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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. China Geokon Instruments Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 15.58%.
As of today (2026-08-31), China Geokon Instruments Co's WACC % is 12.22%. China Geokon Instruments Co's ROIC % is 17.30% (calculated using TTM income statement data).
China Geokon Instruments Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
China Geokon Instruments Co (BJSE:920879) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, China Geokon Instruments Co's WACC % is 12.22%. China Geokon Instruments Co's ROIC % is 17.30% (calculated using TTM income statement data).
China Geokon Instruments Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
China Geokon Instruments Co ROIC % Related Terms
China Geokon Instruments Co ROIC % 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.
BJSE:920879 vs GRMN, COHR, KEYS: ROIC % Comparison
For the Scientific & Technical Instruments subindustry, China Geokon Instruments Co's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
China Geokon Instruments Co ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, China Geokon Instruments Co's ROIC % distribution charts can be found below:
* The bar in red indicates where China Geokon Instruments Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 Geokon Instruments Co (BJSE:920879) has a ROIC % of 15.58% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on China Geokon Instruments Co and its competitors.
Is China Geokon Instruments Co's ROIC % too high?
China Geokon Instruments Co's current ROIC % is 15.58%. The Hardware industry median ROIC % is 4.37. China Geokon Instruments Co's value of 15.58% is 256.5% above this industry median. Overall, China Geokon Instruments Co has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Geokon Instruments Co's ROIC % compare to GRMN and COHR?
China Geokon Instruments Co's ROIC % of 15.58% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.37. China Geokon Instruments Co's value of 15.58% is 256.5% 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 ROIC % for a Hardware company?
The median ROIC % among Hardware companies is 4.37, based on 2,442 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Geokon Instruments Co's current ROIC % of 15.58% is 256.5% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on China Geokon Instruments Co and its competitors. For the Hardware industry, the median ROIC % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Geokon Instruments Co's current ROIC % is 15.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Geokon Instruments Co stock overvalued right now?
Based on GuruFocus' analysis, China Geokon Instruments Co (BJSE:920879) is currently considered Fairly Valued. The stock's GF Value™ is ¥12.15, compared to a current price of ¥13.39 — trading 10.2% above its estimated fair value. The current ROIC % is 15.58% and 256.5% above the Hardware industry median of 4.37. China Geokon Instruments Co's overall GF Score™ is 87/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For China Geokon Instruments Co (BJSE:920879), the current ROIC % is 15.58% as of Jun. 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 Geokon Instruments Co (BJSE:920879) Overvalued in 2026?
Based on GuruFocus' analysis, China Geokon Instruments Co stock appears to be overvalued.
The current stock price of ¥13.39 is trading 10.2% above its estimated GF Value™ of ¥12.15.
GuruFocus considers China Geokon Instruments Co to be Fairly Valued.
Key valuation signals for BJSE:920879:
ROIC %: 15.58%
GF Value™: ¥12.15 vs. price of ¥13.39 (10.2% above fair value)
Industry Position: 256.5% above the Hardware median
No single metric tells the full story. See the BJSE:920879 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Geokon Instruments Co Ltd is a tech enterprise engaged in the research and development, production and sales of intelligent monitoring terminals, as well as providing security monitoring IoT solutions and services. Its products are mainly used in engineering Safety monitoring and field environmental monitoring, hydropower stations, nuclear power stations, wind farms, oil and gas storage and transportation, water conservancy projects, subways, high-speed rails, bridges, tunnels, ports, municipal buildings, cultural relics, mines, geological disasters. It offers monitoring sensors, data acquisition equipment, and Safety Monitoring Management Software.
87GF Score
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