ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Silvery Dragon Group Co Tianjin's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.79%.
As of today (2026-07-07), Silvery Dragon Group Co Tianjin's WACC % is 9.33%. Silvery Dragon Group Co Tianjin's ROC % is 13.00% (calculated using TTM income statement data).
Silvery Dragon Group Co Tianjin 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.
Silvery Dragon Group Co Tianjin (SHSE:603969) 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, Silvery Dragon Group Co Tianjin's WACC % is 9.33%. Silvery Dragon Group Co Tianjin's ROC % is 13.00% (calculated using TTM income statement data).
Silvery Dragon Group Co Tianjin 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.
Silvery Dragon Group Co Tianjin ROC % Related Terms
Silvery Dragon Group Co Tianjin 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.
Silvery Dragon Group Co Tianjin (SHSE:603969) has a ROC % of 8.79% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Silvery Dragon Group Co Tianjin and its competitors.
Is Silvery Dragon Group Co Tianjin's ROC % too high?
Silvery Dragon Group Co Tianjin's current ROC % is 8.79%. The Steel industry median ROC % is 2.55. Silvery Dragon Group Co Tianjin's value of 8.79% is 244.7% above this industry median. Overall, Silvery Dragon Group Co Tianjin has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Silvery Dragon Group Co Tianjin's ROC % compare to NUE and STLD?
Silvery Dragon Group Co Tianjin's ROC % of 8.79% can be compared against companies in the Steel industry. The industry median ROC % is 2.55. Silvery Dragon Group Co Tianjin's value of 8.79% is 244.7% 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 Steel company?
The median ROC % among Steel companies is 2.55, based on 620 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. Silvery Dragon Group Co Tianjin's current ROC % of 8.79% is 244.7% 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 Silvery Dragon Group Co Tianjin and its competitors. For the Steel industry, the median ROC % is 2.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Silvery Dragon Group Co Tianjin's current ROC % is 8.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Silvery Dragon Group Co Tianjin stock overvalued right now?
Based on GuruFocus' analysis, Silvery Dragon Group Co Tianjin (SHSE:603969) is currently considered Fairly Valued. The stock's GF Value™ is ¥7.47, compared to a current price of ¥7.81 — trading 4.6% above its estimated fair value. The current ROC % is 8.79% and 244.7% above the Steel industry median of 2.55. Silvery Dragon Group Co Tianjin's overall GF Score™ is 86/100 with 2 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 Silvery Dragon Group Co Tianjin (SHSE:603969), the current ROC % is 8.79% 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 Silvery Dragon Group Co Tianjin (SHSE:603969) Overvalued in 2026?
Based on GuruFocus' analysis, Silvery Dragon Group Co Tianjin stock appears to be overvalued.
The current stock price of ¥7.81 is trading 4.6% above its estimated GF Value™ of ¥7.47.
GuruFocus considers Silvery Dragon Group Co Tianjin to be Fairly Valued.
Key valuation signals for SHSE:603969:
ROC %: 8.79%
GF Value™: ¥7.47 vs. price of ¥7.81 (4.6% above fair value)
No single metric tells the full story. See the SHSE:603969 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Silvery Dragon Group Co Tianjin Business Description
Silvery Dragon Group Co Ltd Tianjin is engaged in the research, development, production, and sale of steel for prestressed concrete. Its licensed business activities include the production of steel bar products for construction, the undertaking of construction projects and the design of construction projects.
86GF Score
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