Xiamen Leading Optics Co (SHSE:605118) ROCE %: 19.62% (As of Mar. 2026)


SHSE:605118 Xiamen Leading Optics Co Ltd SHSE:605118
88 GF Score
Price ¥36.16
GF Value ¥27.92
Valuation Modestly Overvalued
! 4 Warning Signs
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What is Xiamen Leading Optics Co ROCE %?

Xiamen Leading Optics Co SHSE:605118 +3.20% 88 ROCE % is 19.62% as of Mar. 2026. GuruFocus rates SHSE:605118 with a GF Score™ of 88/100 and a GF Value™ of ¥27.92 (Modestly 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. Xiamen Leading Optics Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 19.62%.

Xiamen Leading Optics Co  (SHSE:605118) 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.

Xiamen Leading Optics Co ROCE % Related Terms

Xiamen Leading Optics Co ROCE % Historical Data

* Premium members only.

The historical data trend for Xiamen Leading Optics 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.

Xiamen Leading Optics Co ROCE % Chart

Xiamen Leading Optics 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 13.74 13.24 12.04 13.20 18.99

Xiamen Leading Optics 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 16.90 19.83 25.39 14.28 19.62
SHSE:605118
88GF Score
Xiamen Leading Optics Co Ltd SHSE:605118
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Xiamen Leading Optics Co ROCE % Calculation

Xiamen Leading Optics 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 )
=298.877/( ( (1736.156 - 191.038) + (1863.099 - 260.352) )/ 2 )
=298.877/( (1545.118+1602.747)/ 2 )
=298.877/1573.9325
=18.99 %

Xiamen Leading Optics 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 )
=323.136/( ( (1863.099 - 260.352) + (2009.45 - 317.614) )/ 2 )
=323.136/( ( 1602.747 + 1691.836 )/ 2 )
=323.136/1647.2915
=19.62 %

(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 19.62% mean?
Xiamen Leading Optics Co (SHSE:605118) has a ROCE % of 19.62% as of Mar. 2026.
Is Xiamen Leading Optics Co's ROCE % too high?
Xiamen Leading Optics Co's current ROCE % is 19.62%. The Hardware industry median ROCE % is 5.84. Xiamen Leading Optics Co's value of 19.62% is 236% above this industry median. Overall, Xiamen Leading Optics Co has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Xiamen Leading Optics Co's ROCE % compare to APH and GLW?
Xiamen Leading Optics Co's ROCE % of 19.62% can be compared against companies in the Hardware industry. The industry median ROCE % is 5.84. Xiamen Leading Optics Co's value of 19.62% is 236% 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 Hardware company?
The median ROCE % among Hardware companies is 5.84, based on 2,448 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. Xiamen Leading Optics Co's current ROCE % of 19.62% is 236% 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 Hardware industry, the median ROCE % is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiamen Leading Optics Co's current ROCE % is 19.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiamen Leading Optics Co stock overvalued right now?
Based on GuruFocus' analysis, Xiamen Leading Optics Co (SHSE:605118) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥27.92, compared to a current price of ¥36.16 — trading 29.5% above its estimated fair value. The current ROCE % is 19.62% and 236% above the Hardware industry median of 5.84. Xiamen Leading Optics Co's overall GF Score™ is 88/100 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 Xiamen Leading Optics Co (SHSE:605118), the current ROCE % is 19.62% 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 Xiamen Leading Optics Co (SHSE:605118) Overvalued in 2026?

Based on GuruFocus' analysis, Xiamen Leading Optics Co stock appears to be overvalued. The current stock price of ¥36.16 is trading 29.5% above its estimated GF Value™ of ¥27.92. GuruFocus considers Xiamen Leading Optics Co to be Modestly Overvalued.

Key valuation signals for SHSE:605118:

  • ROCE %: 19.62%
  • GF Value™: ¥27.92 vs. price of ¥36.16 (29.5% above fair value)
  • GF Score™: 88/100 with 4 warning signs
  • Industry Position: 236% above the Hardware median

No single metric tells the full story. See the SHSE:605118 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Xiamen Leading Optics Co Business Description

Address Plant 1, No. 26, Xinmei Road, Xinyang Industrial Zone, Haicang District, Fujian Province, Xiamen, CHN, 361028
Xiamen Leading Optics Co Ltd is engaged in design, production and sales of optical lenses. The company's products include Surveillance Lens; Automotives Lens; Machine Vision Lens; ITS Lens; Low Distortion Lens; Consumer Imaging; and Panoramic Lens. Its products are used in multiple fields of application including security surveillance, medical and biological studies and researches, intelligent traffic systems, video conference, intelligent home security, sports camera and many more.
88GF Score

Get the complete analysis for SHSE:605118

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

¥36.16
Price
¥27.92
GF Value