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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 %. BFB Health's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 9.29%.
As of today (2026-08-19), BFB Health's WACC % is 16.69%. BFB Health's ROIC % is -3.73% (calculated using TTM income statement data).
BFB Health 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, BFB Health's WACC % is 16.69%. BFB Health's ROIC % is -3.73% (calculated using TTM income statement data).
BFB Health 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.
BFB Health ROIC % Related Terms
BFB Health ROIC % Historical Data
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The historical data trend for BFB Health'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 Advertising Agencies subindustry, BFB Health'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.
BFB Health ROIC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, BFB Health's ROIC % distribution charts can be found below:
* The bar in red indicates where BFB Health'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.
BFB Health (HKSE:00205) has a ROIC % of 9.29% 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 BFB Health and its competitors.
Is BFB Health's ROIC % too high?
BFB Health's current ROIC % is 9.29%. The Media - Diversified industry median ROIC % is 1.57. BFB Health's value of 9.29% is 491.7% above this industry median. Overall, BFB Health has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BFB Health's ROIC % compare to APP and OMC?
BFB Health's ROIC % of 9.29% can be compared against companies in the Media - Diversified industry. The industry median ROIC % is 1.57. BFB Health's value of 9.29% is 491.7% 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 Media - Diversified company?
The median ROIC % among Media - Diversified companies is 1.57, based on 1,006 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. BFB Health's current ROIC % of 9.29% is 491.7% 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 BFB Health and its competitors. For the Media - Diversified industry, the median ROIC % is 1.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BFB Health's current ROIC % is 9.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BFB Health stock overvalued right now?
Based on GuruFocus' analysis, BFB Health (HKSE:00205) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.14, compared to a current price of HK$0.55 — trading 292.9% above its estimated fair value. The current ROIC % is 9.29% and 491.7% above the Media - Diversified industry median of 1.57. BFB Health's overall GF Score™ is 36/100 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 BFB Health (HKSE:00205), the current ROIC % is 9.29% 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 BFB Health (HKSE:00205) Overvalued in 2026?
Based on GuruFocus' analysis, BFB Health stock appears to be overvalued.
The current stock price of HK$0.55 is trading 292.9% above its estimated GF Value™ of HK$0.14.
GuruFocus considers BFB Health to be Significantly Overvalued.
Key valuation signals for HKSE:00205:
ROIC %: 9.29%
GF Value™: HK$0.14 vs. price of HK$0.55 (292.9% above fair value)
Industry Position: 491.7% above the Media - Diversified median
No single metric tells the full story. See the HKSE:00205 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BFB Health Ltd is an investment holding company. Along with its subsidiaries, it operates in the following reportable segments: Provision of advertising and e-commerce business, Provision of securities broking services, and Money lending. Maximum revenue is derived from the Provision of advertising and e-commerce business, which generates the majority of its revenue from the sales of health and wellness products, through e-commerce channels, and the rest comes from the provision of advertising services, sales of books and magazines, and multi-channel network activities. Geographically, the Group generates maximum revenue from the People's Republic of China (PRC), and the rest from Hong Kong.
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