Hengsheng Energy Co (SHSE:605580) ROCE %: 16.89% (As of Mar. 2026)

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SHSE:605580 Hengsheng Energy Co Ltd SHSE:605580
83 GF Score
Price ¥18.98
GF Value ¥15.35
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Hengsheng Energy Co ROCE %?

Hengsheng Energy Co SHSE:605580 +4.00% 83 ROCE % is 16.89% as of Mar. 2026. GuruFocus rates SHSE:605580 with a GF Score™ of 83/100 and a GF Value™ of ¥15.35 (Modestly Overvalued). The stock has 6 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. Hengsheng Energy Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 16.89%.

Hengsheng Energy Co  (SHSE:605580) 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.

Hengsheng Energy Co ROCE % Related Terms

Hengsheng Energy Co ROCE % Historical Data

* Premium members only.

The historical data trend for Hengsheng Energy 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.

Hengsheng Energy Co ROCE % Chart

Hengsheng Energy 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 27.84 20.23 17.58 16.87 15.62

Hengsheng Energy 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 19.06 9.51 10.33 19.27 16.89
SHSE:605580
83GF Score
Hengsheng Energy Co Ltd SHSE:605580
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Hengsheng Energy Co ROCE % Calculation

Hengsheng Energy 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 )
=212.772/( ( (1444.165 - 360.666) + (2295.559 - 654.608) )/ 2 )
=212.772/( (1083.499+1640.951)/ 2 )
=212.772/1362.225
=15.62 %

Hengsheng Energy 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 )
=283.772/( ( (2295.559 - 654.608) + (2273.363 - 554.214) )/ 2 )
=283.772/( ( 1640.951 + 1719.149 )/ 2 )
=283.772/1680.05
=16.89 %

(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 16.89% mean?
Hengsheng Energy Co (SHSE:605580) has a ROCE % of 16.89% as of Mar. 2026.
Is Hengsheng Energy Co's ROCE % too high?
Hengsheng Energy Co's current ROCE % is 16.89%. The Utilities - Independent Power Producers industry median ROCE % is 4.55. Hengsheng Energy Co's value of 16.89% is 271.2% above this industry median. Overall, Hengsheng Energy Co has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hengsheng Energy Co's ROCE % compare to competitors?
Hengsheng Energy Co's ROCE % of 16.89% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROCE % is 4.55. Hengsheng Energy Co's value of 16.89% is 271.2% 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 an Utilities - Independent Power Producers company?
The median ROCE % among Utilities - Independent Power Producers companies is 4.55, based on 445 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. Hengsheng Energy Co's current ROCE % of 16.89% is 271.2% 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 Utilities - Independent Power Producers industry, the median ROCE % is 4.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hengsheng Energy Co's current ROCE % is 16.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hengsheng Energy Co stock overvalued right now?
Based on GuruFocus' analysis, Hengsheng Energy Co (SHSE:605580) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥15.35, compared to a current price of ¥18.98 — trading 23.6% above its estimated fair value. The current ROCE % is 16.89% and 271.2% above the Utilities - Independent Power Producers industry median of 4.55. Hengsheng Energy Co's overall GF Score™ is 83/100 with 6 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 Hengsheng Energy Co (SHSE:605580), the current ROCE % is 16.89% 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 Hengsheng Energy Co (SHSE:605580) Overvalued in 2026?

Based on GuruFocus' analysis, Hengsheng Energy Co stock appears to be overvalued. The current stock price of ¥18.98 is trading 23.6% above its estimated GF Value™ of ¥15.35. GuruFocus considers Hengsheng Energy Co to be Modestly Overvalued.

Key valuation signals for SHSE:605580:

  • ROCE %: 16.89%
  • GF Value™: ¥15.35 vs. price of ¥18.98 (23.6% above fair value)
  • GF Score™: 83/100 with 6 warning signs
  • Industry Position: 271.2% above the Utilities - Independent Power Producers median

No single metric tells the full story. See the SHSE:605580 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Hengsheng Energy Co Business Description

Address No. 10 Xingbei Road, Longyou Industrial Park, Longyou County, Zhejiang Province, Quzhou, CHN, 324400
Hengsheng Energy Co Ltd is engaged in the production and supply of steam, the production and sale of electricity.
83GF Score

Get the complete analysis for SHSE:605580

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

¥18.98
Price
¥15.35
GF Value