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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. ZCZL Industrial Technology Group Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 12.21%.
As of today (2026-07-25), ZCZL Industrial Technology Group Co's WACC % is 10.31%. ZCZL Industrial Technology Group Co's ROIC % is 17.12% (calculated using TTM income statement data).
ZCZL Industrial Technology Group 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.
ZCZL Industrial Technology Group Co (FRA:ZGC) 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, ZCZL Industrial Technology Group Co's WACC % is 10.31%. ZCZL Industrial Technology Group Co's ROIC % is 17.12% (calculated using TTM income statement data).
ZCZL Industrial Technology Group 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.
ZCZL Industrial Technology Group Co ROIC % Related Terms
ZCZL Industrial Technology Group 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 Farm & Heavy Construction Machinery subindustry, ZCZL Industrial Technology Group 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.
ZCZL Industrial Technology Group Co ROIC % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, ZCZL Industrial Technology Group Co's ROIC % distribution charts can be found below:
* The bar in red indicates where ZCZL Industrial Technology Group Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 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.
ZCZL Industrial Technology Group Co (FRA:ZGC) has a ROIC % of 12.21% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on ZCZL Industrial Technology Group Co and its competitors.
Is ZCZL Industrial Technology Group Co's ROIC % too high?
ZCZL Industrial Technology Group Co's current ROIC % is 12.21%. The Farm & Heavy Construction Machinery industry median ROIC % is 5.60. ZCZL Industrial Technology Group Co's value of 12.21% is 118% above this industry median. Overall, ZCZL Industrial Technology Group Co has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does ZCZL Industrial Technology Group Co's ROIC % compare to CAT and DE?
ZCZL Industrial Technology Group Co's ROIC % of 12.21% can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median ROIC % is 5.60. ZCZL Industrial Technology Group Co's value of 12.21% is 118% 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 a Farm & Heavy Construction Machinery company?
The median ROIC % among Farm & Heavy Construction Machinery companies is 5.60, based on 207 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. ZCZL Industrial Technology Group Co's current ROIC % of 12.21% is 118% 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 ZCZL Industrial Technology Group Co and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROIC % is 5.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZCZL Industrial Technology Group Co's current ROIC % is 12.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZCZL Industrial Technology Group Co stock overvalued right now?
ZCZL Industrial Technology Group Co (FRA:ZGC) has a current ROIC % of 12.21%. The stock's GF Value™ is €1.70, compared to a current price of €1.51 — trading 11.2% below its estimated fair value. The current ROIC % is 12.21% and 118% above the Farm & Heavy Construction Machinery industry median of 5.60. ZCZL Industrial Technology Group Co's overall GF Score™ is 74/100 with 1 warning sign 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 ZCZL Industrial Technology Group Co (FRA:ZGC), the current ROIC % is 12.21% as of Mar. 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.
Is ZCZL Industrial Technology Group Co (FRA:ZGC) Overvalued in 2026?
Based on GuruFocus' analysis, ZCZL Industrial Technology Group Co stock appears to be undervalued.
The current stock price of €1.51 is trading 11.2% below its estimated GF Value™ of €1.70.
Key valuation signals for FRA:ZGC:
ROIC %: 12.21%
GF Value™: €1.70 vs. price of €1.51 (11.2% below fair value)
Industry Position: 118% above the Farm & Heavy Construction Machinery median
No single metric tells the full story. See the FRA:ZGC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ZCZL Industrial Technology Group Co Business Description
ZCZL Industrial Technology Group Co Ltd is an investment holding company. The Group is a supplier of coal mining comprehensive technology and equipment, and automotive parts manufacturing enterprise. The company's operating segment includes the manufacture of coal mining machinery, the manufacture of auto parts, and Industrial intelligence products. The main products are Intelligent working faces, Filling support, Caving support, Shield Support, Scraper Machine, and others. Geographically, the company operates in the PRC, Germany, and other countries.
74GF Score
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