Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Pan Asia Environmental Protection Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 43.15%.
As of today (2026-08-19), Pan Asia Environmental Protection Group's WACC % is 2.42%. Pan Asia Environmental Protection Group's ROIC % is 33.46% (calculated using TTM income statement data).
Pan Asia Environmental Protection 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.
Pan Asia Environmental Protection Group (HKSE:00556) 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, Pan Asia Environmental Protection Group's WACC % is 2.42%. Pan Asia Environmental Protection Group's ROIC % is 33.46% (calculated using TTM income statement data).
Pan Asia Environmental Protection 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.
Pan Asia Environmental Protection Group ROIC % Related Terms
Pan Asia Environmental Protection Group 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.
Pan Asia Environmental Protection Group ROIC % Chart
Pan Asia Environmental Protection Group Annual Data
For the Pollution & Treatment Controls subindustry, Pan Asia Environmental Protection 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.
Pan Asia Environmental Protection Group ROIC % vs Industrial Products Industry
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.
Pan Asia Environmental Protection Group (HKSE:00556) has a ROIC % of 43.15% 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 Pan Asia Environmental Protection Group and its competitors.
Is Pan Asia Environmental Protection Group's ROIC % too high?
Pan Asia Environmental Protection Group's current ROIC % is 43.15%. The Industrial Products industry median ROIC % is 5.25. Pan Asia Environmental Protection Group's value of 43.15% is 721.9% above this industry median. Overall, Pan Asia Environmental Protection Group has a GF Score™ of 52/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pan Asia Environmental Protection Group's ROIC % compare to VLTO and ZWS?
Pan Asia Environmental Protection Group's ROIC % of 43.15% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.25. Pan Asia Environmental Protection Group's value of 43.15% is 721.9% 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 an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.25, based on 3,032 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. Pan Asia Environmental Protection Group's current ROIC % of 43.15% is 721.9% 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 Pan Asia Environmental Protection Group and its competitors. For the Industrial Products industry, the median ROIC % is 5.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pan Asia Environmental Protection Group's current ROIC % is 43.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pan Asia Environmental Protection Group stock overvalued right now?
Based on GuruFocus' analysis, Pan Asia Environmental Protection Group (HKSE:00556) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.45, compared to a current price of HK$0.58 — trading 28.9% above its estimated fair value. The current ROIC % is 43.15% and 721.9% above the Industrial Products industry median of 5.25. Pan Asia Environmental Protection Group's overall GF Score™ is 52/100 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 Pan Asia Environmental Protection Group (HKSE:00556), the current ROIC % is 43.15% 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 Pan Asia Environmental Protection Group (HKSE:00556) Overvalued in 2026?
Based on GuruFocus' analysis, Pan Asia Environmental Protection Group stock appears to be overvalued.
The current stock price of HK$0.58 is trading 28.9% above its estimated GF Value™ of HK$0.45.
GuruFocus considers Pan Asia Environmental Protection Group to be Modestly Overvalued.
Key valuation signals for HKSE:00556:
ROIC %: 43.15%
GF Value™: HK$0.45 vs. price of HK$0.58 (28.9% above fair value)
Industry Position: 721.9% above the Industrial Products median
No single metric tells the full story. See the HKSE:00556 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pan Asia Environmental Protection Group Ltd is engaged in the sales of environmental protection (EP) products and equipment, and undertaking of EP construction engineering services in the People's Republic of China (the PRC), and investment holding. The company's segments include EP products and equipment, and EP construction engineering services. Majority of the revenue is derived from the EP products and equipment segment. Geographically, the company operates only in the PRC.
52GF Score
Get the complete analysis for HKSE:00556
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
HKSE:00556 has been successfully added to your 
