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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Zhende Medical Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 6.78%.
As of today (2026-09-11), Zhende Medical Co's WACC % is 9.99%. Zhende Medical Co's ROC % is 5.37% (calculated using TTM income statement data).
Zhende Medical Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Zhende Medical Co's WACC % is 9.99%. Zhende Medical Co's ROC % is 5.37% (calculated using TTM income statement data).
Zhende Medical 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.
Zhende Medical Co ROC % Related Terms
Zhende Medical Co ROC % Historical Data
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The historical data trend for Zhende Medical 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 (Jun. 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.
Zhende Medical Co (SHSE:603301) has a ROC % of 6.78% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Zhende Medical Co and its competitors.
Is Zhende Medical Co's ROC % too high?
Zhende Medical Co's current ROC % is 6.78%. The Medical Devices & Instruments industry median ROC % is 1.65. Zhende Medical Co's value of 6.78% is 310.9% above this industry median. Overall, Zhende Medical Co has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhende Medical Co's ROC % compare to ISRG and BDX?
Zhende Medical Co's ROC % of 6.78% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROC % is 1.65. Zhende Medical Co's value of 6.78% is 310.9% 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 Medical Devices & Instruments company?
The median ROC % among Medical Devices & Instruments companies is 1.65, based on 837 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. Zhende Medical Co's current ROC % of 6.78% is 310.9% 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 Zhende Medical Co and its competitors. For the Medical Devices & Instruments industry, the median ROC % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhende Medical Co's current ROC % is 6.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhende Medical Co stock overvalued right now?
Based on GuruFocus' analysis, Zhende Medical Co (SHSE:603301) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥26.63, compared to a current price of ¥81.24 — trading 205.1% above its estimated fair value. The current ROC % is 6.78% and 310.9% above the Medical Devices & Instruments industry median of 1.65. Zhende Medical Co's overall GF Score™ is 53/100 with 4 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 Zhende Medical Co (SHSE:603301), the current ROC % is 6.78% as of Jun. 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 Zhende Medical Co (SHSE:603301) Overvalued in 2026?
Based on GuruFocus' analysis, Zhende Medical Co stock appears to be overvalued.
The current stock price of ¥81.24 is trading 205.1% above its estimated GF Value™ of ¥26.63.
GuruFocus considers Zhende Medical Co to be Significantly Overvalued.
Key valuation signals for SHSE:603301:
ROC %: 6.78%
GF Value™: ¥26.63 vs. price of ¥81.24 (205.1% above fair value)
Industry Position: 310.9% above the Medical Devices & Instruments median
No single metric tells the full story. See the SHSE:603301 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhende Medical Co Ltd operates as a supplier of medical care and protection in China. The company is engaged in the production and sales of medical dressings. Its product categories are basic medical dressings, operating room sensory control, pressure therapy and fixation, stoma and chronic wounds, Isolation protection, and personal protection.
53GF Score
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