ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Chongqing Water Group Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.42%.
As of today (2026-06-29), Chongqing Water Group Co's WACC % is 3.71%. Chongqing Water Group Co's ROC % is 2.78% (calculated using TTM income statement data).
Chongqing Water Group Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Chongqing Water Group Co (SHSE:601158) 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, Chongqing Water Group Co's WACC % is 3.71%. Chongqing Water Group Co's ROC % is 2.78% (calculated using TTM income statement data).
Chongqing Water Group Co 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.
* 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.
Chongqing Water Group Co (SHSE:601158) has a ROC % of 3.42% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Chongqing Water Group Co and its competitors.
Is Chongqing Water Group Co's ROC % too high?
Chongqing Water Group Co's current ROC % is 3.42%. The Utilities - Regulated industry median ROC % is 4.18. Chongqing Water Group Co's value of 3.42% is 18.2% below this industry median. Overall, Chongqing Water Group Co has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chongqing Water Group Co's ROC % compare to AWK and WTRG?
Chongqing Water Group Co's ROC % of 3.42% can be compared against companies in the Utilities - Regulated industry. The industry median ROC % is 4.18. Chongqing Water Group Co's value of 3.42% is 18.2% 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 an Utilities - Regulated company?
The median ROC % among Utilities - Regulated companies is 4.18, based on 503 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. Chongqing Water Group Co's current ROC % of 3.42% is 18.2% 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 Chongqing Water Group Co and its competitors. For the Utilities - Regulated industry, the median ROC % is 4.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chongqing Water Group Co's current ROC % is 3.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chongqing Water Group Co stock overvalued right now?
Based on GuruFocus' analysis, Chongqing Water Group Co (SHSE:601158) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥4.64, compared to a current price of ¥3.88 — trading 16.4% below its estimated fair value. The current ROC % is 3.42% and 18.2% below the Utilities - Regulated industry median of 4.18. Chongqing Water Group Co's overall GF Score™ is 65/100 with 10 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 Chongqing Water Group Co (SHSE:601158), the current ROC % is 3.42% 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 Chongqing Water Group Co (SHSE:601158) Overvalued in 2026?
Based on GuruFocus' analysis, Chongqing Water Group Co stock appears to be undervalued.
The current stock price of ¥3.88 is trading 16.4% below its estimated GF Value™ of ¥4.64.
GuruFocus considers Chongqing Water Group Co to be Modestly Undervalued.
Key valuation signals for SHSE:601158:
ROC %: 3.42%
GF Value™: ¥4.64 vs. price of ¥3.88 (16.4% below fair value)
Industry Position: 18.2% below the Utilities - Regulated median
No single metric tells the full story. See the SHSE:601158 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chongqing Water Group Co Ltd engages in water supply, sewage treatment, engineering construction, and other businesses in China. The company also constructs, operates, and maintains drainage facilities; and collects, treats, and discharges domestic sewage, industrial and commercial sewage, rainwater, and other sewage from the urban sewage pipe network, as well as treats sewage in rivers.
65GF Score
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