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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 %. Earth-Panda Advanced Magnetic Material Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.64%.
Earth-Panda Advanced Magnetic Material Co (SHSE:688077) 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, Earth-Panda Advanced Magnetic Material Co's WACC % is 12.54%. Earth-Panda Advanced Magnetic Material Co's ROC % is 4.34% (calculated using TTM income statement data).
Earth-Panda Advanced Magnetic Material 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.
Earth-Panda Advanced Magnetic Material Co ROC % Related Terms
Earth-Panda Advanced Magnetic Material 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.
Earth-Panda Advanced Magnetic Material Co ROC % Chart
Earth-Panda Advanced Magnetic Material Co Annual Data
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.
Earth-Panda Advanced Magnetic Material Co (SHSE:688077) has a ROC % of 3.64% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Earth-Panda Advanced Magnetic Material Co and its competitors.
Is Earth-Panda Advanced Magnetic Material Co's ROC % too high?
Earth-Panda Advanced Magnetic Material Co's current ROC % is 3.64%. The Industrial Products industry median ROC % is 5.18. Earth-Panda Advanced Magnetic Material Co's value of 3.64% is 29.7% below this industry median. Overall, Earth-Panda Advanced Magnetic Material Co has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Earth-Panda Advanced Magnetic Material Co's ROC % compare to VRT and BE?
Earth-Panda Advanced Magnetic Material Co's ROC % of 3.64% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.18. Earth-Panda Advanced Magnetic Material Co's value of 3.64% is 29.7% 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 Industrial Products company?
The median ROC % among Industrial Products companies is 5.18, based on 3,031 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. Earth-Panda Advanced Magnetic Material Co's current ROC % of 3.64% is 29.7% 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 Earth-Panda Advanced Magnetic Material Co and its competitors. For the Industrial Products industry, the median ROC % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Earth-Panda Advanced Magnetic Material Co's current ROC % is 3.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Earth-Panda Advanced Magnetic Material Co stock overvalued right now?
Based on GuruFocus' analysis, Earth-Panda Advanced Magnetic Material Co (SHSE:688077) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥26.32, compared to a current price of ¥22.13 — trading 15.9% below its estimated fair value. The current ROC % is 3.64% and 29.7% below the Industrial Products industry median of 5.18. Earth-Panda Advanced Magnetic Material Co's overall GF Score™ is 73/100 with 9 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 Earth-Panda Advanced Magnetic Material Co (SHSE:688077), the current ROC % is 3.64% 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 Earth-Panda Advanced Magnetic Material Co (SHSE:688077) Overvalued in 2026?
Based on GuruFocus' analysis, Earth-Panda Advanced Magnetic Material Co stock appears to be undervalued.
The current stock price of ¥22.13 is trading 15.9% below its estimated GF Value™ of ¥26.32.
GuruFocus considers Earth-Panda Advanced Magnetic Material Co to be Modestly Undervalued.
Key valuation signals for SHSE:688077:
ROC %: 3.64%
GF Value™: ¥26.32 vs. price of ¥22.13 (15.9% below fair value)
Industry Position: 29.7% below the Industrial Products median
No single metric tells the full story. See the SHSE:688077 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Earth-Panda Advanced Magnetic Material Co Business Description
Earth-Panda Advanced Magnetic Material Co Ltd is engaged in production and sales of sintered NdFeB permanent magnet materials. Its products are sintered NdFeb magnet, bonded NdFeb magnet, rubber magnet, samarium cobalt magnet. Its products are used in various applications such as information, national defense, automobiles, wind power, various types of motors, instruments, medical equipments, magnetic machinery and various other fields.
73GF Score
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