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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. Changmao Biochemical Engineering Co's annualized ROCE % for the quarter that ended in Jun. 2026 was 2.07%.
Changmao Biochemical Engineering Co (HKSE:00954) 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.
Changmao Biochemical Engineering Co ROCE % Related Terms
Changmao Biochemical Engineering 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 (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.
Changmao Biochemical Engineering Co (HKSE:00954) has a ROCE % of 2.07% as of Jun. 2026.
Is Changmao Biochemical Engineering Co's ROCE % too high?
Changmao Biochemical Engineering Co's current ROCE % is 2.07%. The Chemicals industry median ROCE % is 7.51. Changmao Biochemical Engineering Co's value of 2.07% is 72.4% below this industry median. Overall, Changmao Biochemical Engineering Co has a GF Score™ of 34/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Changmao Biochemical Engineering Co's ROCE % compare to LIN and SHW?
Changmao Biochemical Engineering Co's ROCE % of 2.07% can be compared against companies in the Chemicals industry. The industry median ROCE % is 7.51. Changmao Biochemical Engineering Co's value of 2.07% is 72.4% below 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 Chemicals company?
The median ROCE % among Chemicals companies is 7.51, based on 1,599 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. Changmao Biochemical Engineering Co's current ROCE % of 2.07% is 72.4% below 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 Chemicals industry, the median ROCE % is 7.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Changmao Biochemical Engineering Co's current ROCE % is 2.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Changmao Biochemical Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Changmao Biochemical Engineering Co (HKSE:00954) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.36, compared to a current price of HK$0.22 — trading 39.4% below its estimated fair value. The current ROCE % is 2.07% and 72.4% below the Chemicals industry median of 7.51. Changmao Biochemical Engineering Co's overall GF Score™ is 34/100 with 6 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 Changmao Biochemical Engineering Co (HKSE:00954), the current ROCE % is 2.07% 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 Changmao Biochemical Engineering Co (HKSE:00954) Overvalued in 2026?
Based on GuruFocus' analysis, Changmao Biochemical Engineering Co stock appears to be undervalued.
The current stock price of HK$0.22 is trading 39.4% below its estimated GF Value™ of HK$0.36.
GuruFocus considers Changmao Biochemical Engineering Co to be Possible Value Trap.
Key valuation signals for HKSE:00954:
ROCE %: 2.07%
GF Value™: HK$0.36 vs. price of HK$0.22 (39.4% below fair value)
Industry Position: 72.4% below the Chemicals median
No single metric tells the full story. See the HKSE:00954 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Changmao Biochemical Engineering Co Ltd is an organic acid producer in the PRC. It produces organic acids products for sale to the food additive, chemical, and pharmaceutical industries. Its products are organic acids and their derivatives with four carbons in their structures including fumaric acid, maleic acid, L-malic acid, D-malic acid, DL-malic acid, L(+)-tartaric acid, D(-)-tartaric acid, DL-tartaric acid, L-aspartic acid, and aspartame. These products are used as food additives or medical intermediaries. Its products are produced along vertical production chains. Its geographic locations include Mainland China, Europe includes Great Britain, Germany, Turkey, Spain, and Italy, Asia Pacific includes Hong Kong, Indonesia, Australia, India, Thailand and Japan, America, and Others.
34GF Score
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