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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Henan Tongxin Transmission Co's annualized ROCE % for the quarter that ended in Jun. 2026 was 8.95%.
Henan Tongxin Transmission Co (BJSE:920454) ROCE % Explanation
ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.
Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.
Henan Tongxin Transmission Co ROCE % Related Terms
Henan Tongxin Transmission Co ROCE % 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.
(1) Note:
The EBIT data used here is four times the quarterly (Jun. 2026) EBIT 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.
Henan Tongxin Transmission Co (BJSE:920454) has a ROCE % of 8.95% as of Jun. 2026.
Is Henan Tongxin Transmission Co's ROCE % too high?
Henan Tongxin Transmission Co's current ROCE % is 8.95%. The Vehicles & Parts industry median ROCE % is 8.14. Henan Tongxin Transmission Co's value of 8.95% is 10% above this industry median. Overall, Henan Tongxin Transmission Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Henan Tongxin Transmission Co's ROCE % compare to ORLY and AZO?
Henan Tongxin Transmission Co's ROCE % of 8.95% can be compared against companies in the Vehicles & Parts industry. The industry median ROCE % is 8.14. Henan Tongxin Transmission Co's value of 8.95% is 10% 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 ROCE % for a Vehicles & Parts company?
The median ROCE % among Vehicles & Parts companies is 8.14, based on 1,317 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Henan Tongxin Transmission Co's current ROCE % of 8.95% is 10% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Vehicles & Parts industry, the median ROCE % is 8.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Henan Tongxin Transmission Co's current ROCE % is 8.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Henan Tongxin Transmission Co stock overvalued right now?
Based on GuruFocus' analysis, Henan Tongxin Transmission Co (BJSE:920454) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥13.69, compared to a current price of ¥10.96 — trading 19.9% below its estimated fair value. The current ROCE % is 8.95% and 10% above the Vehicles & Parts industry median of 8.14. Henan Tongxin Transmission Co's overall GF Score™ is 83/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Henan Tongxin Transmission Co (BJSE:920454), the current ROCE % is 8.95% 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 Henan Tongxin Transmission Co (BJSE:920454) Overvalued in 2026?
Based on GuruFocus' analysis, Henan Tongxin Transmission Co stock appears to be undervalued.
The current stock price of ¥10.96 is trading 19.9% below its estimated GF Value™ of ¥13.69.
GuruFocus considers Henan Tongxin Transmission Co to be Modestly Undervalued.
Key valuation signals for BJSE:920454:
ROCE %: 8.95%
GF Value™: ¥13.69 vs. price of ¥10.96 (19.9% below fair value)
Industry Position: 10% above the Vehicles & Parts median
No single metric tells the full story. See the BJSE:920454 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Henan Tongxin Transmission Co Ltd engages in the research and development, production, and sales of all kinds of automobile drive shafts, providing comprehensive one-stop solutions for industry customers. Its product offerings comprise Drive shaft with support (front axle), Telescopic Drive Shaft (Rear Shaft), Coupled drive shafts, Wing drive shafts, and spare parts.
83GF Score
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