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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 %. eSun Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2026 was 2.19%.
As of today (2026-08-22), eSun Holdings's WACC % is 4.38%. eSun Holdings's ROIC % is -4.20% (calculated using TTM income statement data).
eSun 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, eSun Holdings's WACC % is 4.38%. eSun Holdings's ROIC % is -4.20% (calculated using TTM income statement data).
eSun 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.
eSun Holdings ROIC % Related Terms
eSun Holdings ROIC % Historical Data
* Premium members only.
The historical data trend for eSun 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 Entertainment subindustry, eSun 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.
eSun Holdings ROIC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, eSun Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where eSun Holdings'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.
eSun Holdings (HKSE:00571) has a ROIC % of 2.19% 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 eSun Holdings and its competitors.
Is eSun Holdings' ROIC % too high?
eSun Holdings' current ROIC % is 2.19%. The Media - Diversified industry median ROIC % is 1.62. eSun Holdings' value of 2.19% is 35.2% above this industry median.
How does eSun Holdings' ROIC % compare to NFLX and DIS?
eSun Holdings' ROIC % of 2.19% can be compared against companies in the Media - Diversified industry. The industry median ROIC % is 1.62. eSun Holdings' value of 2.19% is 35.2% 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 1.62, 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. eSun Holdings's current ROIC % of 2.19% is 35.2% 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 eSun Holdings and its competitors. For the Media - Diversified industry, the median ROIC % is 1.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. eSun Holdings's current ROIC % is 2.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is eSun Holdings stock overvalued right now?
Based on GuruFocus' analysis, eSun Holdings (HKSE:00571) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.04, compared to a current price of HK$0.04 — trading 2.5% above its estimated fair value. The current ROIC % is 2.19% and 35.2% above the Media - Diversified industry median of 1.62. 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 eSun Holdings (HKSE:00571), the current ROIC % is 2.19% 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.
eSun Holdings Ltd is an investment holding company. The company's operating segments include Media and entertainment, Film and TV program, Cinema operation, and Corporate and others. It generates maximum revenue from the Cinema operation segment which engages in the operation of cinemas in Hong Kong and the Chinese Mainland. Geographically, the company generates a majority of its revenue from Hong Kong and the rest from Mainland China and Macau, and other regions.
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