ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Hefei Changqing Machinery Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.91%.
As of today (2026-07-03), Hefei Changqing Machinery Co's WACC % is 6.28%. Hefei Changqing Machinery Co's ROC % is 1.59% (calculated using TTM income statement data).
Hefei Changqing Machinery Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Hefei Changqing Machinery Co (SHSE:603768) 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, Hefei Changqing Machinery Co's WACC % is 6.28%. Hefei Changqing Machinery Co's ROC % is 1.59% (calculated using TTM income statement data).
Hefei Changqing Machinery 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.
Hefei Changqing Machinery Co ROC % Related Terms
Hefei Changqing Machinery Co ROC % Historical Data
* 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.
Hefei Changqing Machinery Co (SHSE:603768) has a ROC % of 3.91% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Hefei Changqing Machinery Co and its competitors.
Is Hefei Changqing Machinery Co's ROC % too high?
Hefei Changqing Machinery Co's current ROC % is 3.91%. The Vehicles & Parts industry median ROC % is 5.07. Hefei Changqing Machinery Co's value of 3.91% is 22.9% below this industry median. Overall, Hefei Changqing Machinery Co has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hefei Changqing Machinery Co's ROC % compare to ORLY and AZO?
Hefei Changqing Machinery Co's ROC % of 3.91% can be compared against companies in the Vehicles & Parts industry. The industry median ROC % is 5.07. Hefei Changqing Machinery Co's value of 3.91% is 22.9% 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 Vehicles & Parts company?
The median ROC % among Vehicles & Parts companies is 5.07, based on 1,314 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. Hefei Changqing Machinery Co's current ROC % of 3.91% is 22.9% 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 Hefei Changqing Machinery Co and its competitors. For the Vehicles & Parts industry, the median ROC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hefei Changqing Machinery Co's current ROC % is 3.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hefei Changqing Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Hefei Changqing Machinery Co (SHSE:603768) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥12.43, compared to a current price of ¥10.02 — trading 19.4% below its estimated fair value. The current ROC % is 3.91% and 22.9% below the Vehicles & Parts industry median of 5.07. Hefei Changqing Machinery Co's overall GF Score™ is 66/100 with 11 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 Hefei Changqing Machinery Co (SHSE:603768), the current ROC % is 3.91% 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 Hefei Changqing Machinery Co (SHSE:603768) Overvalued in 2026?
Based on GuruFocus' analysis, Hefei Changqing Machinery Co stock appears to be undervalued.
The current stock price of ¥10.02 is trading 19.4% below its estimated GF Value™ of ¥12.43.
GuruFocus considers Hefei Changqing Machinery Co to be Modestly Undervalued.
Key valuation signals for SHSE:603768:
ROC %: 3.91%
GF Value™: ¥12.43 vs. price of ¥10.02 (19.4% below fair value)
Industry Position: 22.9% below the Vehicles & Parts median
No single metric tells the full story. See the SHSE:603768 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hefei Changqing Machinery Co Ltd is a China based company primarily engaged in the manufacturing of automotive parts. The company researches, develops, and produces automotive stamping, mold fixture products, and welding parts. It offers products for passenger cars, VIP cars, commercial vehicles, electrophoresis, and other series. The product portfolio of the company comprises chassis frame, air reservoir, silencer, forklift roof, stringer, and other related accessories.
66GF 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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