ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. CSSC (Hong Kong) Shipping Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 5.78%.
As of today (2026-06-25), CSSC (Hong Kong) Shipping Co's WACC % is 3.82%. CSSC (Hong Kong) Shipping Co's ROIC % is 6.33% (calculated using TTM income statement data).
CSSC (Hong Kong) Shipping 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.
CSSC (Hong Kong) Shipping Co (FRA:3LL) 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, CSSC (Hong Kong) Shipping Co's WACC % is 3.82%. CSSC (Hong Kong) Shipping Co's ROIC % is 6.33% (calculated using TTM income statement data).
CSSC (Hong Kong) Shipping 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.
CSSC (Hong Kong) Shipping Co ROIC % Related Terms
CSSC (Hong Kong) Shipping 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.
For the Rental & Leasing Services subindustry, CSSC (Hong Kong) Shipping Co'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.
CSSC (Hong Kong) Shipping Co ROIC % vs Business Services Industry
For the Business Services industry and Industrials sector, CSSC (Hong Kong) Shipping Co's ROIC % distribution charts can be found below:
* The bar in red indicates where CSSC (Hong Kong) Shipping Co'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.
CSSC (Hong Kong) Shipping Co (FRA:3LL) has a ROIC % of 5.78% 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 CSSC (Hong Kong) Shipping Co and its competitors.
Is CSSC (Hong Kong) Shipping Co's ROIC % too high?
CSSC (Hong Kong) Shipping Co's current ROIC % is 5.78%. The Business Services industry median ROIC % is 5.93. CSSC (Hong Kong) Shipping Co's value of 5.78% is 2.5% below this industry median. Overall, CSSC (Hong Kong) Shipping Co has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CSSC (Hong Kong) Shipping Co's ROIC % compare to URI and SUNB?
CSSC (Hong Kong) Shipping Co's ROIC % of 5.78% can be compared against companies in the Business Services industry. The industry median ROIC % is 5.93. CSSC (Hong Kong) Shipping Co's value of 5.78% is 2.5% 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 Business Services company?
The median ROIC % among Business Services companies is 5.93, based on 1,075 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. CSSC (Hong Kong) Shipping Co's current ROIC % of 5.78% is 2.5% 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 CSSC (Hong Kong) Shipping Co and its competitors. For the Business Services industry, the median ROIC % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CSSC (Hong Kong) Shipping Co's current ROIC % is 5.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CSSC (Hong Kong) Shipping Co stock overvalued right now?
Based on GuruFocus' analysis, CSSC (Hong Kong) Shipping Co (FRA:3LL) is currently considered Modestly Overvalued. The stock's GF Value™ is €0.19, compared to a current price of €0.24 — trading 28.4% above its estimated fair value. The current ROIC % is 5.78% and 2.5% below the Business Services industry median of 5.93. CSSC (Hong Kong) Shipping Co's overall GF Score™ is 82/100 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 CSSC (Hong Kong) Shipping Co (FRA:3LL), the current ROIC % is 5.78% 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 CSSC (Hong Kong) Shipping Co (FRA:3LL) Overvalued in 2026?
Based on GuruFocus' analysis, CSSC (Hong Kong) Shipping Co stock appears to be overvalued.
The current stock price of €0.24 is trading 28.4% above its estimated GF Value™ of €0.19.
GuruFocus considers CSSC (Hong Kong) Shipping Co to be Modestly Overvalued.
Key valuation signals for FRA:3LL:
ROIC %: 5.78%
GF Value™: €0.19 vs. price of €0.24 (28.4% above fair value)
Industry Position: 2.5% below the Business Services median
No single metric tells the full story. See the FRA:3LL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CSSC (Hong Kong) Shipping Co Ltd is a ship leasing, investment, and operation company. Together with its subsidiaries, it provides integrated shipping services (including operating leases and shipbroking services) and financial services (including finance leases and loans). The group's operating segments are integrated shipping services and financing services. A majority of its revenue is generated from the Integrated shipping services segment, which includes operating lease services to the group's customers and shipbroking services to shipbuilders and charterers. The Financing services segment includes finance lease services and loan borrowing services to its customers. Geographically, its customers are located in the People's Republic of China, Asia, the United States, and Europe.
82GF Score
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