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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 %. Zhou Hei Ya International Holdings Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 2.23%.
Zhou Hei Ya International Holdings Co (FRA:ZHY) 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, Zhou Hei Ya International Holdings Co's WACC % is 8.99%. Zhou Hei Ya International Holdings Co's ROIC % is 4.18% (calculated using TTM income statement data).
Zhou Hei Ya 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.
Zhou Hei Ya International Holdings Co ROIC % Related Terms
Zhou Hei Ya 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.
Zhou Hei Ya International Holdings Co ROIC % Chart
For the Packaged Foods subindustry, Zhou Hei Ya 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.
Zhou Hei Ya International Holdings Co ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Zhou Hei Ya International Holdings Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Zhou Hei Ya International Holdings 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.
Zhou Hei Ya International Holdings Co (FRA:ZHY) has a ROIC % of 2.23% 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 Zhou Hei Ya International Holdings Co and its competitors.
Is Zhou Hei Ya International Holdings Co's ROIC % too high?
Zhou Hei Ya International Holdings Co's current ROIC % is 2.23%. The Consumer Packaged Goods industry median ROIC % is 5.34. Zhou Hei Ya International Holdings Co's value of 2.23% is 58.2% below this industry median. Overall, Zhou Hei Ya International Holdings Co has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Zhou Hei Ya International Holdings Co's ROIC % compare to KHC and GIS?
Zhou Hei Ya International Holdings Co's ROIC % of 2.23% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.34. Zhou Hei Ya International Holdings Co's value of 2.23% is 58.2% 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 Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.34, based on 1,942 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. Zhou Hei Ya International Holdings Co's current ROIC % of 2.23% is 58.2% 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 Zhou Hei Ya International Holdings Co and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhou Hei Ya International Holdings Co's current ROIC % is 2.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhou Hei Ya International Holdings Co stock overvalued right now?
Zhou Hei Ya International Holdings Co (FRA:ZHY) has a current ROIC % of 2.23%. The stock's GF Value™ is €0.18, compared to a current price of €0.09 — trading 49.7% below its estimated fair value. The current ROIC % is 2.23% and 58.2% below the Consumer Packaged Goods industry median of 5.34. Zhou Hei Ya International Holdings Co's overall GF Score™ is 81/100 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 Zhou Hei Ya International Holdings Co (FRA:ZHY), the current ROIC % is 2.23% 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 Zhou Hei Ya International Holdings Co (FRA:ZHY) Overvalued in 2026?
Based on GuruFocus' analysis, Zhou Hei Ya International Holdings Co stock appears to be undervalued.
The current stock price of €0.09 is trading 49.7% below its estimated GF Value™ of €0.18.
Key valuation signals for FRA:ZHY:
ROIC %: 2.23%
GF Value™: €0.18 vs. price of €0.09 (49.7% below fair value)
Industry Position: 58.2% below the Consumer Packaged Goods median
No single metric tells the full story. See the FRA:ZHY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhou Hei Ya International Holdings Co Ltd is a China-based investment holding company. The Company, along with its subsidiaries, is principally engaged in the production, marketing and retailing of casual braised duck-related casual food. The Company mainly sells its products under the brand name of Zhou Hei Ya. Its products mainly include ducks and duck part products, braised red meat, braised vegetable products and other braised poultry. The Company mainly operates its business in domestic market, with Central China and Southern China as its majority markets.
81GF Score
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