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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 %. Quantgroup Holding's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 27.96%.
As of today (2026-07-29), Quantgroup Holding's WACC % is 10.60%. Quantgroup Holding's ROC % is 27.96% (calculated using TTM income statement data).
Quantgroup 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.
Quantgroup Holding (HKSE:02685) 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, Quantgroup Holding's WACC % is 10.60%. Quantgroup Holding's ROC % is 27.96% (calculated using TTM income statement data).
Quantgroup 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.
Quantgroup Holding ROC % Related Terms
Quantgroup Holding ROC % Historical Data
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The historical data trend for Quantgroup Holding'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 one times the 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.
Quantgroup Holding (HKSE:02685) has a ROC % of 27.96% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Quantgroup Holding and its competitors.
Is Quantgroup Holding's ROC % too high?
Quantgroup Holding's current ROC % is 27.96%. The Retail - Cyclical industry median ROC % is 4.37. Quantgroup Holding's value of 27.96% is 540.5% above this industry median. Overall, Quantgroup Holding has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Quantgroup Holding's ROC % compare to AMZN and BABA?
Quantgroup Holding's ROC % of 27.96% can be compared against companies in the Retail - Cyclical industry. The industry median ROC % is 4.37. Quantgroup Holding's value of 27.96% is 540.5% 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 Retail - Cyclical company?
The median ROC % among Retail - Cyclical companies is 4.37, based on 1,116 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. Quantgroup Holding's current ROC % of 27.96% is 540.5% 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 Quantgroup Holding and its competitors. For the Retail - Cyclical industry, the median ROC % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Quantgroup Holding's current ROC % is 27.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Quantgroup Holding stock overvalued right now?
Quantgroup Holding (HKSE:02685) has a current ROC % of 27.96%. The current ROC % is 27.96% and 540.5% above the Retail - Cyclical industry median of 4.37. Quantgroup Holding's overall GF Score™ is 21/100 with 2 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 Quantgroup Holding (HKSE:02685), the current ROC % is 27.96% 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.
Quantgroup Holding Ltd is an investment holding company. The company and its subsidiaries are principally engaged in the operation of online marketplaces and other businesses, including advertisement placement and provision of matching services for financial institutions. Its consumer E-commerce marketplaces include: i) Yangxiaomie: It carries a wide spectrum of retail goods ranging from consumer electronics, food and beverages, home appliances, cosmetics, jewelry to clothing and personal daily care provided by third-party marketplace suppliers. ii) Consumption Guide: It matches end customers who purchase automobiles and, to a small extent, local lifestyle services, which are sold/provided by the marketplace suppliers in offline stores. The company derives maximum revenue from Yangxiaomie.
21GF Score
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