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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. Shenzhen SDMC Technology Co's annualized ROCE % for the quarter that ended in Dec. 2025 was 23.97%.
Shenzhen SDMC Technology Co (FRA:6RJ) 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.
Shenzhen SDMC Technology Co ROCE % Related Terms
Shenzhen SDMC Technology 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 two times the semi-annual (Dec. 2025) 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.
Shenzhen SDMC Technology Co (FRA:6RJ) has a ROCE % of 23.97% as of Dec. 2025.
Is Shenzhen SDMC Technology Co's ROCE % too high?
Shenzhen SDMC Technology Co's current ROCE % is 23.97%. The Hardware industry median ROCE % is 5.86. Shenzhen SDMC Technology Co's value of 23.97% is 309% above this industry median. Overall, Shenzhen SDMC Technology Co has a GF Score™ of 28/100, reflecting its overall financial health beyond just this single metric.
How does Shenzhen SDMC Technology Co's ROCE % compare to CSCO and MSI?
Shenzhen SDMC Technology Co's ROCE % of 23.97% can be compared against companies in the Hardware industry. The industry median ROCE % is 5.86. Shenzhen SDMC Technology Co's value of 23.97% is 309% 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 Hardware company?
The median ROCE % among Hardware companies is 5.86, based on 2,451 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. Shenzhen SDMC Technology Co's current ROCE % of 23.97% is 309% 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 Hardware industry, the median ROCE % is 5.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen SDMC Technology Co's current ROCE % is 23.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen SDMC Technology Co stock overvalued right now?
Shenzhen SDMC Technology Co (FRA:6RJ) has a current ROCE % of 23.97%. The current ROCE % is 23.97% and 309% above the Hardware industry median of 5.86. Shenzhen SDMC Technology Co's overall GF Score™ is 28/100 with 3 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 Shenzhen SDMC Technology Co (FRA:6RJ), the current ROCE % is 23.97% as of Dec. 2025. 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.
Shenzhen SDMC Technology Co Ltd is principally engaged in (i) sales of digital video products and network communication products, and (ii) provision of system platforms and services. The majority of revenue was mainly generated from sales of hardware products, namely digital video devices and network communication devices. Its other hardware products include media streaming terminals, speakers, projectors, cameras, optical network terminals, Wi-Fi routers, and cable modems. The company also develops system platforms including Cedar, XHome, and XMediaTV. Geographically, the maximum revenue is generated from Asia.
28GF Score
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