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 %. Harbin Electric Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 5.86%.
As of today (2026-08-15), Harbin Electric Co's WACC % is 8.91%. Harbin Electric Co's ROIC % is 5.45% (calculated using TTM income statement data).
Harbin Electric Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Harbin Electric Co's WACC % is 8.91%. Harbin Electric Co's ROIC % is 5.45% (calculated using TTM income statement data).
Harbin Electric 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.
Harbin Electric Co ROIC % Related Terms
Harbin Electric Co ROIC % Historical Data
* Premium members only.
The historical data trend for Harbin Electric Co'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 Industrial Machinery subindustry, Harbin Electric 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.
Harbin Electric Co ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Harbin Electric Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Harbin Electric 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.
Harbin Electric Co (FRA:HP6H) has a ROIC % of 5.86% 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 Harbin Electric Co and its competitors.
Is Harbin Electric Co's ROIC % too high?
Harbin Electric Co's current ROIC % is 5.86%. The Industrial Products industry median ROIC % is 5.26. Harbin Electric Co's value of 5.86% is 11.5% above this industry median. Overall, Harbin Electric Co has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Harbin Electric Co's ROIC % compare to GEV and ETN?
Harbin Electric Co's ROIC % of 5.86% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.26. Harbin Electric Co's value of 5.86% is 11.5% 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 Industrial Products company?
The median ROIC % among Industrial Products companies is 5.26, based on 3,030 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. Harbin Electric Co's current ROIC % of 5.86% is 11.5% 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 Harbin Electric Co and its competitors. For the Industrial Products industry, the median ROIC % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Harbin Electric Co's current ROIC % is 5.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Harbin Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Harbin Electric Co (FRA:HP6H) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.50, compared to a current price of €1.89 — trading 278% above its estimated fair value. The current ROIC % is 5.86% and 11.5% above the Industrial Products industry median of 5.26. Harbin Electric Co's overall GF Score™ is 60/100 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 Harbin Electric Co (FRA:HP6H), the current ROIC % is 5.86% 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 Harbin Electric Co (FRA:HP6H) Overvalued in 2026?
Based on GuruFocus' analysis, Harbin Electric Co stock appears to be overvalued.
The current stock price of €1.89 is trading 278% above its estimated GF Value™ of €0.50.
GuruFocus considers Harbin Electric Co to be Significantly Overvalued.
Key valuation signals for FRA:HP6H:
ROIC %: 5.86%
GF Value™: €0.50 vs. price of €1.89 (278% above fair value)
Industry Position: 11.5% above the Industrial Products median
No single metric tells the full story. See the FRA:HP6H stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Harbin Electric Co Ltd is a manufacturer of power plant equipment. The company's main business segments are: large-scale thermal power, hydropower, nuclear power and their auxiliary equipment manufacturing, power station project turnkey projects, ship power units and electrical drive devices and other product development, design and manufacturing. The Company classifies its core business into a business system comprising three segments: New-type power systems, clean and efficient industrial systems, and green and low-carbon driving systems. The company earns majority revenue from New-type power systems segment.
60GF Score
Get the complete analysis for FRA:HP6H
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:HP6H has been successfully added to your 
