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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. Longfor Group Holdings's annualized ROCE % for the quarter that ended in Dec. 2025 was -0.36%.
Longfor Group Holdings (HKSE:00960) 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.
* 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.
Longfor Group Holdings (HKSE:00960) has a ROCE % of -0.36% as of Dec. 2025.
Is Longfor Group Holdings' ROCE % too high?
Longfor Group Holdings' current ROCE % is -0.36%. Overall, Longfor Group Holdings has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Longfor Group Holdings' ROCE % compare to competitors?
Longfor Group Holdings' ROCE % of -0.36% can be compared against companies in the Real Estate industry. The industry median ROCE % is 4.64. 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 Real Estate company?
The median ROCE % among Real Estate companies is 4.64, based on 1,758 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. 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 Real Estate industry, the median ROCE % is 4.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Longfor Group Holdings's current ROCE % is -0.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Longfor Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Longfor Group Holdings (HKSE:00960) is currently considered Fairly Valued. The stock's GF Value™ is HK$6.14, compared to a current price of HK$6.60 — trading 7.4% above its estimated fair value. The current ROCE % is -0.36%. Longfor Group Holdings' overall GF Score™ is 71/100 with 8 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 Longfor Group Holdings (HKSE:00960), the current ROCE % is -0.36% 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.
Is Longfor Group Holdings (HKSE:00960) Overvalued in 2026?
Based on GuruFocus' analysis, Longfor Group Holdings stock appears to be overvalued.
The current stock price of HK$6.60 is trading 7.4% above its estimated GF Value™ of HK$6.14.
GuruFocus considers Longfor Group Holdings to be Fairly Valued.
Key valuation signals for HKSE:00960:
ROCE %: -0.36%
GF Value™: HK$6.14 vs. price of HK$6.60 (7.4% above fair value)
No single metric tells the full story. See the HKSE:00960 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Longfor Group Holdings, or Longfor, is a non-state-owned real estate developer in China with contracted sales value placing it among the top 10 of all China's developers. The company focuses on developing high quality residential projects, as well as operating shopping malls and rental apartments in China's wealthier cities. Property development represents the majority of Longfor's revenue and gross profit, while income from commercial properties, property management and project management services have been growing fast. As at end-2025, Wu Yajun remained the largest shareholder with an over 43% equity interest, while her ex-husband Cai Kui has a 23% stake.
71GF Score
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