ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Fufeng Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 4.01%.
As of today (2026-07-09), Fufeng Group's WACC % is 5.16%. Fufeng Group's ROIC % is 7.03% (calculated using TTM income statement data).
Fufeng 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.
Fufeng Group (FRA:FFO1) 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, Fufeng Group's WACC % is 5.16%. Fufeng Group's ROIC % is 7.03% (calculated using TTM income statement data).
Fufeng 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.
Fufeng Group ROIC % Related Terms
Fufeng Group ROIC % Historical Data
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The historical data trend for Fufeng Group's ROIC % can be seen below:
* 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 Specialty Chemicals subindustry, Fufeng 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.
Fufeng Group ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Fufeng Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Fufeng 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.
Fufeng Group (FRA:FFO1) has a ROIC % of 4.01% 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 Fufeng Group and its competitors.
Is Fufeng Group's ROIC % too high?
Fufeng Group's current ROIC % is 4.01%. The Chemicals industry median ROIC % is 4.47. Fufeng Group's value of 4.01% is 10.3% below this industry median. Overall, Fufeng Group has a GF Score™ of 58/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fufeng Group's ROIC % compare to LIN and SHW?
Fufeng Group's ROIC % of 4.01% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.47. Fufeng Group's value of 4.01% is 10.3% 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.47, based on 1,576 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. Fufeng Group's current ROIC % of 4.01% is 10.3% 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 Fufeng Group and its competitors. For the Chemicals industry, the median ROIC % is 4.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fufeng Group's current ROIC % is 4.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fufeng Group stock overvalued right now?
Based on GuruFocus' analysis, Fufeng Group (FRA:FFO1) is currently considered Fairly Valued. The stock's GF Value™ is €0.56, compared to a current price of €0.54 — trading 4.5% below its estimated fair value. The current ROIC % is 4.01% and 10.3% below the Chemicals industry median of 4.47. Fufeng Group's overall GF Score™ is 58/100 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 Fufeng Group (FRA:FFO1), the current ROIC % is 4.01% 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 Fufeng Group (FRA:FFO1) Overvalued in 2026?
Based on GuruFocus' analysis, Fufeng Group stock appears to be undervalued.
The current stock price of €0.54 is trading 4.5% below its estimated GF Value™ of €0.56.
GuruFocus considers Fufeng Group to be Fairly Valued.
Key valuation signals for FRA:FFO1:
ROIC %: 4.01%
GF Value™: €0.56 vs. price of €0.54 (4.5% below fair value)
Industry Position: 10.3% below the Chemicals median
No single metric tells the full story. See the FRA:FFO1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fufeng Group Ltd manufactures and sells a variety of chemicals used by the food and agricultural industries. The company's operating segments include Food additives, Animal nutrition, High-end amino acid, Colloid, and others. The company generates maximum revenue from the Food additives segment. The Food additives segment is engaged in the manufacturing and sale of food additives products, including monosodium glutamate (MSG), starch sweeteners, glutamic acid, compound seasoning, and corn oil. The majority of revenue comes from China.
58GF Score
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