ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Ping An Insurance (Group) Co. of China's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 1.21%.
Ping An Insurance (Group) Co. of China (STU:PZX) 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, Ping An Insurance (Group) Co. of China's WACC % is 5.30%. Ping An Insurance (Group) Co. of China's ROC % is 1.38% (calculated using TTM income statement data).
Ping An Insurance (Group) Co. of China 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.
Ping An Insurance (Group) Co. of China ROC % Related Terms
Ping An Insurance (Group) Co. of China 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.
Ping An Insurance (Group) Co. of China ROC % Chart
Ping An Insurance (Group) Co. of China Annual Data
Note:
The EBIT 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.
Ping An Insurance (Group) Co. of China (STU:PZX) has a ROC % of 1.21% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Ping An Insurance (Group) Co. of China and its competitors.
Is Ping An Insurance (Group) Co. of China's ROC % too high?
Ping An Insurance (Group) Co. of China's current ROC % is 1.21%. The Insurance industry median ROC % is 3.37. Ping An Insurance (Group) Co. of China's value of 1.21% is 64% below this industry median. Overall, Ping An Insurance (Group) Co. of China has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ping An Insurance (Group) Co. of China's ROC % compare to AFL and MET?
Ping An Insurance (Group) Co. of China's ROC % of 1.21% can be compared against companies in the Insurance industry. The industry median ROC % is 3.37. Ping An Insurance (Group) Co. of China's value of 1.21% is 64% 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 Insurance company?
The median ROC % among Insurance companies is 3.37, based on 370 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. Ping An Insurance (Group) Co. of China's current ROC % of 1.21% is 64% 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 Ping An Insurance (Group) Co. of China and its competitors. For the Insurance industry, the median ROC % is 3.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ping An Insurance (Group) Co. of China's current ROC % is 1.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ping An Insurance (Group) Co. of China stock overvalued right now?
Based on GuruFocus' analysis, Ping An Insurance (Group) Co. of China (STU:PZX) is currently considered Fairly Valued. The stock's GF Value™ is €5.62, compared to a current price of €5.95 — trading 5.9% above its estimated fair value. The current ROC % is 1.21% and 64% below the Insurance industry median of 3.37. Ping An Insurance (Group) Co. of China's overall GF Score™ is 61/100 with 3 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 Ping An Insurance (Group) Co. of China (STU:PZX), the current ROC % is 1.21% 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 Ping An Insurance (Group) Co. of China (STU:PZX) Overvalued in 2026?
Based on GuruFocus' analysis, Ping An Insurance (Group) Co. of China stock appears to be overvalued.
The current stock price of €5.95 is trading 5.9% above its estimated GF Value™ of €5.62.
GuruFocus considers Ping An Insurance (Group) Co. of China to be Fairly Valued.
Key valuation signals for STU:PZX:
ROC %: 1.21%
GF Value™: €5.62 vs. price of €5.95 (5.9% above fair value)
No single metric tells the full story. See the STU:PZX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ping An Insurance (Group) Co. of China Business Description
Ping An Insurance was founded in 1988 and headquartered in Shenzhen. As an integrated financial service provider, the company offers healthcare services and integrated financial products. Ping An is China's second-largest life and P&C insurer. The company strives for an integrated financial services platform comprising life insurance, P&C insurance, banking, and other financial services. These business segments contributed 66%, 10%, 28%, and 1% of the company's pretax profits, respectively, in 2025.
61GF Score
Get the complete analysis for STU:PZX
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
STU:PZX has been successfully added to your 
