Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Wisdom Education International Holdings Co's annualized return on invested capital (ROIC %) for the quarter that ended in Feb. 2026 was 5.68%.
Wisdom Education International Holdings Co (FRA:5Q4) 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, Wisdom Education International Holdings Co's WACC % is 3.75%. Wisdom Education International Holdings Co's ROIC % is 1.62% (calculated using TTM income statement data).
Wisdom Education International Holdings Co 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.
Wisdom Education International Holdings Co ROIC % Related Terms
Wisdom Education International Holdings 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.
Wisdom Education International Holdings Co ROIC % Chart
Wisdom Education International Holdings Co Annual Data
For the Education & Training Services subindustry, Wisdom Education International Holdings 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.
Wisdom Education International Holdings Co ROIC % vs Education Industry
Note:
The Operating Income data used here is two times the semi-annual (Feb. 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.
Wisdom Education International Holdings Co (FRA:5Q4) has a ROIC % of 5.68% as of Feb. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Wisdom Education International Holdings Co and its competitors.
Is Wisdom Education International Holdings Co's ROIC % too high?
Wisdom Education International Holdings Co's current ROIC % is 5.68%. The Education industry median ROIC % is 4.94. Wisdom Education International Holdings Co's value of 5.68% is 15% above this industry median.
How does Wisdom Education International Holdings Co's ROIC % compare to EDU and TAL?
Wisdom Education International Holdings Co's ROIC % of 5.68% can be compared against companies in the Education industry. The industry median ROIC % is 4.94. Wisdom Education International Holdings Co's value of 5.68% is 15% 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 Education company?
The median ROIC % among Education companies is 4.94, based on 260 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. Wisdom Education International Holdings Co's current ROIC % of 5.68% is 15% 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 Wisdom Education International Holdings Co and its competitors. For the Education industry, the median ROIC % is 4.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wisdom Education International Holdings Co's current ROIC % is 5.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wisdom Education International Holdings Co stock overvalued right now?
Wisdom Education International Holdings Co (FRA:5Q4) has a current ROIC % of 5.68%. The current ROIC % is 5.68% and 15% above the Education industry median of 4.94. 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 Wisdom Education International Holdings Co (FRA:5Q4), the current ROIC % is 5.68% as of Feb. 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.
Wisdom Education International Holdings Co Ltd is a private education group operating premium primary and secondary schools in China. Its service line includes School-related supply chain business and comprehensive educational services out of which it generates the majority of its revenue from the School-related supply chain business. Geographically it generates key revenue from the Mainland, PRC.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:5Q4 has been successfully added to your 
