ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. China Oriental Group Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 0.80%.
As of today (2026-06-25), China Oriental Group Co's WACC % is 2.48%. China Oriental Group Co's ROC % is 1.35% (calculated using TTM income statement data).
China Oriental Group Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
China Oriental Group Co (STU:ORG) 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, China Oriental Group Co's WACC % is 2.48%. China Oriental Group Co's ROC % is 1.35% (calculated using TTM income statement data).
China Oriental Group 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.
* 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 two times the semi-annual (Dec. 2025) 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.
China Oriental Group Co (STU:ORG) has a ROC % of 0.80% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on China Oriental Group Co and its competitors.
Is China Oriental Group Co's ROC % too high?
China Oriental Group Co's current ROC % is 0.80%. The Steel industry median ROC % is 2.61. China Oriental Group Co's value of 0.80% is 69.3% below this industry median. Overall, China Oriental Group Co has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Oriental Group Co's ROC % compare to NUE and STLD?
China Oriental Group Co's ROC % of 0.80% can be compared against companies in the Steel industry. The industry median ROC % is 2.61. China Oriental Group Co's value of 0.80% is 69.3% 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 Steel company?
The median ROC % among Steel companies is 2.61, based on 625 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. China Oriental Group Co's current ROC % of 0.80% is 69.3% 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 China Oriental Group Co and its competitors. For the Steel industry, the median ROC % is 2.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Oriental Group Co's current ROC % is 0.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Oriental Group Co stock overvalued right now?
Based on GuruFocus' analysis, China Oriental Group Co (STU:ORG) is currently considered Fairly Valued. The stock's GF Value™ is €0.11, compared to a current price of €0.11 — trading 0.9% above its estimated fair value. The current ROC % is 0.80% and 69.3% below the Steel industry median of 2.61. China Oriental Group Co's overall GF Score™ is 66/100 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 China Oriental Group Co (STU:ORG), the current ROC % is 0.80% as of Dec. 2025. 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 China Oriental Group Co (STU:ORG) Overvalued in 2026?
Based on GuruFocus' analysis, China Oriental Group Co stock appears to be overvalued.
The current stock price of €0.11 is trading 0.9% above its estimated GF Value™ of €0.11.
GuruFocus considers China Oriental Group Co to be Fairly Valued.
Key valuation signals for STU:ORG:
ROC %: 0.80%
GF Value™: €0.11 vs. price of €0.11 (0.9% above fair value)
No single metric tells the full story. See the STU:ORG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Oriental Group Co Ltd is involved in investment holding and trading of steel products and iron ore. The company, along with its subsidiaries, is engaged in the manufacturing and sale of iron and steel products, the trading of steel products, iron ore, and related raw materials, the sale of power equipment, and the real estate business. The Group's product offerings mainly include rebars, billets, cold-rolled sheets and galvanized sheets, steel strips and strip products, and H-section steel products, among others. Its operating segments are: Iron and steel, which generates the maximum revenue, and Real estate. Geographically, the Group generates the majority of its revenue from the People's Republic of China (PRC).
66GF Score
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