China Telecom (STU:ZCH) ROCE %: 6.93% (As of Mar. 2026)


STU:ZCH China Telecom Corp Ltd STU:ZCH
84 GF Score
Price €0.57
GF Value €0.64
! 7 Warning Signs
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What is China Telecom ROCE %?

China Telecom STU:ZCH 84 ROCE % is 6.93% as of Mar. 2026. GuruFocus rates STU:ZCH with a GF Score™ of 84/100 and a GF Value™ of €0.64. The stock has 7 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. China Telecom's annualized ROCE % for the quarter that ended in Mar. 2026 was 6.93%.

China Telecom  (STU:ZCH) 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.

China Telecom ROCE % Related Terms

China Telecom ROCE % Historical Data

* Premium members only.

The historical data trend for China Telecom'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.

China Telecom ROCE % Chart

China Telecom 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 8.07 7.26 7.68 8.39 7.90

China Telecom 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 8.26 13.56 6.68 3.56 6.93
STU:ZCH
84GF Score
China Telecom Corp Ltd STU:ZCH
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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China Telecom ROCE % Calculation

China Telecom'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 )
=5424.074/( ( (113674.08 - 42679.28) + (105567.068 - 39250.753) )/ 2 )
=5424.074/( (70994.8+66316.315)/ 2 )
=5424.074/68655.5575
=7.90 %

China Telecom'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 )
=4689.408/( ( (105567.068 - 39250.753) + (110329.701 - 41290.726) )/ 2 )
=4689.408/( ( 66316.315 + 69038.975 )/ 2 )
=4689.408/67677.645
=6.93 %

(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 6.93% mean?
China Telecom (STU:ZCH) has a ROCE % of 6.93% as of Mar. 2026.
Is China Telecom's ROCE % too high?
China Telecom's current ROCE % is 6.93%. The Telecommunication Services industry median ROCE % is 7.70. China Telecom's value of 6.93% is 10% below this industry median. Overall, China Telecom has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does China Telecom's ROCE % compare to TMUS and VZ?
China Telecom's ROCE % of 6.93% can be compared against companies in the Telecommunication Services industry. The industry median ROCE % is 7.70. China Telecom's value of 6.93% is 10% below 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 Telecommunication Services company?
The median ROCE % among Telecommunication Services companies is 7.70, based on 353 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. China Telecom's current ROCE % of 6.93% is 10% below 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 Telecommunication Services industry, the median ROCE % is 7.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Telecom's current ROCE % is 6.93%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Telecom stock overvalued right now?
China Telecom (STU:ZCH) has a current ROCE % of 6.93%. The stock's GF Value™ is €0.64, compared to a current price of €0.57 — trading 11.7% below its estimated fair value. The current ROCE % is 6.93% and 10% below the Telecommunication Services industry median of 7.70. China Telecom's overall GF Score™ is 84/100 with 7 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 China Telecom (STU:ZCH), the current ROCE % is 6.93% 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 China Telecom (STU:ZCH) Overvalued in 2026?

Based on GuruFocus' analysis, China Telecom stock appears to be undervalued. The current stock price of €0.57 is trading 11.7% below its estimated GF Value™ of €0.64.

Key valuation signals for STU:ZCH:

  • ROCE %: 6.93%
  • GF Value™: €0.64 vs. price of €0.57 (11.7% below fair value)
  • GF Score™: 84/100 with 7 warning signs
  • Industry Position: 10% below the Telecommunication Services median

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

China Telecom Business Description

Other Exchanges 00728:Hong Kong601728:China
Address 31 Jinrong Street, Xicheng District, Beijing, CHN, 100033
China Telecom is the largest fixed-line operator in China, originally covering 21 southern provinces but now operating nationally. It has 201 million broadband customers, and 439 million wireless subscribers, having overtaken China Unicom to become the second-largest wireless operator in China behind China Mobile. The firm is increasing its cross-selling of products and seeing strong growth from industrial digitization services, such as internet data centers and cloud computing. Its internet data center business is already the largest in China and it is expanding overseas.
84GF Score

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

€0.57
Price
€0.64
GF Value