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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 %. Chinney Kin Wing Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 11.80%.
As of today (2026-08-06), Chinney Kin Wing Holdings's WACC % is 5.92%. Chinney Kin Wing Holdings's ROIC % is 9.68% (calculated using TTM income statement data).
Chinney Kin Wing Holdings 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.
Chinney Kin Wing Holdings (HKSE:01556) 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, Chinney Kin Wing Holdings's WACC % is 5.92%. Chinney Kin Wing Holdings's ROIC % is 9.68% (calculated using TTM income statement data).
Chinney Kin Wing Holdings 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 Engineering & Construction subindustry, Chinney Kin Wing 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.
Chinney Kin Wing Holdings ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Chinney Kin Wing Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Chinney Kin Wing 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.
Chinney Kin Wing Holdings (HKSE:01556) has a ROIC % of 11.80% 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 Chinney Kin Wing Holdings and its competitors.
Is Chinney Kin Wing Holdings' ROIC % too high?
Chinney Kin Wing Holdings' current ROIC % is 11.80%. The Construction industry median ROIC % is 4.70. Chinney Kin Wing Holdings' value of 11.80% is 151.1% above this industry median. Overall, Chinney Kin Wing Holdings has a GF Score™ of 54/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chinney Kin Wing Holdings' ROIC % compare to PWR and FIX?
Chinney Kin Wing Holdings' ROIC % of 11.80% can be compared against companies in the Construction industry. The industry median ROIC % is 4.70. Chinney Kin Wing Holdings' value of 11.80% is 151.1% 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 Construction company?
The median ROIC % among Construction companies is 4.70, based on 1,761 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. Chinney Kin Wing Holdings's current ROIC % of 11.80% is 151.1% 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 Chinney Kin Wing Holdings and its competitors. For the Construction industry, the median ROIC % is 4.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chinney Kin Wing Holdings's current ROIC % is 11.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chinney Kin Wing Holdings stock overvalued right now?
Based on GuruFocus' analysis, Chinney Kin Wing Holdings (HKSE:01556) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.29, compared to a current price of HK$0.27 — trading 6.9% below its estimated fair value. The current ROIC % is 11.80% and 151.1% above the Construction industry median of 4.70. Chinney Kin Wing Holdings' overall GF Score™ is 54/100 with 2 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 Chinney Kin Wing Holdings (HKSE:01556), the current ROIC % is 11.80% 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.
Is Chinney Kin Wing Holdings (HKSE:01556) Overvalued in 2026?
Based on GuruFocus' analysis, Chinney Kin Wing Holdings stock appears to be undervalued.
The current stock price of HK$0.27 is trading 6.9% below its estimated GF Value™ of HK$0.29.
GuruFocus considers Chinney Kin Wing Holdings to be Fairly Valued.
Key valuation signals for HKSE:01556:
ROIC %: 11.80%
GF Value™: HK$0.29 vs. price of HK$0.27 (6.9% below fair value)
Industry Position: 151.1% above the Construction median
No single metric tells the full story. See the HKSE:01556 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chinney Kin Wing Holdings Ltd is an investment holding company. Its subsidiaries are principally engaged in foundation construction, and drilling and site investigation projects for both public and private sectors in Hong Kong. The company's two reportable operating segments are as follows: i) Foundation construction and ancillary services, and ii) Drilling and site investigation. It generates maximum revenue from the Foundation construction and ancillary services segment. Geographically, it derives a majority of its revenue from Hong Kong.
54GF Score
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