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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 %. Pharmaron Beijing Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 5.98%.
As of today (2026-07-26), Pharmaron Beijing Co's WACC % is 15.85%. Pharmaron Beijing Co's ROC % is 8.21% (calculated using TTM income statement data).
Pharmaron Beijing Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Pharmaron Beijing Co (HKSE:03759) 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, Pharmaron Beijing Co's WACC % is 15.85%. Pharmaron Beijing Co's ROC % is 8.21% (calculated using TTM income statement data).
Pharmaron Beijing 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 (Mar. 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.
Pharmaron Beijing Co (HKSE:03759) has a ROC % of 5.98% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Pharmaron Beijing Co and its competitors.
Is Pharmaron Beijing Co's ROC % too high?
Pharmaron Beijing Co's current ROC % is 5.98%. Overall, Pharmaron Beijing Co has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pharmaron Beijing Co's ROC % compare to VRTX and REGN?
Pharmaron Beijing Co's ROC % of 5.98% can be compared against companies in the Biotechnology industry. 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 Biotechnology company?
A good ROC % depends on the Biotechnology industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Pharmaron Beijing Co and its competitors. Pharmaron Beijing Co's current ROC % is 5.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pharmaron Beijing Co stock overvalued right now?
Based on GuruFocus' analysis, Pharmaron Beijing Co (HKSE:03759) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$20.47, compared to a current price of HK$23.66 — trading 15.6% above its estimated fair value. The current ROC % is 5.98%. Pharmaron Beijing Co's overall GF Score™ is 93/100 with 9 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 Pharmaron Beijing Co (HKSE:03759), the current ROC % is 5.98% as of Mar. 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 Pharmaron Beijing Co (HKSE:03759) Overvalued in 2026?
Based on GuruFocus' analysis, Pharmaron Beijing Co stock appears to be overvalued.
The current stock price of HK$23.66 is trading 15.6% above its estimated GF Value™ of HK$20.47.
GuruFocus considers Pharmaron Beijing Co to be Modestly Overvalued.
Key valuation signals for HKSE:03759:
ROC %: 5.98%
GF Value™: HK$20.47 vs. price of HK$23.66 (15.6% above fair value)
No single metric tells the full story. See the HKSE:03759 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pharmaron Beijing Co Ltd is a research and development service company supporting the life science industry. The company offers drug research and development service capabilities, ranging from synthetic, medicinal, and analytical chemistry, biology, DMPK, pharmacology, drug safety assessment, radiochemistry, and isotopically labelled metabolism, chemical and pharmaceutical development to clinical development. Its operating segment includes Laboratory services; CMC (small molecule CDMO) services, Clinical development services, and biologics and CGT services. It generates maximum revenue from the Laboratory services segment.
93GF Score
Get the complete analysis for HKSE:03759
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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