HLP (Hongli Group) ROCE %: 4.53% (As of Dec. 2025)


HLP Hongli Group Inc HLP
36 GF Score
Price $0.53
GF Value $0.35
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Hongli Group ROCE %?

Hongli Group HLP +8.35% 36 ROCE % is 4.53% as of Dec. 2025. GuruFocus rates HLP with a GF Score™ of 36/100 and a GF Value™ of $0.35 (Significantly Overvalued). The stock has 4 warning signs investors should review.

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. Hongli Group's annualized ROCE % for the quarter that ended in Dec. 2025 was 4.53%.

Hongli Group  (NAS:HLP) 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.

Hongli Group ROCE % Related Terms

Hongli Group ROCE % Historical Data

* Premium members only.

The historical data trend for Hongli Group's ROCE % can be seen below:

* 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.

Hongli Group ROCE % Chart

Hongli Group Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial 39.64 19.26 6.49 -3.46 4.61

Hongli Group Semi-Annual Data
Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.10 -13.73 1.32 4.83 4.53
HLP
36GF Score
Hongli Group Inc HLP
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Hongli Group ROCE % Calculation

Hongli Group's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=2.641/( ( (65.01 - 8.212) + (72.191 - 14.359) )/ 2 )
=2.641/( (56.798+57.832)/ 2 )
=2.641/57.315
=4.61 %

Hongli Group's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=2.568/( ( (67.844 - 12.265) + (72.191 - 14.359) )/ 2 )
=2.568/( ( 55.579 + 57.832 )/ 2 )
=2.568/56.7055
=4.53 %

(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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 4.53% mean?
Hongli Group (HLP) has a ROCE % of 4.53% as of Dec. 2025.
Is Hongli Group's ROCE % too high?
Hongli Group's current ROCE % is 4.53%. The Steel industry median ROCE % is 5.63. Hongli Group's value of 4.53% is 19.5% below this industry median. Overall, Hongli Group has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hongli Group's ROCE % compare to HUDI and ZKIN?
Hongli Group's ROCE % of 4.53% can be compared against companies in the Steel industry. The industry median ROCE % is 5.63. Hongli Group's value of 4.53% is 19.5% 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 Steel company?
The median ROCE % among Steel companies is 5.63, based on 624 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. Hongli Group's current ROCE % of 4.53% is 19.5% 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 Steel industry, the median ROCE % is 5.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongli Group's current ROCE % is 4.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongli Group stock overvalued right now?
Based on GuruFocus' analysis, Hongli Group (HLP) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.35, compared to a current price of $0.53 — trading 50.5% above its estimated fair value. The current ROCE % is 4.53% and 19.5% below the Steel industry median of 5.63. Hongli Group's overall GF Score™ is 36/100 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 Hongli Group (HLP), the current ROCE % is 4.53% 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 Hongli Group (HLP) Overvalued in 2026?

Based on GuruFocus' analysis, Hongli Group stock appears to be overvalued. The current stock price of $0.53 is trading 50.5% above its estimated GF Value™ of $0.35. GuruFocus considers Hongli Group to be Significantly Overvalued.

Key valuation signals for HLP:

  • ROCE %: 4.53%
  • GF Value™: $0.35 vs. price of $0.53 (50.5% above fair value)
  • GF Score™: 36/100 with 4 warning signs
  • Industry Position: 19.5% below the Steel median

No single metric tells the full story. See the HLP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Hongli Group Business Description

Address No. 777, Daiyi Road, Changle County, Shandong Province, Weifang, CHN, 262400
Hongli Group Inc is an offshore holding company. Through its subsidiaries, it is engaged in the cold-rolled steel profile manufacturing in China. Its main business operation focuses on the design, production, deep processing, and sales of custom-made profiles for machinery and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture, and transportation industries. The group operates in a single segment, which manufactures and sells agricultural machinery cab assemblies, construction machinery cab assemblies, excavator cab assemblies, and special-shaped steel pipes. It generates the majority of its reveneue from PRC.
36GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$0.53
Price
$0.35
GF Value