ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Chow Tai Fook Jewellery Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 24.34%.
As of today (2026-06-28), Chow Tai Fook Jewellery Group's WACC % is 9.79%. Chow Tai Fook Jewellery Group's ROIC % is 19.63% (calculated using TTM income statement data).
Chow Tai Fook Jewellery Group 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.
Chow Tai Fook Jewellery Group (OTCPK:CJEWF) 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, Chow Tai Fook Jewellery Group's WACC % is 9.79%. Chow Tai Fook Jewellery Group's ROIC % is 19.63% (calculated using TTM income statement data).
Chow Tai Fook Jewellery Group 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.
Chow Tai Fook Jewellery Group ROIC % Related Terms
Chow Tai Fook Jewellery Group 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.
For the Luxury Goods subindustry, Chow Tai Fook Jewellery Group'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.
Chow Tai Fook Jewellery Group ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Chow Tai Fook Jewellery Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Chow Tai Fook Jewellery Group's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Mar. 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.
Chow Tai Fook Jewellery Group (CJEWF) has a ROIC % of 24.34% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Chow Tai Fook Jewellery Group and its competitors.
Is Chow Tai Fook Jewellery Group's ROIC % too high?
Chow Tai Fook Jewellery Group's current ROIC % is 24.34%. The Retail - Cyclical industry median ROIC % is 4.36. Chow Tai Fook Jewellery Group's value of 24.34% is 458.3% above this industry median. Overall, Chow Tai Fook Jewellery Group has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chow Tai Fook Jewellery Group's ROIC % compare to TPR?
Chow Tai Fook Jewellery Group's ROIC % of 24.34% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.36. Chow Tai Fook Jewellery Group's value of 24.34% is 458.3% 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 Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.36, based on 1,108 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. Chow Tai Fook Jewellery Group's current ROIC % of 24.34% is 458.3% 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 Chow Tai Fook Jewellery Group and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chow Tai Fook Jewellery Group's current ROIC % is 24.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chow Tai Fook Jewellery Group stock overvalued right now?
Based on GuruFocus' analysis, Chow Tai Fook Jewellery Group (CJEWF) is currently considered Modestly Undervalued. The stock's GF Value™ is $1.43, compared to a current price of $1.46 — trading 2.1% above its estimated fair value. The current ROIC % is 24.34% and 458.3% above the Retail - Cyclical industry median of 4.36. Chow Tai Fook Jewellery Group'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 Chow Tai Fook Jewellery Group (CJEWF), the current ROIC % is 24.34% 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 Chow Tai Fook Jewellery Group (CJEWF) Overvalued in 2026?
Based on GuruFocus' analysis, Chow Tai Fook Jewellery Group stock appears to be overvalued.
The current stock price of $1.46 is trading 2.1% above its estimated GF Value™ of $1.43.
GuruFocus considers Chow Tai Fook Jewellery Group to be Modestly Undervalued.
Key valuation signals for CJEWF:
ROIC %: 24.34%
GF Value™: $1.43 vs. price of $1.46 (2.1% above fair value)
Industry Position: 458.3% above the Retail - Cyclical median
No single metric tells the full story. See the CJEWF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chow Tai Fook Jewellery Group Business Description
Chow Tai Fook Jewellery Group Ltd core business is the manufacturing and selling of high-end luxury, mass luxury, and youth line jewellery products, and the distribution of watches of various brands. Its brand portfolio includes Chow Tai Fook, Hearts On Fire, Enzo and Monologue, offering a wide multiple products and an expanding range of IP collaborations. The Group's offerings include high jewellery collections and Chow Tai Fook Home, a luxury home decor category. Geographically, the Group operates through Mainland China, Hong Kong, Macau and other markets, with Mainland China contributing the majority of revenue.
87GF Score
Get the complete analysis for CJEWF
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CJEWF has been successfully added to your 
