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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 %. China National Accord Medicines's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 6.13%.
As of today (2026-09-14), China National Accord Medicines's WACC % is 7.97%. China National Accord Medicines's ROC % is 6.24% (calculated using TTM income statement data).
China National Accord Medicines earns returns that do not match up to its cost of capital. It will destroy value as it grows.
China National Accord Medicines (SZSE:200028) 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 National Accord Medicines's WACC % is 7.97%. China National Accord Medicines's ROC % is 6.24% (calculated using TTM income statement data).
China National Accord Medicines 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.
China National Accord Medicines ROC % Related Terms
China National Accord Medicines 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.
China National Accord Medicines (SZSE:200028) has a ROC % of 6.13% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on China National Accord Medicines and its competitors.
Is China National Accord Medicines' ROC % too high?
China National Accord Medicines' current ROC % is 6.13%. The Medical Distribution industry median ROC % is 5.29. China National Accord Medicines' value of 6.13% is 15.9% above this industry median. Overall, China National Accord Medicines has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China National Accord Medicines' ROC % compare to MCK and COR?
China National Accord Medicines' ROC % of 6.13% can be compared against companies in the Medical Distribution industry. The industry median ROC % is 5.29. China National Accord Medicines' value of 6.13% is 15.9% 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 Medical Distribution company?
The median ROC % among Medical Distribution companies is 5.29, based on 123 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 National Accord Medicines's current ROC % of 6.13% is 15.9% 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 China National Accord Medicines and its competitors. For the Medical Distribution industry, the median ROC % is 5.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China National Accord Medicines's current ROC % is 6.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China National Accord Medicines stock overvalued right now?
Based on GuruFocus' analysis, China National Accord Medicines (SZSE:200028) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$13.64, compared to a current price of HK$12.07 — trading 11.5% below its estimated fair value. The current ROC % is 6.13% and 15.9% above the Medical Distribution industry median of 5.29. China National Accord Medicines' overall GF Score™ is 82/100 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 National Accord Medicines (SZSE:200028), the current ROC % is 6.13% 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 China National Accord Medicines (SZSE:200028) Overvalued in 2026?
Based on GuruFocus' analysis, China National Accord Medicines stock appears to be undervalued.
The current stock price of HK$12.07 is trading 11.5% below its estimated GF Value™ of HK$13.64.
GuruFocus considers China National Accord Medicines to be Modestly Undervalued.
Key valuation signals for SZSE:200028:
ROC %: 6.13%
GF Value™: HK$13.64 vs. price of HK$12.07 (11.5% below fair value)
Industry Position: 15.9% above the Medical Distribution median
No single metric tells the full story. See the SZSE:200028 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China National Accord Medicines Corp Ltd develops and manufactures pharmaceuticals in China. The company engaged in the wholesale of Chinese patent drugs, traditional Chinese medicines, chemical medicine preparations, antibiotics, biochemical drugs and cerebrovascular system drugs. It operates through the following segments: The Head office segment engages in investing and managing the business; The Pharmaceutical Distribution segment engages in the distribution of medicine and pharmaceutical products to customers, including hospitals, other distributors, retail drug stores, and clinics, and Retail pharmacy segment, which is managing the operation of Guoda Pharmacy. It generates maximum revenue from the Pharmaceutical Distribution segment.
82GF Score
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