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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 %. Tian Lun Gas Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 5.98%.
As of today (2026-08-25), Tian Lun Gas Holdings's WACC % is 3.43%. Tian Lun Gas Holdings's ROIC % is 2.84% (calculated using TTM income statement data).
Tian Lun Gas Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Tian Lun Gas Holdings (HKSE:01600) 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, Tian Lun Gas Holdings's WACC % is 3.43%. Tian Lun Gas Holdings's ROIC % is 2.84% (calculated using TTM income statement data).
Tian Lun Gas 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.
* 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 Utilities - Regulated Gas subindustry, Tian Lun Gas 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.
Tian Lun Gas Holdings ROIC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Tian Lun Gas Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Tian Lun Gas 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.
Tian Lun Gas Holdings (HKSE:01600) has a ROIC % of 5.98% 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 Tian Lun Gas Holdings and its competitors.
Is Tian Lun Gas Holdings' ROIC % too high?
Tian Lun Gas Holdings' current ROIC % is 5.98%. The Utilities - Regulated industry median ROIC % is 4.28. Tian Lun Gas Holdings' value of 5.98% is 39.7% above this industry median. Overall, Tian Lun Gas Holdings has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tian Lun Gas Holdings' ROIC % compare to ATO and NI?
Tian Lun Gas Holdings' ROIC % of 5.98% can be compared against companies in the Utilities - Regulated industry. The industry median ROIC % is 4.28. Tian Lun Gas Holdings' value of 5.98% is 39.7% 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 Utilities - Regulated company?
The median ROIC % among Utilities - Regulated companies is 4.28, based on 500 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. Tian Lun Gas Holdings's current ROIC % of 5.98% is 39.7% 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 Tian Lun Gas Holdings and its competitors. For the Utilities - Regulated industry, the median ROIC % is 4.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tian Lun Gas Holdings's current ROIC % is 5.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tian Lun Gas Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tian Lun Gas Holdings (HKSE:01600) is currently considered Possible Value Trap. The stock's GF Value™ is HK$3.92, compared to a current price of HK$2.65 — trading 32.5% below its estimated fair value. The current ROIC % is 5.98% and 39.7% above the Utilities - Regulated industry median of 4.28. Tian Lun Gas Holdings' overall GF Score™ is 71/100 with 4 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 Tian Lun Gas Holdings (HKSE:01600), the current ROIC % is 5.98% 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 Tian Lun Gas Holdings (HKSE:01600) Overvalued in 2026?
Based on GuruFocus' analysis, Tian Lun Gas Holdings stock appears to be undervalued.
The current stock price of HK$2.65 is trading 32.5% below its estimated GF Value™ of HK$3.92.
GuruFocus considers Tian Lun Gas Holdings to be Possible Value Trap.
Key valuation signals for HKSE:01600:
ROIC %: 5.98%
GF Value™: HK$3.92 vs. price of HK$2.65 (32.5% below fair value)
Industry Position: 39.7% above the Utilities - Regulated median
No single metric tells the full story. See the HKSE:01600 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tian Lun Gas Holdings Ltd is a Chinese investment holding company whose subsidiaries are engaged in the investment, operation and management of gas pipeline connections, transportation, distribution and sales of gas, construction and operation of gas filling stations, and production and sales of LNG in the People's Republic of China. The segments of the company are the sale of natural gas in cylinders, sale of natural gas in bulk, engineering construction services, and other segments. The company derives the majority of its revenue from the sale of natural gas.
71GF Score
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