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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 %. Tianli Holdings Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 2.01%.
As of today (2026-09-07), Tianli Holdings Group's WACC % is -7.38%. Tianli Holdings Group's ROIC % is 0.95% (calculated using TTM income statement data).
Tianli Holdings 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.
Tianli Holdings Group (HKSE:00117) 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, Tianli Holdings Group's WACC % is -7.38%. Tianli Holdings Group's ROIC % is 0.95% (calculated using TTM income statement data).
Tianli Holdings 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.
* 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 Electronic Components subindustry, Tianli Holdings 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.
Tianli Holdings Group ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, Tianli Holdings Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Tianli Holdings 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.
Tianli Holdings Group (HKSE:00117) has a ROIC % of 2.01% 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 Tianli Holdings Group and its competitors.
Is Tianli Holdings Group's ROIC % too high?
Tianli Holdings Group's current ROIC % is 2.01%. The Hardware industry median ROIC % is 4.43. Tianli Holdings Group's value of 2.01% is 54.6% below this industry median. Overall, Tianli Holdings Group has a GF Score™ of 30/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tianli Holdings Group's ROIC % compare to APH and GLW?
Tianli Holdings Group's ROIC % of 2.01% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.43. Tianli Holdings Group's value of 2.01% is 54.6% 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 Hardware company?
The median ROIC % among Hardware companies is 4.43, based on 2,434 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. Tianli Holdings Group's current ROIC % of 2.01% is 54.6% 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 Tianli Holdings Group and its competitors. For the Hardware industry, the median ROIC % is 4.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tianli Holdings Group's current ROIC % is 2.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tianli Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, Tianli Holdings Group (HKSE:00117) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.60, compared to a current price of HK$2.60 — trading 333.3% above its estimated fair value. The current ROIC % is 2.01% and 54.6% below the Hardware industry median of 4.43. Tianli Holdings Group's overall GF Score™ is 30/100 with 8 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 Tianli Holdings Group (HKSE:00117), the current ROIC % is 2.01% 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 Tianli Holdings Group (HKSE:00117) Overvalued in 2026?
Based on GuruFocus' analysis, Tianli Holdings Group stock appears to be overvalued.
The current stock price of HK$2.60 is trading 333.3% above its estimated GF Value™ of HK$0.60.
GuruFocus considers Tianli Holdings Group to be Significantly Overvalued.
Key valuation signals for HKSE:00117:
ROIC %: 2.01%
GF Value™: HK$0.60 vs. price of HK$2.60 (333.3% above fair value)
Industry Position: 54.6% below the Hardware median
No single metric tells the full story. See the HKSE:00117 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tianli Holdings Group Ltd is engaged in manufacturing and sale of Multi-layer Ceramic Capacitors (MLCC) and investment and financial services. The companies segments include MLCC: manufacturing and sale of MLCC; and Investment and financial services; including but not limited to direct investments in debt, equity and/or any other asset; asset management; provision of financial advisory services; and financial technologies. Geographically, its operations are spread across Mainland China, Hong Kong, and Other Countries.
30GF Score
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