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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 %. Beijing Tong Ren Tang Chinese Medicine Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 17.71%.
As of today (2026-07-19), Beijing Tong Ren Tang Chinese Medicine Co's WACC % is 7.71%. Beijing Tong Ren Tang Chinese Medicine Co's ROC % is 17.89% (calculated using TTM income statement data).
Beijing Tong Ren Tang Chinese Medicine 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.
Beijing Tong Ren Tang Chinese Medicine Co (HKSE:03613) 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, Beijing Tong Ren Tang Chinese Medicine Co's WACC % is 7.71%. Beijing Tong Ren Tang Chinese Medicine Co's ROC % is 17.89% (calculated using TTM income statement data).
Beijing Tong Ren Tang Chinese Medicine 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.
Beijing Tong Ren Tang Chinese Medicine Co ROC % Related Terms
Beijing Tong Ren Tang Chinese Medicine 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.
Beijing Tong Ren Tang Chinese Medicine Co ROC % Chart
Beijing Tong Ren Tang Chinese Medicine Co Annual Data
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.
Beijing Tong Ren Tang Chinese Medicine Co (HKSE:03613) has a ROC % of 17.71% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Beijing Tong Ren Tang Chinese Medicine Co and its competitors.
Is Beijing Tong Ren Tang Chinese Medicine Co's ROC % too high?
Beijing Tong Ren Tang Chinese Medicine Co's current ROC % is 17.71%. The Drug Manufacturers industry median ROC % is 4.44. Beijing Tong Ren Tang Chinese Medicine Co's value of 17.71% is 298.9% above this industry median. Overall, Beijing Tong Ren Tang Chinese Medicine Co has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Beijing Tong Ren Tang Chinese Medicine Co's ROC % compare to ZTS and UTHR?
Beijing Tong Ren Tang Chinese Medicine Co's ROC % of 17.71% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.44. Beijing Tong Ren Tang Chinese Medicine Co's value of 17.71% is 298.9% 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 Drug Manufacturers company?
The median ROC % among Drug Manufacturers companies is 4.44, based on 989 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. Beijing Tong Ren Tang Chinese Medicine Co's current ROC % of 17.71% is 298.9% 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 Beijing Tong Ren Tang Chinese Medicine Co and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beijing Tong Ren Tang Chinese Medicine Co's current ROC % is 17.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beijing Tong Ren Tang Chinese Medicine Co stock overvalued right now?
Based on GuruFocus' analysis, Beijing Tong Ren Tang Chinese Medicine Co (HKSE:03613) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$9.64, compared to a current price of HK$6.90 — trading 28.4% below its estimated fair value. The current ROC % is 17.71% and 298.9% above the Drug Manufacturers industry median of 4.44. Beijing Tong Ren Tang Chinese Medicine Co's overall GF Score™ is 89/100 with 3 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 Beijing Tong Ren Tang Chinese Medicine Co (HKSE:03613), the current ROC % is 17.71% 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 Beijing Tong Ren Tang Chinese Medicine Co (HKSE:03613) Overvalued in 2026?
Based on GuruFocus' analysis, Beijing Tong Ren Tang Chinese Medicine Co stock appears to be undervalued.
The current stock price of HK$6.90 is trading 28.4% below its estimated GF Value™ of HK$9.64.
GuruFocus considers Beijing Tong Ren Tang Chinese Medicine Co to be Modestly Undervalued.
Key valuation signals for HKSE:03613:
ROC %: 17.71%
GF Value™: HK$9.64 vs. price of HK$6.90 (28.4% below fair value)
Industry Position: 298.9% above the Drug Manufacturers median
No single metric tells the full story. See the HKSE:03613 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Beijing Tong Ren Tang Chinese Medicine Co Business Description
Beijing Tong Ren Tang Chinese Medicine Co Ltd is a pharmaceutical retailer that specializes in Chinese medicine operating in three segments; Hong Kong includes the sale of Chinese medicine products and healthcare products and the provision of Chinese medical consultation and treatments through retail and wholesale of Chinese medicine products and healthcare products; Chinese Mainland (PRC, but excluding Hong Kong, Macao, and Taiwan) includes wholesale of healthcare products in Chinese Mainland and the sole distributor of Tong Ren Tang branded products of Tong Ren Tang Technologies and Tong Ren Tang Ltd; and Overseas includes retail and wholesale of Chinese medicine products and healthcare products and provision of Chinese medical consultation and treatments.
89GF Score
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