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 %. Majestic Dragon AeroTech Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -6.40%.
As of today (2026-08-13), Majestic Dragon AeroTech Holdings's WACC % is 9.84%. Majestic Dragon AeroTech Holdings's ROIC % is 0.21% (calculated using TTM income statement data).
Majestic Dragon AeroTech 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, Majestic Dragon AeroTech Holdings's WACC % is 9.84%. Majestic Dragon AeroTech Holdings's ROIC % is 0.21% (calculated using TTM income statement data).
Majestic Dragon AeroTech 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.
Majestic Dragon AeroTech Holdings ROIC % Related Terms
Majestic Dragon AeroTech Holdings 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.
For the Apparel Manufacturing subindustry, Majestic Dragon AeroTech 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.
Majestic Dragon AeroTech Holdings ROIC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Majestic Dragon AeroTech Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Majestic Dragon AeroTech Holdings's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Mar. 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.
Majestic Dragon AeroTech Holdings (HKSE:00918) has a ROIC % of -6.40% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Majestic Dragon AeroTech Holdings and its competitors.
Is Majestic Dragon AeroTech Holdings' ROIC % too high?
Majestic Dragon AeroTech Holdings' current ROIC % is -6.40%. Overall, Majestic Dragon AeroTech Holdings has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Majestic Dragon AeroTech Holdings' ROIC % compare to RL and LEVI?
Majestic Dragon AeroTech Holdings' ROIC % of -6.40% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROIC % is 3.12. 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 3.12, based on 1,041 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 Majestic Dragon AeroTech Holdings and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROIC % is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Majestic Dragon AeroTech Holdings's current ROIC % is -6.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Majestic Dragon AeroTech Holdings stock overvalued right now?
Based on GuruFocus' analysis, Majestic Dragon AeroTech Holdings (HKSE:00918) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.30, compared to a current price of HK$2.35 — trading 681.7% above its estimated fair value. The current ROIC % is -6.40%. Majestic Dragon AeroTech Holdings' overall GF Score™ is 39/100 with 6 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 Majestic Dragon AeroTech Holdings (HKSE:00918), the current ROIC % is -6.40% as of Mar. 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 Majestic Dragon AeroTech Holdings (HKSE:00918) Overvalued in 2026?
Based on GuruFocus' analysis, Majestic Dragon AeroTech Holdings stock appears to be overvalued.
The current stock price of HK$2.35 is trading 681.7% above its estimated GF Value™ of HK$0.30.
GuruFocus considers Majestic Dragon AeroTech Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:00918:
ROIC %: -6.40%
GF Value™: HK$0.30 vs. price of HK$2.35 (681.7% above fair value)
No single metric tells the full story. See the HKSE:00918 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Majestic Dragon AeroTech Holdings Ltd along with its subsidiaries, is principally engaged in the wholesale of consumer products including timepieces and accessories, garment and sportswear products, property investment, and provision of marketing services. Its segment includes Wholesale business, Property investment, and Unmanned aerial vehicles business. Maximum revenue is generated from the Wholesale Business. Geographically, the company derives key revenue from Mainland China followed by the Middle East, Hong Kong, Africa and Taiwan.
39GF Score
Get the complete analysis for HKSE:00918
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:00918 has been successfully added to your 
