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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 %. Capital Estate's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2026 was -2.34%.
As of today (2026-09-02), Capital Estate's WACC % is 11.80%. Capital Estate's ROIC % is -6.42% (calculated using TTM income statement data).
Capital Estate 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, Capital Estate's WACC % is 11.80%. Capital Estate's ROIC % is -6.42% (calculated using TTM income statement data).
Capital Estate 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.
Capital Estate ROIC % Related Terms
Capital Estate ROIC % Historical Data
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The historical data trend for Capital Estate'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 Lodging subindustry, Capital Estate'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.
Capital Estate ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Capital Estate's ROIC % distribution charts can be found below:
* The bar in red indicates where Capital Estate's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Jan. 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.
Capital Estate (HKSE:00193) has a ROIC % of -2.34% as of Jan. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Capital Estate and its competitors.
Is Capital Estate's ROIC % too high?
Capital Estate's current ROIC % is -2.34%. Overall, Capital Estate has a GF Score™ of 38/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Capital Estate's ROIC % compare to MAR and HLT?
Capital Estate's ROIC % of -2.34% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.74. 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 Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.74, based on 836 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. 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 Capital Estate and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital Estate's current ROIC % is -2.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capital Estate stock overvalued right now?
Based on GuruFocus' analysis, Capital Estate (HKSE:00193) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.17, compared to a current price of HK$0.19 — trading 14.1% above its estimated fair value. The current ROIC % is -2.34%. Capital Estate's overall GF Score™ is 38/100 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 Capital Estate (HKSE:00193), the current ROIC % is -2.34% as of Jan. 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 Capital Estate (HKSE:00193) Overvalued in 2026?
Based on GuruFocus' analysis, Capital Estate stock appears to be overvalued.
The current stock price of HK$0.19 is trading 14.1% above its estimated GF Value™ of HK$0.17.
GuruFocus considers Capital Estate to be Modestly Overvalued.
Key valuation signals for HKSE:00193:
ROIC %: -2.34%
GF Value™: HK$0.17 vs. price of HK$0.19 (14.1% above fair value)
No single metric tells the full story. See the HKSE:00193 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capital Estate Ltd is a Hong Kong-based investment holding company. The company operates through three segments: Hotel Operations, which is engaged in hotel businesses and the provision of related services; Financial Investment segment, which is involved in the trading of listed securities and other financial instruments; Property segment, which engages in leasing and sales of properties; and Consumer Finance, which involves the provision of consumer finance services. The majority of its revenue is derived from Consumer finance. Geographically, it generates maximum revenue from Mainland China.
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