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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 %. Mao Geping Cosmetics Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 78.62%.
As of today (2026-07-24), Mao Geping Cosmetics Co's WACC % is 10.65%. Mao Geping Cosmetics Co's ROIC % is 84.86% (calculated using TTM income statement data).
Mao Geping Cosmetics Co 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.
Mao Geping Cosmetics Co (HKSE:01318) 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, Mao Geping Cosmetics Co's WACC % is 10.65%. Mao Geping Cosmetics Co's ROIC % is 84.86% (calculated using TTM income statement data).
Mao Geping Cosmetics Co 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.
* 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 Household & Personal Products subindustry, Mao Geping Cosmetics Co'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.
Mao Geping Cosmetics Co ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Mao Geping Cosmetics Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Mao Geping Cosmetics Co'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.
Mao Geping Cosmetics Co (HKSE:01318) has a ROIC % of 78.62% 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 Mao Geping Cosmetics Co and its competitors.
Is Mao Geping Cosmetics Co's ROIC % too high?
Mao Geping Cosmetics Co's current ROIC % is 78.62%. The Consumer Packaged Goods industry median ROIC % is 5.22. Mao Geping Cosmetics Co's value of 78.62% is 1406.1% above this industry median. Overall, Mao Geping Cosmetics Co has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Mao Geping Cosmetics Co's ROIC % compare to PG and CL?
Mao Geping Cosmetics Co's ROIC % of 78.62% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.22. Mao Geping Cosmetics Co's value of 78.62% is 1406.1% 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 Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.22, based on 1,948 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. Mao Geping Cosmetics Co's current ROIC % of 78.62% is 1406.1% 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 Mao Geping Cosmetics Co and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mao Geping Cosmetics Co's current ROIC % is 78.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mao Geping Cosmetics Co stock overvalued right now?
Mao Geping Cosmetics Co (HKSE:01318) has a current ROIC % of 78.62%. The current ROIC % is 78.62% and 1406.1% above the Consumer Packaged Goods industry median of 5.22. Mao Geping Cosmetics Co's overall GF Score™ is 23/100 with 1 warning sign 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 Mao Geping Cosmetics Co (HKSE:01318), the current ROIC % is 78.62% 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.
Founded in 2000 and headquartered in Hangzhou, Mao Geping Beauty is one of China's leading premium beauty companies with a portfolio of color cosmetics, skincare, and fragrance products. It operates under the Mao Geping and Love Keeps brands. As of 2025, MGP ranked second in China's color cosmetics market with a 4.7% share, and 19th in premium skincare with a 1.5% share. Founder Mao Geping, his wife Wang Liqun, and sisters Mao Niping and Mao Huiping retain over 60% control. MGP sells primarily in China through a network of 445 brand counters across 131 cities.
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