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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 %. Shantui Construction Machinery Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 27.89%.
As of today (2026-08-29), Shantui Construction Machinery Co's WACC % is 8.88%. Shantui Construction Machinery Co's ROC % is 26.36% (calculated using TTM income statement data).
Shantui Construction Machinery Co 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.
Shantui Construction Machinery Co (SZSE:000680) 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, Shantui Construction Machinery Co's WACC % is 8.88%. Shantui Construction Machinery Co's ROC % is 26.36% (calculated using TTM income statement data).
Shantui Construction Machinery Co 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.
Shantui Construction Machinery Co ROC % Related Terms
Shantui Construction Machinery 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 (Jun. 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.
Shantui Construction Machinery Co (SZSE:000680) has a ROC % of 27.89% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Shantui Construction Machinery Co and its competitors.
Is Shantui Construction Machinery Co's ROC % too high?
Shantui Construction Machinery Co's current ROC % is 27.89%. The Farm & Heavy Construction Machinery industry median ROC % is 5.59. Shantui Construction Machinery Co's value of 27.89% is 398.9% above this industry median. Overall, Shantui Construction Machinery Co has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shantui Construction Machinery Co's ROC % compare to CAT and DE?
Shantui Construction Machinery Co's ROC % of 27.89% can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median ROC % is 5.59. Shantui Construction Machinery Co's value of 27.89% is 398.9% 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 Farm & Heavy Construction Machinery company?
The median ROC % among Farm & Heavy Construction Machinery companies is 5.59, based on 205 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. Shantui Construction Machinery Co's current ROC % of 27.89% is 398.9% 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 Shantui Construction Machinery Co and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROC % is 5.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shantui Construction Machinery Co's current ROC % is 27.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shantui Construction Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Shantui Construction Machinery Co (SZSE:000680) is currently considered Fairly Valued. The stock's GF Value™ is ¥11.11, compared to a current price of ¥10.38 — trading 6.6% below its estimated fair value. The current ROC % is 27.89% and 398.9% above the Farm & Heavy Construction Machinery industry median of 5.59. Shantui Construction Machinery Co's overall GF Score™ is 87/100 with 4 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 Shantui Construction Machinery Co (SZSE:000680), the current ROC % is 27.89% as of Jun. 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 Shantui Construction Machinery Co (SZSE:000680) Overvalued in 2026?
Based on GuruFocus' analysis, Shantui Construction Machinery Co stock appears to be undervalued.
The current stock price of ¥10.38 is trading 6.6% below its estimated GF Value™ of ¥11.11.
GuruFocus considers Shantui Construction Machinery Co to be Fairly Valued.
Key valuation signals for SZSE:000680:
ROC %: 27.89%
GF Value™: ¥11.11 vs. price of ¥10.38 (6.6% below fair value)
Industry Position: 398.9% above the Farm & Heavy Construction Machinery median
No single metric tells the full story. See the SZSE:000680 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shantui Construction Machinery Co Ltd is a China-based company specializing in the research and development, manufacture and sale of construction machinery products and related spare parts. Its product portfolio covers earthmoving machinery, pavement and compaction machinery, concrete machinery, excavators, loaders and other host products. The company has formed industrial bases such as bulldozers, road machinery, loaders, concrete machinery and construction machinery parts.
87GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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