Tongwei Co (SHSE:600438) ROCE %: -9.06% (As of Mar. 2026)


SHSE:600438 Tongwei Co Ltd SHSE:600438
62 GF Score
Price ¥11.96
GF Value ¥18.22
Valuation Possible Value Trap
! 8 Warning Signs
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What is Tongwei Co ROCE %?

Tongwei Co SHSE:600438 -2.37% 62 ROCE % is -9.06% as of Mar. 2026. GuruFocus rates SHSE:600438 with a GF Score™ of 62/100 and a GF Value™ of ¥18.22 (Possible Value Trap). The stock has 8 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. Tongwei Co's annualized ROCE % for the quarter that ended in Mar. 2026 was -9.06%.

Tongwei Co  (SHSE:600438) 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.

Tongwei Co ROCE % Related Terms

Tongwei Co ROCE % Historical Data

* Premium members only.

The historical data trend for Tongwei Co'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.

Tongwei Co ROCE % Chart

Tongwei Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.83 46.59 19.98 -4.98 -6.71

Tongwei Co 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 -7.43 -7.44 2.17 -13.29 -9.06
SHSE:600438
62GF Score
Tongwei Co Ltd SHSE:600438
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Tongwei Co ROCE % Calculation

Tongwei Co'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 )
=-9101.802/( ( (195916.763 - 56538.075) + (187779.256 - 55766.509) )/ 2 )
=-9101.802/( (139378.688+132012.747)/ 2 )
=-9101.802/135695.7175
=-6.71 %

Tongwei Co'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 )
=-11606.88/( ( (187779.256 - 55766.509) + (186993.181 - 62648.408) )/ 2 )
=-11606.88/( ( 132012.747 + 124344.773 )/ 2 )
=-11606.88/128178.76
=-9.06 %

(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 -9.06% mean?
Tongwei Co (SHSE:600438) has a ROCE % of -9.06% as of Mar. 2026.
Is Tongwei Co's ROCE % too high?
Tongwei Co's current ROCE % is -9.06%. Overall, Tongwei Co has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tongwei Co's ROCE % compare to FSLR and NXT?
Tongwei Co's ROCE % of -9.06% can be compared against companies in the Semiconductors industry. The industry median ROCE % is 4.81. 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 Semiconductors company?
The median ROCE % among Semiconductors companies is 4.81, based on 1,016 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 Semiconductors industry, the median ROCE % is 4.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tongwei Co's current ROCE % is -9.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongwei Co stock overvalued right now?
Based on GuruFocus' analysis, Tongwei Co (SHSE:600438) is currently considered Possible Value Trap. The stock's GF Value™ is ¥18.22, compared to a current price of ¥11.96 — trading 34.4% below its estimated fair value. The current ROCE % is -9.06%. Tongwei Co's overall GF Score™ is 62/100 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 Tongwei Co (SHSE:600438), the current ROCE % is -9.06% 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 Tongwei Co (SHSE:600438) Overvalued in 2026?

Based on GuruFocus' analysis, Tongwei Co stock appears to be undervalued. The current stock price of ¥11.96 is trading 34.4% below its estimated GF Value™ of ¥18.22. GuruFocus considers Tongwei Co to be Possible Value Trap.

Key valuation signals for SHSE:600438:

  • ROCE %: -9.06%
  • GF Value™: ¥18.22 vs. price of ¥11.96 (34.4% below fair value)
  • GF Score™: 62/100 with 8 warning signs

No single metric tells the full story. See the SHSE:600438 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Tongwei Co Business Description

Address No. 588, Middle Section Tianfu Avenue, High-Tech Zone, China (Sichuan) Pilot Free Trade Zone, Chengdu, CHN, 610041
Tongwei is the world's largest polysilicon producer and a leading solar cell and module supplier. The solar business contributed more than 60% of revenue in 2025. In addition, Tongwei runs a feed and food business, which made up 35% of revenue in 2025.
62GF Score

Get the complete analysis for SHSE:600438

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

¥11.96
Price
¥18.22
GF Value