ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Jiangsu Longda Superalloy Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.70%.
As of today (2026-06-29), Jiangsu Longda Superalloy Co's WACC % is 13.22%. Jiangsu Longda Superalloy Co's ROC % is 4.09% (calculated using TTM income statement data).
Jiangsu Longda Superalloy Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Jiangsu Longda Superalloy Co (SHSE:688231) 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, Jiangsu Longda Superalloy Co's WACC % is 13.22%. Jiangsu Longda Superalloy Co's ROC % is 4.09% (calculated using TTM income statement data).
Jiangsu Longda Superalloy 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.
Jiangsu Longda Superalloy Co ROC % Related Terms
Jiangsu Longda Superalloy 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.
Jiangsu Longda Superalloy Co (SHSE:688231) has a ROC % of 7.70% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Jiangsu Longda Superalloy Co and its competitors.
Is Jiangsu Longda Superalloy Co's ROC % too high?
Jiangsu Longda Superalloy Co's current ROC % is 7.70%. Overall, Jiangsu Longda Superalloy Co has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangsu Longda Superalloy Co's ROC % compare to competitors?
Jiangsu Longda Superalloy Co's ROC % of 7.70% can be compared against companies in the Metals & Mining industry. 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 Metals & Mining company?
A good ROC % depends on the Metals & Mining industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Jiangsu Longda Superalloy Co and its competitors. Jiangsu Longda Superalloy Co's current ROC % is 7.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangsu Longda Superalloy Co stock overvalued right now?
Based on GuruFocus' analysis, Jiangsu Longda Superalloy Co (SHSE:688231) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥21.98, compared to a current price of ¥34.08 — trading 55.1% above its estimated fair value. The current ROC % is 7.70%. Jiangsu Longda Superalloy Co's overall GF Score™ is 68/100 with 6 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 Jiangsu Longda Superalloy Co (SHSE:688231), the current ROC % is 7.70% 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 Jiangsu Longda Superalloy Co (SHSE:688231) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangsu Longda Superalloy Co stock appears to be overvalued.
The current stock price of ¥34.08 is trading 55.1% above its estimated GF Value™ of ¥21.98.
GuruFocus considers Jiangsu Longda Superalloy Co to be Significantly Overvalued.
Key valuation signals for SHSE:688231:
ROC %: 7.70%
GF Value™: ¥21.98 vs. price of ¥34.08 (55.1% above fair value)
No single metric tells the full story. See the SHSE:688231 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangsu Longda Superalloy Co Ltd engages in the research and development, production, and sales of alloy materials. Its high-temperature alloy segment includes casting and deformation alloys widely used in aerospace, energy, oil and gas, petrochemicals, shipbuilding, and automotive sectors. The company focuses on the "two-machine field," referring to aircraft engines and gas turbine equipment, serving both civil and military applications. It also offers alloy pipe products such as copper-nickel alloy tubes, high-speed rail ground wire alloy tubes, high-efficiency tubes, brass tubes, and copper tubes used in ships, power, rail transport, and petrochemical industries.
68GF Score
Get the complete analysis for SHSE:688231
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHSE:688231 has been successfully added to your 
