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 High Speed Transmission Equipment Group Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2025 was 7.15%.
As of today (2026-06-28), China High Speed Transmission Equipment Group Co's WACC % is 6.17%. China High Speed Transmission Equipment Group Co's ROIC % is 9.08% (calculated using TTM income statement data).
China High Speed Transmission Equipment Group 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 High Speed Transmission Equipment Group Co (OTCPK:CHSTF) 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 High Speed Transmission Equipment Group Co's WACC % is 6.17%. China High Speed Transmission Equipment Group Co's ROIC % is 9.08% (calculated using TTM income statement data).
China High Speed Transmission Equipment Group 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 High Speed Transmission Equipment Group Co ROIC % Related Terms
China High Speed Transmission Equipment Group 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.
China High Speed Transmission Equipment Group Co ROIC % Chart
China High Speed Transmission Equipment Group Co 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.
China High Speed Transmission Equipment Group Co ROIC % vs Industrial Products Industry
Note:
The Operating Income data used here is two times the semi-annual (Jun. 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.
China High Speed Transmission Equipment Group Co (CHSTF) has a ROIC % of 7.15% as of Jun. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on China High Speed Transmission Equipment Group Co and its competitors.
Is China High Speed Transmission Equipment Group Co's ROIC % too high?
China High Speed Transmission Equipment Group Co's current ROIC % is 7.15%. The Industrial Products industry median ROIC % is 5.22. China High Speed Transmission Equipment Group Co's value of 7.15% is 37.1% above this industry median. Overall, China High Speed Transmission Equipment Group Co has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does China High Speed Transmission Equipment Group Co's ROIC % compare to GEV and ETN?
China High Speed Transmission Equipment Group Co's ROIC % of 7.15% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.22. China High Speed Transmission Equipment Group Co's value of 7.15% is 37.1% 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 an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.22, based on 3,034 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 High Speed Transmission Equipment Group Co's current ROIC % of 7.15% is 37.1% 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 High Speed Transmission Equipment Group Co and its competitors. For the Industrial Products industry, the median ROIC % is 5.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China High Speed Transmission Equipment Group Co's current ROIC % is 7.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China High Speed Transmission Equipment Group Co stock overvalued right now?
China High Speed Transmission Equipment Group Co (CHSTF) has a current ROIC % of 7.15%. The stock's GF Value™ is $0.21, compared to a current price of $0.21 — trading 1.8% below its estimated fair value. The current ROIC % is 7.15% and 37.1% above the Industrial Products industry median of 5.22. China High Speed Transmission Equipment Group Co's overall GF Score™ is 73/100 with 6 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 High Speed Transmission Equipment Group Co (CHSTF), the current ROIC % is 7.15% as of Jun. 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 China High Speed Transmission Equipment Group Co (CHSTF) Overvalued in 2026?
Based on GuruFocus' analysis, China High Speed Transmission Equipment Group Co stock appears to be undervalued.
The current stock price of $0.21 is trading 1.8% below its estimated GF Value™ of $0.21.
Key valuation signals for CHSTF:
ROIC %: 7.15%
GF Value™: $0.21 vs. price of $0.21 (1.8% below fair value)
Industry Position: 37.1% above the Industrial Products median
No single metric tells the full story. See the CHSTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China High Speed Transmission Equipment Group Co Business Description
China High Speed Transmission Equipment Group Co Ltd is engaged in researching, developing, designing, manufacturing, and distributing a wide range of mechanical transmission equipment that is used in wind power and a wide range of industrial appliances and trading of goods. Its product portfolio includes Wind Energy Gearboxes, Rail Vehicle Gearboxes, Industrial Gearboxes, New Energy Vehicle Gearboxes, GearSight System, and others. The company's segment includes Wind and industrial gear transmission equipment, which generates key revenue; the Rail transportation gear transmission equipment segment; the Trading business, and others. Geographically, the company generates a majority of its revenue from the People's Republic of China and the rest from Europe, the USA, and other countries.
73GF Score
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