 30.87% and 818.8% above the Insurance industry median of 3.36. Shouhui Group's overall GF Score™ is 18/100 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 Shouhui Group (HKSE:02621), the current ROC % is 30.87% 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.
Shouhui Group Ltd is a life and health insurance intermediary service provider in China, dedicated to providing insurance service solutions to policyholders and the insured online through life and health insurance transaction and service platforms. It distribute life and health insurance products through three distribution platforms, namely (1) online direct distribution on Xiaoyusan, (2) distribution via insurance agents on Kachabao, and (3) distribution with the assistance of business partners on Niubao 100. It operates in two reportable segments: Insurance transaction services and Insurance technology services. Key revenue is generated from Insurance transaction services which acts as the agent in distributing insurance products on behalf of the insurance companies.
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