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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 %. Qingdao Gon Technology Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 16.31%.
As of today (2026-09-03), Qingdao Gon Technology Co's WACC % is 13.26%. Qingdao Gon Technology Co's ROC % is 12.17% (calculated using TTM income statement data).
Qingdao Gon Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Qingdao Gon Technology Co (HKSE:02768) 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, Qingdao Gon Technology Co's WACC % is 13.26%. Qingdao Gon Technology Co's ROC % is 12.17% (calculated using TTM income statement data).
Qingdao Gon Technology Co 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.
* 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 four times the quarterly (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.
Qingdao Gon Technology Co (HKSE:02768) has a ROC % of 16.31% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Qingdao Gon Technology Co and its competitors.
Is Qingdao Gon Technology Co's ROC % too high?
Qingdao Gon Technology Co's current ROC % is 16.31%. The Chemicals industry median ROC % is 5.10. Qingdao Gon Technology Co's value of 16.31% is 219.8% above this industry median. Overall, Qingdao Gon Technology Co has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Qingdao Gon Technology Co's ROC % compare to LIN and SHW?
Qingdao Gon Technology Co's ROC % of 16.31% can be compared against companies in the Chemicals industry. The industry median ROC % is 5.10. Qingdao Gon Technology Co's value of 16.31% is 219.8% 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 a Chemicals company?
The median ROC % among Chemicals companies is 5.10, based on 1,583 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. Qingdao Gon Technology Co's current ROC % of 16.31% is 219.8% 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 Qingdao Gon Technology Co and its competitors. For the Chemicals industry, the median ROC % is 5.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Qingdao Gon Technology Co's current ROC % is 16.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Qingdao Gon Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Qingdao Gon Technology Co (HKSE:02768) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$18.12, compared to a current price of HK$38.22 — trading 110.9% above its estimated fair value. The current ROC % is 16.31% and 219.8% above the Chemicals industry median of 5.10. Qingdao Gon Technology Co's overall GF Score™ is 59/100 with 8 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 Qingdao Gon Technology Co (HKSE:02768), the current ROC % is 16.31% 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 Qingdao Gon Technology Co (HKSE:02768) Overvalued in 2026?
Based on GuruFocus' analysis, Qingdao Gon Technology Co stock appears to be overvalued.
The current stock price of HK$38.22 is trading 110.9% above its estimated GF Value™ of HK$18.12.
GuruFocus considers Qingdao Gon Technology Co to be Significantly Overvalued.
Key valuation signals for HKSE:02768:
ROC %: 16.31%
GF Value™: HK$18.12 vs. price of HK$38.22 (110.9% above fair value)
Industry Position: 219.8% above the Chemicals median
No single metric tells the full story. See the HKSE:02768 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Qingdao Gon Technology Co Ltd is engaged in the production and sales of modified plastic particles, modified plastic products, and functional plastic plates. Modified plastic particles mainly include series of flame-retardant, weatherproof, reinforced, heat-resistant, high-brightness and other plastic alloys. The company products include air-conditioner components, washing machine components, TV rear cover, air-conditioner panel, and others. It has two business segments, namely, new chemical materials segment; and health and wellness segment. The company derives maximum revenue from the new chemical materials segment. Geographically, the company operates in Chinese Mainland; and Overseas, of which majority revenue is generated from Chinese Mainland.
59GF Score
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