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 Evergrande Group's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was 0.09%.
As of today (2026-06-27), China Evergrande Group's WACC % is 0.00%. China Evergrande Group's ROIC % is 0.00% (calculated using TTM income statement data).
China Evergrande Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
China Evergrande Group (OTCPK:EGRNF) 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 Evergrande Group's WACC % is 0.00%. China Evergrande Group's ROIC % is 0.00% (calculated using TTM income statement data).
China Evergrande Group 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.
* 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 Evergrande Group ROIC % Competitor Comparison
For the Real Estate - Development subindustry, China Evergrande 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.
China Evergrande Group ROIC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, China Evergrande Group's ROIC % distribution charts can be found below:
* The bar in red indicates where China Evergrande Group's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Jun. 2023) 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 Evergrande Group (EGRNF) has a ROIC % of 0.09% as of Jun. 2023. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on China Evergrande Group and its competitors.
Is China Evergrande Group's ROIC % too high?
China Evergrande Group's current ROIC % is 0.09%. The Real Estate industry median ROIC % is 2.19. China Evergrande Group's value of 0.09% is 95.9% below this industry median. Overall, China Evergrande Group has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does China Evergrande Group's ROIC % compare to competitors?
China Evergrande Group's ROIC % of 0.09% can be compared against companies in the Real Estate industry. The industry median ROIC % is 2.19. China Evergrande Group's value of 0.09% is 95.9% 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 Real Estate company?
The median ROIC % among Real Estate companies is 2.19, based on 1,757 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 Evergrande Group's current ROIC % of 0.09% is 95.9% 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 China Evergrande Group and its competitors. For the Real Estate industry, the median ROIC % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Evergrande Group's current ROIC % is 0.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Evergrande Group stock overvalued right now?
China Evergrande Group (EGRNF) has a current ROIC % of 0.09%. The current ROIC % is 0.09% and 95.9% below the Real Estate industry median of 2.19. China Evergrande Group's overall GF Score™ is 12/100. 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 Evergrande Group (EGRNF), the current ROIC % is 0.09% as of Jun. 2023. 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.
China Evergrande Group is engaged in the property development, property investment, property management, new energy vehicle business, cultural tourism business and health industry business principally in the People's Republic of China. The company is organized into four business segments: property development, property investment, property management and other businesses. Other businesses mainly include new energy vehicle business, cultural tourism business, health industry business and investment business.
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