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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 %. Changyou International Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 3.86%.
As of today (2026-07-21), Changyou International Group's WACC % is 10.04%. Changyou International Group's ROIC % is 4.74% (calculated using TTM income statement data).
Changyou International Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Changyou International Group (HKSE:01039) 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, Changyou International Group's WACC % is 10.04%. Changyou International Group's ROIC % is 4.74% (calculated using TTM income statement data).
Changyou International Group 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.
Changyou International Group ROIC % Related Terms
Changyou International 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.
For the Internet Retail subindustry, Changyou International 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.
Changyou International Group ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Changyou International Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Changyou International Group'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.
Changyou International Group (HKSE:01039) has a ROIC % of 3.86% 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 Changyou International Group and its competitors.
Is Changyou International Group's ROIC % too high?
Changyou International Group's current ROIC % is 3.86%. The Retail - Cyclical industry median ROIC % is 4.30. Changyou International Group's value of 3.86% is 10.2% below this industry median.
How does Changyou International Group's ROIC % compare to AMZN and BABA?
Changyou International Group's ROIC % of 3.86% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.30. Changyou International Group's value of 3.86% is 10.2% below 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 Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.30, based on 1,113 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. Changyou International Group's current ROIC % of 3.86% is 10.2% below 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 Changyou International Group and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Changyou International Group's current ROIC % is 3.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Changyou International Group stock overvalued right now?
Based on GuruFocus' analysis, Changyou International Group (HKSE:01039) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.10, compared to a current price of HK$0.05 — trading 50% below its estimated fair value. The current ROIC % is 3.86% and 10.2% below the Retail - Cyclical industry median of 4.30. 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 Changyou International Group (HKSE:01039), the current ROIC % is 3.86% 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.
Changyou International Group Ltd is engaged in the the sales of goods in the form of virtual assets and credits for consumption of merchandises, games, services and other commercial transactions through the development and operation of an electronic trading platform to promote and facilitate awards earned by customers of loyalty programmes of other companies to be exchanged in the People's Republic of China ( PRC) and other trading business. The company mainly operates in the Digital Point segment that operates an electronic trading platform to promote and facilitate awards earned by customers of loyalty programmes of other companies to be exchanged globally in the form of virtual assets and credits for consumption of merchandises, games, services and other commercial transactions.
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