ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sichuan Expressway Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.76%.
As of today (2026-06-26), Sichuan Expressway Co's WACC % is 3.01%. Sichuan Expressway Co's ROC % is 3.27% (calculated using TTM income statement data).
Sichuan Expressway 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.
Sichuan Expressway Co (OTCPK:SEXHF) 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, Sichuan Expressway Co's WACC % is 3.01%. Sichuan Expressway Co's ROC % is 3.27% (calculated using TTM income statement data).
Sichuan Expressway 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.
* 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.
Sichuan Expressway Co (SEXHF) has a ROC % of 3.76% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sichuan Expressway Co and its competitors.
Is Sichuan Expressway Co's ROC % too high?
Sichuan Expressway Co's current ROC % is 3.76%. The Construction industry median ROC % is 4.65. Sichuan Expressway Co's value of 3.76% is 19.1% below this industry median. Overall, Sichuan Expressway Co has a GF Score™ of 51/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sichuan Expressway Co's ROC % compare to competitors?
Sichuan Expressway Co's ROC % of 3.76% can be compared against companies in the Construction industry. The industry median ROC % is 4.65. Sichuan Expressway Co's value of 3.76% is 19.1% 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 Construction company?
The median ROC % among Construction companies is 4.65, based on 1,755 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. Sichuan Expressway Co's current ROC % of 3.76% is 19.1% 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 Sichuan Expressway Co and its competitors. For the Construction industry, the median ROC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sichuan Expressway Co's current ROC % is 3.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sichuan Expressway Co stock overvalued right now?
Based on GuruFocus' analysis, Sichuan Expressway Co (SEXHF) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.49, compared to a current price of $0.58 — trading 17.7% above its estimated fair value. The current ROC % is 3.76% and 19.1% below the Construction industry median of 4.65. Sichuan Expressway Co's overall GF Score™ is 51/100 with 7 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 Sichuan Expressway Co (SEXHF), the current ROC % is 3.76% 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 Sichuan Expressway Co (SEXHF) Overvalued in 2026?
Based on GuruFocus' analysis, Sichuan Expressway Co stock appears to be overvalued.
The current stock price of $0.58 is trading 17.7% above its estimated GF Value™ of $0.49.
GuruFocus considers Sichuan Expressway Co to be Modestly Overvalued.
Key valuation signals for SEXHF:
ROC %: 3.76%
GF Value™: $0.49 vs. price of $0.58 (17.7% above fair value)
Industry Position: 19.1% below the Construction median
No single metric tells the full story. See the SEXHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sichuan Expressway Co Ltd is engaged in the investment, construction, operation, and management of certain expressway projects, green energy investment business, and integrated development of resources along the routes. The group is organised into business units based on their services and products, and has six reportable operating segments, which include Expressways, Construction Services, Transportation Services, Transportation Logistics, New Energy Technologies, and Others. A majority of its revenue is generated from the Expressways segment, which comprises the operation of expressways and a high-grade toll bridge in Mainland China. Geographically, the group derives all of its revenue from Mainland China.
51GF Score
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