Luckin Coffee (LTS:0A6U) ROCE %: 14.08% (As of Mar. 2026)


LTS:0A6U Luckin Coffee Inc LTS:0A6U
83 GF Score
Price $12.54
GF Value $20.29
Valuation Significantly Undervalued
! 1 Warning Sign
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What is Luckin Coffee ROCE %?

Luckin Coffee LTS:0A6U 83 ROCE % is 14.08% as of Mar. 2026. GuruFocus rates LTS:0A6U with a GF Score™ of 83/100 and a GF Value™ of $20.29 (Significantly Undervalued). The stock has 1 warning sign 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. Luckin Coffee's annualized ROCE % for the quarter that ended in Mar. 2026 was 14.08%.

Luckin Coffee  (LTS:0A6U) 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.

Luckin Coffee ROCE % Related Terms

Luckin Coffee ROCE % Historical Data

* Premium members only.

The historical data trend for Luckin Coffee'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.

Luckin Coffee ROCE % Chart

Luckin Coffee Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only 7.96 16.53 30.02 25.27 28.02

Luckin Coffee Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.53 39.93 37.23 16.01 14.08
LTS:0A6U
83GF Score
Luckin Coffee Inc LTS:0A6U
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Luckin Coffee ROCE % Calculation

Luckin Coffee'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 )
=749.702/( ( (3176.333 - 918.741) + (4302.247 - 1207.778) )/ 2 )
=749.702/( (2257.592+3094.469)/ 2 )
=749.702/2676.0305
=28.02 %

Luckin Coffee's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=447.932/( ( (4302.247 - 1207.778) + (4627.093 - 1357.49) )/ 2 )
=447.932/( ( 3094.469 + 3269.603 )/ 2 )
=447.932/3182.036
=14.08 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 14.08% mean?
Luckin Coffee (LTS:0A6U) has a ROCE % of 14.08% as of Mar. 2026.
Is Luckin Coffee's ROCE % too high?
Luckin Coffee's current ROCE % is 14.08%. The Restaurants industry median ROCE % is 6.09. Luckin Coffee's value of 14.08% is 131.2% above this industry median. Overall, Luckin Coffee has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Luckin Coffee's ROCE % compare to EAT and CAVA?
Luckin Coffee's ROCE % of 14.08% can be compared against companies in the Restaurants industry. The industry median ROCE % is 6.09. Luckin Coffee's value of 14.08% is 131.2% 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 Restaurants company?
The median ROCE % among Restaurants companies is 6.09, based on 350 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. Luckin Coffee's current ROCE % of 14.08% is 131.2% 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 Restaurants industry, the median ROCE % is 6.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luckin Coffee's current ROCE % is 14.08%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luckin Coffee stock overvalued right now?
Based on GuruFocus' analysis, Luckin Coffee (LTS:0A6U) is currently considered Significantly Undervalued. The stock's GF Value™ is $20.29, compared to a current price of $12.54 — trading 38.2% below its estimated fair value. The current ROCE % is 14.08% and 131.2% above the Restaurants industry median of 6.09. Luckin Coffee's overall GF Score™ is 83/100 with 1 warning sign 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 Luckin Coffee (LTS:0A6U), the current ROCE % is 14.08% as of Mar. 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 Luckin Coffee (LTS:0A6U) Overvalued in 2026?

Based on GuruFocus' analysis, Luckin Coffee stock appears to be undervalued. The current stock price of $12.54 is trading 38.2% below its estimated GF Value™ of $20.29. GuruFocus considers Luckin Coffee to be Significantly Undervalued.

Key valuation signals for LTS:0A6U:

  • ROCE %: 14.08%
  • GF Value™: $20.29 vs. price of $12.54 (38.2% below fair value)
  • GF Score™: 83/100 with 1 warning sign
  • Industry Position: 131.2% above the Restaurants median

No single metric tells the full story. See the LTS:0A6U stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Luckin Coffee Business Description

Other Exchanges LKNCY:USALC0A:Germany
Address 1-3 Taibei Road, 28th Floor, Building T3, Haixi Jingu Plaza, Siming District, Fujian, Xiamen, CHN, 361008
Luckin Coffee Inc operates a coffee network in China, providing retail services for freshly brewed drinks and pre-made food and beverage items. Its technology-driven model is built on mobile apps and a store network, offering a cashier-less purchase experience with features such as store selection, advance ordering, multiple payment options, and real-time order tracking. The company mainly operates self-operated pick-up stores in high-demand locations, enabling rapid and cost-efficient expansion, and also uses partnership and franchise models. It offers multiple products, including coffee, tea drinks, snacks, and light meals, with recipes tailored to local preferences, supported by sourcing and proprietary technology for operations and supply chain management.
83GF Score

Get the complete analysis for LTS:0A6U

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

$12.54
Price
$20.29
GF Value