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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 %. Zhejiang Extek Technology Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was -1.45%.
As of today (2026-08-21), Zhejiang Extek Technology Co's WACC % is 11.33%. Zhejiang Extek Technology Co's ROC % is 1.28% (calculated using TTM income statement data).
Zhejiang Extek Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Zhejiang Extek Technology Co (SZSE:301399) 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, Zhejiang Extek Technology Co's WACC % is 11.33%. Zhejiang Extek Technology Co's ROC % is 1.28% (calculated using TTM income statement data).
Zhejiang Extek Technology 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.
Zhejiang Extek Technology Co ROC % Related Terms
Zhejiang Extek Technology 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.
Zhejiang Extek Technology Co (SZSE:301399) has a ROC % of -1.45% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Zhejiang Extek Technology Co and its competitors.
Is Zhejiang Extek Technology Co's ROC % too high?
Zhejiang Extek Technology Co's current ROC % is -1.45%. Overall, Zhejiang Extek Technology Co has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Extek Technology Co's ROC % compare to GEV and ETN?
Zhejiang Extek Technology Co's ROC % of -1.45% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.30. 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 Industrial Products company?
The median ROC % among Industrial Products companies is 5.30, based on 3,031 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. 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 Zhejiang Extek Technology Co and its competitors. For the Industrial Products industry, the median ROC % is 5.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Extek Technology Co's current ROC % is -1.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Extek Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Extek Technology Co (SZSE:301399) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥12.45, compared to a current price of ¥17.34 — trading 39.3% above its estimated fair value. The current ROC % is -1.45%. Zhejiang Extek Technology Co's overall GF Score™ is 77/100 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 Zhejiang Extek Technology Co (SZSE:301399), the current ROC % is -1.45% 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 Zhejiang Extek Technology Co (SZSE:301399) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Extek Technology Co stock appears to be overvalued.
The current stock price of ¥17.34 is trading 39.3% above its estimated GF Value™ of ¥12.45.
GuruFocus considers Zhejiang Extek Technology Co to be Significantly Overvalued.
Key valuation signals for SZSE:301399:
ROC %: -1.45%
GF Value™: ¥12.45 vs. price of ¥17.34 (39.3% above fair value)
No single metric tells the full story. See the SZSE:301399 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Extek Technology Co Ltd is a high-tech enterprise specializing in the research, development, production and sales of high-efficiency heat exchangers. Its products mainly include high-efficiency new shell-and-tube heat exchangers, and coaxial casing heat Products such as heat exchangers and distributors, as the core components of heat pumps and air conditioners, are widely used in heating, hot water, refrigeration, industrial and agricultural production and other fields.
77GF Score
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