ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. China Energy Engineering's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 4.58%.
As of today (2026-07-04), China Energy Engineering's WACC % is 3.15%. China Energy Engineering's ROC % is 1.56% (calculated using TTM income statement data).
China Energy Engineering earns returns that do not match up to its cost of capital. It will destroy value as it grows.
China Energy Engineering (SHSE:601868) 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, China Energy Engineering's WACC % is 3.15%. China Energy Engineering's ROC % is 1.56% (calculated using TTM income statement data).
China Energy Engineering 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 (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.
China Energy Engineering (SHSE:601868) has a ROC % of 4.58% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on China Energy Engineering and its competitors.
Is China Energy Engineering's ROC % too high?
China Energy Engineering's current ROC % is 4.58%. The Construction industry median ROC % is 4.64. China Energy Engineering's value of 4.58% is 1.2% below this industry median. Overall, China Energy Engineering has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Energy Engineering's ROC % compare to PWR and FIX?
China Energy Engineering's ROC % of 4.58% can be compared against companies in the Construction industry. The industry median ROC % is 4.64. China Energy Engineering's value of 4.58% is 1.2% 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 a Construction company?
The median ROC % among Construction companies is 4.64, based on 1,750 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. China Energy Engineering's current ROC % of 4.58% is 1.2% 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 China Energy Engineering and its competitors. For the Construction industry, the median ROC % is 4.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Energy Engineering's current ROC % is 4.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Energy Engineering stock overvalued right now?
Based on GuruFocus' analysis, China Energy Engineering (SHSE:601868) is currently considered Fairly Valued. The stock's GF Value™ is ¥2.75, compared to a current price of ¥2.66 — trading 3.3% below its estimated fair value. The current ROC % is 4.58% and 1.2% below the Construction industry median of 4.64. China Energy Engineering's overall GF Score™ is 67/100 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 China Energy Engineering (SHSE:601868), the current ROC % is 4.58% 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 China Energy Engineering (SHSE:601868) Overvalued in 2026?
Based on GuruFocus' analysis, China Energy Engineering stock appears to be undervalued.
The current stock price of ¥2.66 is trading 3.3% below its estimated GF Value™ of ¥2.75.
GuruFocus considers China Energy Engineering to be Fairly Valued.
Key valuation signals for SHSE:601868:
ROC %: 4.58%
GF Value™: ¥2.75 vs. price of ¥2.66 (3.3% below fair value)
Industry Position: 1.2% below the Construction median
No single metric tells the full story. See the SHSE:601868 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Energy Engineering Corporation Ltd focused on two core main businesses of energy power and water conservancy, coordinately expanded nine related diversified businesses of green transportation, green buildings and municipal administration, digital infrastructure (artificial intelligence), new materials, civil explosives, ecological and environmental protection, highend equipment, urban development and operation (real estate), and industrial finance, comprehensively constructed a new coordinated development layout of 2+9 businesses, formed five business sectors of survey, design and consulting services, construction and contracting, industrial manufacturing, investment and operation, and others, and has the integrated service capabilities covering the whole industry chain.
67GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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