ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Zhuzhou CRRC Times Electric Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.40%.
As of today (2026-07-01), Zhuzhou CRRC Times Electric Co's WACC % is 10.14%. Zhuzhou CRRC Times Electric Co's ROIC % is 8.53% (calculated using TTM income statement data).
Zhuzhou CRRC Times Electric Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Zhuzhou CRRC Times Electric Co (FRA:ZTX) 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, Zhuzhou CRRC Times Electric Co's WACC % is 10.14%. Zhuzhou CRRC Times Electric Co's ROIC % is 8.53% (calculated using TTM income statement data).
Zhuzhou CRRC Times 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.
Zhuzhou CRRC Times Electric Co ROIC % Related Terms
Zhuzhou CRRC Times Electric 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 Railroads subindustry, Zhuzhou CRRC Times 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.
Zhuzhou CRRC Times Electric Co ROIC % vs Transportation Industry
For the Transportation industry and Industrials sector, Zhuzhou CRRC Times Electric Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Zhuzhou CRRC Times Electric 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.
Zhuzhou CRRC Times Electric Co (FRA:ZTX) has a ROIC % of 5.40% 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 Zhuzhou CRRC Times Electric Co and its competitors.
Is Zhuzhou CRRC Times Electric Co's ROIC % too high?
Zhuzhou CRRC Times Electric Co's current ROIC % is 5.40%. The Transportation industry median ROIC % is 4.69. Zhuzhou CRRC Times Electric Co's value of 5.40% is 15.1% above this industry median. Overall, Zhuzhou CRRC Times Electric Co has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zhuzhou CRRC Times Electric Co's ROIC % compare to UNP and CSX?
Zhuzhou CRRC Times Electric Co's ROIC % of 5.40% can be compared against companies in the Transportation industry. The industry median ROIC % is 4.69. Zhuzhou CRRC Times Electric Co's value of 5.40% is 15.1% 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 Transportation company?
The median ROIC % among Transportation companies is 4.69, based on 986 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. Zhuzhou CRRC Times Electric Co's current ROIC % of 5.40% is 15.1% 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 Zhuzhou CRRC Times Electric Co and its competitors. For the Transportation industry, the median ROIC % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhuzhou CRRC Times Electric Co's current ROIC % is 5.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhuzhou CRRC Times Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Zhuzhou CRRC Times Electric Co (FRA:ZTX) is currently considered Fairly Valued. The stock's GF Value™ is €4.71, compared to a current price of €4.36 — trading 7.4% below its estimated fair value. The current ROIC % is 5.40% and 15.1% above the Transportation industry median of 4.69. Zhuzhou CRRC Times Electric Co's overall GF Score™ is 93/100 with 5 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 Zhuzhou CRRC Times Electric Co (FRA:ZTX), the current ROIC % is 5.40% 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 Zhuzhou CRRC Times Electric Co (FRA:ZTX) Overvalued in 2026?
Based on GuruFocus' analysis, Zhuzhou CRRC Times Electric Co stock appears to be undervalued.
The current stock price of €4.36 is trading 7.4% below its estimated GF Value™ of €4.71.
GuruFocus considers Zhuzhou CRRC Times Electric Co to be Fairly Valued.
Key valuation signals for FRA:ZTX:
ROIC %: 5.40%
GF Value™: €4.71 vs. price of €4.36 (7.4% below fair value)
Industry Position: 15.1% above the Transportation median
No single metric tells the full story. See the FRA:ZTX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhuzhou CRRC Times Electric Co Business Description
Zhuzhou CRRC Times Electric Co Ltd is in the R&D, design, manufacturing, and sales of rail transit equipment products and the provision of related services, and has an industrial structure of components, systems, and complete machines. Its products mainly include rail transit electrical equipment, railway engineering machinery, communication signal systems, and others. Meanwhile, the Company actively expands to industries other than rail transit and conducts business in the fields of semiconductors, automobiles, new energy, marine, and industrial operations. The Company operates in the domestic market and overseas markets.
93GF Score
Get the complete analysis for FRA:ZTX
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:ZTX has been successfully added to your 
