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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 %. Consun Pharmaceutical Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 44.63%.
As of today (2026-07-21), Consun Pharmaceutical Group's WACC % is 10.33%. Consun Pharmaceutical Group's ROIC % is 43.48% (calculated using TTM income statement data).
Consun Pharmaceutical 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.
Consun Pharmaceutical Group (OTCPK:CPHGF) 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, Consun Pharmaceutical Group's WACC % is 10.33%. Consun Pharmaceutical Group's ROIC % is 43.48% (calculated using TTM income statement data).
Consun Pharmaceutical 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.
Consun Pharmaceutical Group ROIC % Related Terms
Consun Pharmaceutical 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 Drug Manufacturers - Specialty & Generic subindustry, Consun Pharmaceutical 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.
Consun Pharmaceutical Group ROIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Consun Pharmaceutical Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Consun Pharmaceutical Group's ROIC % falls into.
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.
Consun Pharmaceutical Group (CPHGF) has a ROIC % of 44.63% 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 Consun Pharmaceutical Group and its competitors.
Is Consun Pharmaceutical Group's ROIC % too high?
Consun Pharmaceutical Group's current ROIC % is 44.63%. The Drug Manufacturers industry median ROIC % is 4.46. Consun Pharmaceutical Group's value of 44.63% is 900.7% above this industry median. Overall, Consun Pharmaceutical Group has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Consun Pharmaceutical Group's ROIC % compare to ZTS and UTHR?
Consun Pharmaceutical Group's ROIC % of 44.63% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.46. Consun Pharmaceutical Group's value of 44.63% is 900.7% 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 Drug Manufacturers company?
The median ROIC % among Drug Manufacturers companies is 4.46, based on 988 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. Consun Pharmaceutical Group's current ROIC % of 44.63% is 900.7% 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 Consun Pharmaceutical Group and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Consun Pharmaceutical Group's current ROIC % is 44.63%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Consun Pharmaceutical Group stock overvalued right now?
Based on GuruFocus' analysis, Consun Pharmaceutical Group (CPHGF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.60, compared to a current price of $1.80 — trading 200% above its estimated fair value. The current ROIC % is 44.63% and 900.7% above the Drug Manufacturers industry median of 4.46. Consun Pharmaceutical Group's overall GF Score™ is 55/100 with 1 warning sign 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 Consun Pharmaceutical Group (CPHGF), the current ROIC % is 44.63% 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 Consun Pharmaceutical Group (CPHGF) Overvalued in 2026?
Based on GuruFocus' analysis, Consun Pharmaceutical Group stock appears to be overvalued.
The current stock price of $1.80 is trading 200% above its estimated GF Value™ of $0.60.
GuruFocus considers Consun Pharmaceutical Group to be Significantly Overvalued.
Key valuation signals for CPHGF:
ROIC %: 44.63%
GF Value™: $0.60 vs. price of $1.80 (200% above fair value)
Industry Position: 900.7% above the Drug Manufacturers median
No single metric tells the full story. See the CPHGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Consun Pharmaceutical Group Ltd is a biotechnology company with a modern pharmaceutical enterprise that integrates R&D, production, and marketing. The company has two reportable segments: the Consun pharmaceutical segment, which is the key revenue driver, and makes and sells modern Chinese medicines and medical contrast medium, and the Yulin pharmaceutical segment, which manufactures and sells traditional Chinese medicines. Company derives revenue from kidney medicines, contrast mediums, orthopedics medicines, dermatologic medicines, hepatobiliary medicines, medicines for women and children, and others.
55GF Score
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