ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Health and Happiness (H&H) International Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 4.90%.
Health and Happiness (H&H) International Holdings (OTCPK:BTSDF) 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, Health and Happiness (H&H) International Holdings's WACC % is 7.04%. Health and Happiness (H&H) International Holdings's ROIC % is 3.89% (calculated using TTM income statement data).
Health and Happiness (H&H) International Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Health and Happiness (H&H) International Holdings ROIC % Related Terms
Health and Happiness (H&H) International Holdings 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.
Health and Happiness (H&H) International Holdings ROIC % Chart
Health and Happiness (H&H) International Holdings Annual Data
* 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.
Health and Happiness (H&H) International Holdings ROIC % vs Consumer Packaged Goods Industry
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) 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.
Health and Happiness (H&H) International Holdings (BTSDF) has a ROIC % of 4.90% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Health and Happiness (H&H) International Holdings and its competitors.
Is Health and Happiness (H&H) International Holdings' ROIC % too high?
Health and Happiness (H&H) International Holdings' current ROIC % is 4.90%. The Consumer Packaged Goods industry median ROIC % is 5.14. Health and Happiness (H&H) International Holdings' value of 4.90% is 4.7% below this industry median. Overall, Health and Happiness (H&H) International Holdings has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.
How does Health and Happiness (H&H) International Holdings' ROIC % compare to KHC and GIS?
Health and Happiness (H&H) International Holdings' ROIC % of 4.90% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.14. Health and Happiness (H&H) International Holdings' value of 4.90% is 4.7% 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 ROIC % for a Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.14, based on 1,948 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. Health and Happiness (H&H) International Holdings's current ROIC % of 4.90% is 4.7% 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 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 Health and Happiness (H&H) International Holdings and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Health and Happiness (H&H) International Holdings's current ROIC % is 4.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Health and Happiness (H&H) International Holdings stock overvalued right now?
Health and Happiness (H&H) International Holdings (BTSDF) has a current ROIC % of 4.90%. The stock's GF Value™ is $1.88, compared to a current price of $1.60 — trading 14.9% below its estimated fair value. The current ROIC % is 4.90% and 4.7% below the Consumer Packaged Goods industry median of 5.14. Health and Happiness (H&H) International Holdings' overall GF Score™ is 87/100 with 3 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 Health and Happiness (H&H) International Holdings (BTSDF), the current ROIC % is 4.90% as of Dec. 2025. 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 Health and Happiness (H&H) International Holdings (BTSDF) Overvalued in 2026?
Based on GuruFocus' analysis, Health and Happiness (H&H) International Holdings stock appears to be undervalued.
The current stock price of $1.60 is trading 14.9% below its estimated GF Value™ of $1.88.
Key valuation signals for BTSDF:
ROIC %: 4.90%
GF Value™: $1.88 vs. price of $1.60 (14.9% below fair value)
Industry Position: 4.7% below the Consumer Packaged Goods median
No single metric tells the full story. See the BTSDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Health and Happiness (H&H) International Holdings Business Description
Health and Happiness (H&H) International Holdings Ltd acts as an investment holding company that manufactures and sells premium pediatric nutrition and baby-care products. The company has core business segments namely Infant formulas; Probiotic and nutritional supplements, Adult nutrition and care products, Other pediatric products & Pet nutrition and care products segments. It generates maximum revenue from Adult nutrition and care products segment. The Infant formulas segment comprises the production of infant formulas for children under seven years old and milk formulas for expectant and nursing mothers. Geographically, the majority of revenue is derived from Mainland China.
87GF Score
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