Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. NBTM New Materials Group Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 13.35%.
As of today (2026-07-21), NBTM New Materials Group Co's WACC % is 10.74%. NBTM New Materials Group Co's ROC % is 13.67% (calculated using TTM income statement data).
NBTM New Materials Group 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.
NBTM New Materials Group Co (SHSE:600114) 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, NBTM New Materials Group Co's WACC % is 10.74%. NBTM New Materials Group Co's ROC % is 13.67% (calculated using TTM income statement data).
NBTM New Materials Group 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.
NBTM New Materials Group Co (SHSE:600114) has a ROC % of 13.35% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on NBTM New Materials Group Co and its competitors.
Is NBTM New Materials Group Co's ROC % too high?
NBTM New Materials Group Co's current ROC % is 13.35%. The Vehicles & Parts industry median ROC % is 5.09. NBTM New Materials Group Co's value of 13.35% is 162.3% above this industry median. Overall, NBTM New Materials Group Co has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NBTM New Materials Group Co's ROC % compare to ORLY and AZO?
NBTM New Materials Group Co's ROC % of 13.35% can be compared against companies in the Vehicles & Parts industry. The industry median ROC % is 5.09. NBTM New Materials Group Co's value of 13.35% is 162.3% 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 Vehicles & Parts company?
The median ROC % among Vehicles & Parts companies is 5.09, based on 1,311 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. NBTM New Materials Group Co's current ROC % of 13.35% is 162.3% 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 NBTM New Materials Group Co and its competitors. For the Vehicles & Parts industry, the median ROC % is 5.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NBTM New Materials Group Co's current ROC % is 13.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NBTM New Materials Group Co stock overvalued right now?
Based on GuruFocus' analysis, NBTM New Materials Group Co (SHSE:600114) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥23.44, compared to a current price of ¥27.13 — trading 15.7% above its estimated fair value. The current ROC % is 13.35% and 162.3% above the Vehicles & Parts industry median of 5.09. NBTM New Materials Group Co's overall GF Score™ is 89/100 with 1 warning sign 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 NBTM New Materials Group Co (SHSE:600114), the current ROC % is 13.35% 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 NBTM New Materials Group Co (SHSE:600114) Overvalued in 2026?
Based on GuruFocus' analysis, NBTM New Materials Group Co stock appears to be overvalued.
The current stock price of ¥27.13 is trading 15.7% above its estimated GF Value™ of ¥23.44.
GuruFocus considers NBTM New Materials Group Co to be Modestly Overvalued.
Key valuation signals for SHSE:600114:
ROC %: 13.35%
GF Value™: ¥23.44 vs. price of ¥27.13 (15.7% above fair value)
Industry Position: 162.3% above the Vehicles & Parts median
No single metric tells the full story. See the SHSE:600114 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NBTM New Materials Group Co Ltd is engaged in producing and selling powder metal structural parts and magnetic materials components in China. It provides car parts, such as car engine, auto transmission, auto chassis, and other products; new energy parts; air condition compressor and refrigerator compressor parts for home appliances; and motorcycle engines, clutches, driven gears, and other components.
89GF Score
Get the complete analysis for SHSE:600114
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:600114 has been successfully added to your 
