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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. Shenzhen Lifotronic Technology Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 7.36%.
Shenzhen Lifotronic Technology Co (SHSE:688389) 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.
Shenzhen Lifotronic Technology Co ROCE % Related Terms
Shenzhen Lifotronic Technology Co ROCE % Historical 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.
(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.
Shenzhen Lifotronic Technology Co (SHSE:688389) has a ROCE % of 7.36% as of Mar. 2026.
Is Shenzhen Lifotronic Technology Co's ROCE % too high?
Shenzhen Lifotronic Technology Co's current ROCE % is 7.36%. The Medical Devices & Instruments industry median ROCE % is 2.22. Shenzhen Lifotronic Technology Co's value of 7.36% is 231.5% above this industry median. Overall, Shenzhen Lifotronic Technology Co has a GF Score™ of 89/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Lifotronic Technology Co's ROCE % compare to ABT and SYK?
Shenzhen Lifotronic Technology Co's ROCE % of 7.36% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROCE % is 2.22. Shenzhen Lifotronic Technology Co's value of 7.36% is 231.5% 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 Medical Devices & Instruments company?
The median ROCE % among Medical Devices & Instruments companies is 2.22, based on 814 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. Shenzhen Lifotronic Technology Co's current ROCE % of 7.36% is 231.5% 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 Medical Devices & Instruments industry, the median ROCE % is 2.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Lifotronic Technology Co's current ROCE % is 7.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Lifotronic Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Shenzhen Lifotronic Technology Co (SHSE:688389) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥15.69, compared to a current price of ¥10.48 — trading 33.2% below its estimated fair value. The current ROCE % is 7.36% and 231.5% above the Medical Devices & Instruments industry median of 2.22. Shenzhen Lifotronic Technology Co's overall GF Score™ is 89/100 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 Shenzhen Lifotronic Technology Co (SHSE:688389), the current ROCE % is 7.36% 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 Shenzhen Lifotronic Technology Co (SHSE:688389) Overvalued in 2026?
Based on GuruFocus' analysis, Shenzhen Lifotronic Technology Co stock appears to be undervalued.
The current stock price of ¥10.48 is trading 33.2% below its estimated GF Value™ of ¥15.69.
GuruFocus considers Shenzhen Lifotronic Technology Co to be Significantly Undervalued.
Key valuation signals for SHSE:688389:
ROCE %: 7.36%
GF Value™: ¥15.69 vs. price of ¥10.48 (33.2% below fair value)
Industry Position: 231.5% above the Medical Devices & Instruments median
No single metric tells the full story. See the SHSE:688389 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenzhen Lifotronic Technology Co Business Description
Shenzhen Lifotronic Technology Co Ltd is a China based company engaged in the development, production and sales of therapeutic and rehabilitation products, in vitro diagnostic equipment and supporting reagents.
89GF Score
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