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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 %. Town Health International Medical Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 1.88%.
Town Health International Medical Group (HKSE:03886) 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, Town Health International Medical Group's WACC % is 4.92%. Town Health International Medical Group's ROC % is 1.95% (calculated using TTM income statement data).
Town Health International Medical Group 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.
Town Health International Medical Group ROC % Related Terms
Town Health International Medical Group 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.
Town Health International Medical Group ROC % Chart
Town Health International Medical Group 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.
Town Health International Medical Group (HKSE:03886) has a ROC % of 1.88% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Town Health International Medical Group and its competitors.
Is Town Health International Medical Group's ROC % too high?
Town Health International Medical Group's current ROC % is 1.88%. The Healthcare Providers & Services industry median ROC % is 3.26. Town Health International Medical Group's value of 1.88% is 42.2% below this industry median. Overall, Town Health International Medical Group has a GF Score™ of 44/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Town Health International Medical Group's ROC % compare to HCA and THC?
Town Health International Medical Group's ROC % of 1.88% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROC % is 3.26. Town Health International Medical Group's value of 1.88% is 42.2% below 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 Healthcare Providers & Services company?
The median ROC % among Healthcare Providers & Services companies is 3.26, based on 676 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. Town Health International Medical Group's current ROC % of 1.88% is 42.2% below 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 Town Health International Medical Group and its competitors. For the Healthcare Providers & Services industry, the median ROC % is 3.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Town Health International Medical Group's current ROC % is 1.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Town Health International Medical Group stock overvalued right now?
Based on GuruFocus' analysis, Town Health International Medical Group (HKSE:03886) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$0.29, compared to a current price of HK$0.18 — trading 39.7% below its estimated fair value. The current ROC % is 1.88% and 42.2% below the Healthcare Providers & Services industry median of 3.26. Town Health International Medical Group's overall GF Score™ is 44/100 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 Town Health International Medical Group (HKSE:03886), the current ROC % is 1.88% 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 Town Health International Medical Group (HKSE:03886) Overvalued in 2026?
Based on GuruFocus' analysis, Town Health International Medical Group stock appears to be undervalued.
The current stock price of HK$0.18 is trading 39.7% below its estimated GF Value™ of HK$0.29.
GuruFocus considers Town Health International Medical Group to be Significantly Undervalued.
Key valuation signals for HKSE:03886:
ROC %: 1.88%
GF Value™: HK$0.29 vs. price of HK$0.18 (39.7% below fair value)
Industry Position: 42.2% below the Healthcare Providers & Services median
No single metric tells the full story. See the HKSE:03886 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Town Health International Medical Group Ltd is a Chinese healthcare services company. The company operates in the following business segments: Hong Kong medical services, which derives key revenue, provides medical and dental services in Hong Kong; Hong Kong managed medical network business manages healthcare networks and provision of third-party medical networks; Mainland hospital management and medical services, which provides medical and dental services in the PRC; and Others, provides miscellaneous healthcare-related services and leasing of properties. Its geographic segments are Hong Kong and other regions of PRC. It generates the majority of its revenue from Hong Kong.
44GF Score
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