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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 %. ClouDr Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 25.71%.
As of today (2026-08-27), ClouDr Group's WACC % is 6.65%. ClouDr Group's ROC % is -19.74% (calculated using TTM income statement data).
ClouDr Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, ClouDr Group's WACC % is 6.65%. ClouDr Group's ROC % is -19.74% (calculated using TTM income statement data).
ClouDr 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.
ClouDr Group ROC % Related Terms
ClouDr Group ROC % Historical Data
* Premium members only.
The historical data trend for ClouDr Group'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 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.
ClouDr Group (HKSE:09955) has a ROC % of 25.71% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on ClouDr Group and its competitors.
Is ClouDr Group's ROC % too high?
ClouDr Group's current ROC % is 25.71%. The Medical Distribution industry median ROC % is 5.07. ClouDr Group's value of 25.71% is 407.1% above this industry median. Overall, ClouDr Group has a GF Score™ of 48/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ClouDr Group's ROC % compare to MCK and COR?
ClouDr Group's ROC % of 25.71% can be compared against companies in the Medical Distribution industry. The industry median ROC % is 5.07. ClouDr Group's value of 25.71% is 407.1% 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 Medical Distribution company?
The median ROC % among Medical Distribution companies is 5.07, based on 119 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. ClouDr Group's current ROC % of 25.71% is 407.1% 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 ClouDr Group and its competitors. For the Medical Distribution industry, the median ROC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ClouDr Group's current ROC % is 25.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ClouDr Group stock overvalued right now?
Based on GuruFocus' analysis, ClouDr Group (HKSE:09955) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.81, compared to a current price of HK$0.51 — trading 37% below its estimated fair value. The current ROC % is 25.71% and 407.1% above the Medical Distribution industry median of 5.07. ClouDr Group's overall GF Score™ is 48/100 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 ClouDr Group (HKSE:09955), the current ROC % is 25.71% 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 ClouDr Group (HKSE:09955) Overvalued in 2026?
Based on GuruFocus' analysis, ClouDr Group stock appears to be undervalued.
The current stock price of HK$0.51 is trading 37% below its estimated GF Value™ of HK$0.81.
GuruFocus considers ClouDr Group to be Possible Value Trap.
Key valuation signals for HKSE:09955:
ROC %: 25.71%
GF Value™: HK$0.81 vs. price of HK$0.51 (37% below fair value)
Industry Position: 407.1% above the Medical Distribution median
No single metric tells the full story. See the HKSE:09955 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ClouDr Group Ltd provides supplies and SaaS to hospitals and pharmacies, digital marketing services to pharmaceutical companies, and online consultation and prescriptions to patients, all centered around chronic condition management. The company's in-hospital solution consists of sales of medical devices, consumables, and pharmaceuticals, hospital SaaS, and digital marketing services to pharmaceutical companies, and the out-of-hospital solution connects doctors and patients, and provides high-quality and trustworthy medical services through the AI vertical model ClouD GPT. The company generates revenues from sales of hospital and pharmacy supplies and individual chronic condition management products.
48GF Score
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