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 %. Ruichang International Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 19.16%.
As of today (2026-08-12), Ruichang International Holdings's WACC % is 8.67%. Ruichang International Holdings's ROIC % is 2.91% (calculated using TTM income statement data).
Ruichang International Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Ruichang International Holdings (HKSE:01334) 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, Ruichang International Holdings's WACC % is 8.67%. Ruichang International Holdings's ROIC % is 2.91% (calculated using TTM income statement data).
Ruichang International 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.
Ruichang International Holdings ROIC % Related Terms
Ruichang International 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 Specialty Industrial Machinery subindustry, Ruichang International 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.
Ruichang International Holdings ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ruichang International Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Ruichang International Holdings'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.
Ruichang International Holdings (HKSE:01334) has a ROIC % of 19.16% 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 Ruichang International Holdings and its competitors.
Is Ruichang International Holdings' ROIC % too high?
Ruichang International Holdings' current ROIC % is 19.16%. The Industrial Products industry median ROIC % is 5.23. Ruichang International Holdings' value of 19.16% is 266.3% above this industry median. Overall, Ruichang International Holdings has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Ruichang International Holdings' ROIC % compare to GEV and ETN?
Ruichang International Holdings' ROIC % of 19.16% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.23. Ruichang International Holdings' value of 19.16% is 266.3% 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 5.23, based on 3,029 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. Ruichang International Holdings's current ROIC % of 19.16% is 266.3% 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 Ruichang International Holdings and its competitors. For the Industrial Products industry, the median ROIC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ruichang International Holdings's current ROIC % is 19.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ruichang International Holdings stock overvalued right now?
Ruichang International Holdings (HKSE:01334) has a current ROIC % of 19.16%. The current ROIC % is 19.16% and 266.3% above the Industrial Products industry median of 5.23. Ruichang International Holdings' overall GF Score™ is 15/100 with 5 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 Ruichang International Holdings (HKSE:01334), the current ROIC % is 19.16% 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.
Ruichang International Holdings Ltd is a petroleum refinery and petrochemical equipment manufacturer. Its products are divided into four product categories, namely SRU and VOCs incineration equipment, catalytic cracking equipment, process burners, and heat exchangers. The group also provides installation services for the equipment manufactured and ancillary facilities, such as electrical erection work and mechanical erection work.
15GF Score
Get the complete analysis for HKSE:01334
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:01334 has been successfully added to your 
