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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 %. Luen Thai Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 4.45%.
As of today (2026-07-31), Luen Thai Holdings's WACC % is 6.00%. Luen Thai Holdings's ROIC % is 3.44% (calculated using TTM income statement data).
Luen Thai Holdings 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, Luen Thai Holdings's WACC % is 6.00%. Luen Thai Holdings's ROIC % is 3.44% (calculated using TTM income statement data).
Luen Thai Holdings 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.
Luen Thai Holdings ROIC % Related Terms
Luen Thai Holdings ROIC % Historical Data
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The historical data trend for Luen Thai Holdings'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 Apparel Manufacturing subindustry, Luen Thai Holdings'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.
Luen Thai Holdings ROIC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Luen Thai Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Luen Thai Holdings'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.
Luen Thai Holdings (HKSE:00311) has a ROIC % of 4.45% 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 Luen Thai Holdings and its competitors.
Is Luen Thai Holdings' ROIC % too high?
Luen Thai Holdings' current ROIC % is 4.45%. The Manufacturing - Apparel & Accessories industry median ROIC % is 2.90. Luen Thai Holdings' value of 4.45% is 53.7% above this industry median. Overall, Luen Thai Holdings has a GF Score™ of 43/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Luen Thai Holdings' ROIC % compare to RL and LEVI?
Luen Thai Holdings' ROIC % of 4.45% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROIC % is 2.90. Luen Thai Holdings' value of 4.45% is 53.7% 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 Manufacturing - Apparel & Accessories company?
The median ROIC % among Manufacturing - Apparel & Accessories companies is 2.90, based on 1,046 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. Luen Thai Holdings's current ROIC % of 4.45% is 53.7% 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 Luen Thai Holdings and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROIC % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luen Thai Holdings's current ROIC % is 4.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luen Thai Holdings stock overvalued right now?
Based on GuruFocus' analysis, Luen Thai Holdings (HKSE:00311) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.19, compared to a current price of HK$0.23 — trading 22.6% above its estimated fair value. The current ROIC % is 4.45% and 53.7% above the Manufacturing - Apparel & Accessories industry median of 2.90. Luen Thai Holdings' overall GF Score™ is 43/100 with 4 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 Luen Thai Holdings (HKSE:00311), the current ROIC % is 4.45% 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 Luen Thai Holdings (HKSE:00311) Overvalued in 2026?
Based on GuruFocus' analysis, Luen Thai Holdings stock appears to be overvalued.
The current stock price of HK$0.23 is trading 22.6% above its estimated GF Value™ of HK$0.19.
GuruFocus considers Luen Thai Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:00311:
ROIC %: 4.45%
GF Value™: HK$0.19 vs. price of HK$0.23 (22.6% above fair value)
Industry Position: 53.7% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the HKSE:00311 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luen Thai Holdings Ltd principally engaged in the manufacturing and trading of apparels and accessories. The Group has manufacturing plants in the People's Republic of China, Cambodia, the Philippines and Myanmar. The company has two operating segments, Apparel and Accessories. The company generates the majority of its revenue from the Apparel segment. The company has presence in United States, PRC (including Hong Kong and Macao), Europe (including the United Kingdom and Germany), South America (including Mexico and Chile), Canada, Japan, and Others. The company generates majority of revenue from United States.
43GF Score
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