ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Yutong Bus Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 17.43%.
As of today (2026-06-27), Yutong Bus Co's WACC % is 8.42%. Yutong Bus Co's ROC % is 37.42% (calculated using TTM income statement data).
Yutong Bus 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.
Yutong Bus Co (SHSE:600066) 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, Yutong Bus Co's WACC % is 8.42%. Yutong Bus Co's ROC % is 37.42% (calculated using TTM income statement data).
Yutong Bus 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.
Yutong Bus Co ROC % Related Terms
Yutong Bus Co ROC % Historical Data
* Premium members only.
The historical data trend for Yutong Bus Co'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 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.
Yutong Bus Co (SHSE:600066) has a ROC % of 17.43% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Yutong Bus Co and its competitors.
Is Yutong Bus Co's ROC % too high?
Yutong Bus Co's current ROC % is 17.43%. The Farm & Heavy Construction Machinery industry median ROC % is 5.47. Yutong Bus Co's value of 17.43% is 218.6% above this industry median. Overall, Yutong Bus Co has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Yutong Bus Co's ROC % compare to CAT and DE?
Yutong Bus Co's ROC % of 17.43% can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median ROC % is 5.47. Yutong Bus Co's value of 17.43% is 218.6% 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 Farm & Heavy Construction Machinery company?
The median ROC % among Farm & Heavy Construction Machinery companies is 5.47, based on 207 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. Yutong Bus Co's current ROC % of 17.43% is 218.6% 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 Yutong Bus Co and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROC % is 5.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yutong Bus Co's current ROC % is 17.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yutong Bus Co stock overvalued right now?
Based on GuruFocus' analysis, Yutong Bus Co (SHSE:600066) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥30.65, compared to a current price of ¥26.80 — trading 12.6% below its estimated fair value. The current ROC % is 17.43% and 218.6% above the Farm & Heavy Construction Machinery industry median of 5.47. Yutong Bus Co's overall GF Score™ is 95/100. 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 Yutong Bus Co (SHSE:600066), the current ROC % is 17.43% 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 Yutong Bus Co (SHSE:600066) Overvalued in 2026?
Based on GuruFocus' analysis, Yutong Bus Co stock appears to be undervalued.
The current stock price of ¥26.80 is trading 12.6% below its estimated GF Value™ of ¥30.65.
GuruFocus considers Yutong Bus Co to be Modestly Undervalued.
Key valuation signals for SHSE:600066:
ROC %: 17.43%
GF Value™: ¥30.65 vs. price of ¥26.80 (12.6% below fair value)
Industry Position: 218.6% above the Farm & Heavy Construction Machinery median
No single metric tells the full story. See the SHSE:600066 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yutong Bus Co Ltd engages in the manufacture and sale of buses and related products. The company operates its business through four main segments. The Bus Manufacturing segment focuses on producing and selling large, medium, and light buses, which include passenger buses, city buses, school buses, and various types of new energy vehicles such as pure electric, plug-in hybrid, and fuel cell models. The Foreign Trade segment handles both domestic and international sales and distribution of buses and new energy vehicles. The Passenger Transportation segment covers services such as group rentals, short-distance and highway travel, tourism transport, bus operations, employee commuting, and school transportation. The Other segment is responsible for providing after-sales support and services.
95GF Score
Get the complete analysis for SHSE:600066
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHSE:600066 has been successfully added to your 
