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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 %. Star Sports Medicine Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 131.50%.
As of today (2026-08-23), Star Sports Medicine Co's WACC % is 10.70%. Star Sports Medicine Co's ROIC % is 26.39% (calculated using TTM income statement data).
Star Sports Medicine 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.
Star Sports Medicine Co (HKSE:01609) 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, Star Sports Medicine Co's WACC % is 10.70%. Star Sports Medicine Co's ROIC % is 26.39% (calculated using TTM income statement data).
Star Sports Medicine 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 Medical Devices subindustry, Star Sports Medicine 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.
Star Sports Medicine Co ROIC % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Star Sports Medicine Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Star Sports Medicine Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (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.
Star Sports Medicine Co (HKSE:01609) has a ROIC % of 131.50% 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 Star Sports Medicine Co and its competitors.
Is Star Sports Medicine Co's ROIC % too high?
Star Sports Medicine Co's current ROIC % is 131.50%. The Medical Devices & Instruments industry median ROIC % is 1.63. Star Sports Medicine Co's value of 131.50% is 7967.5% above this industry median. Overall, Star Sports Medicine Co has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Star Sports Medicine Co's ROIC % compare to ABT and SYK?
Star Sports Medicine Co's ROIC % of 131.50% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROIC % is 1.63. Star Sports Medicine Co's value of 131.50% is 7967.5% 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 Medical Devices & Instruments company?
The median ROIC % among Medical Devices & Instruments companies is 1.63, based on 843 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. Star Sports Medicine Co's current ROIC % of 131.50% is 7967.5% 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 Star Sports Medicine Co and its competitors. For the Medical Devices & Instruments industry, the median ROIC % is 1.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Star Sports Medicine Co's current ROIC % is 131.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Star Sports Medicine Co stock overvalued right now?
Star Sports Medicine Co (HKSE:01609) has a current ROIC % of 131.50%. The current ROIC % is 131.50% and 7967.5% above the Medical Devices & Instruments industry median of 1.63. Star Sports Medicine Co's overall GF Score™ is 20/100 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 Star Sports Medicine Co (HKSE:01609), the current ROIC % is 131.50% 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.
Star Sports Medicine Co Ltd is a China-based medical device company specializing in clinical sports medicine solutions. It is principally engaged in the research and development and sales of medical devices and equipment in the field of sports medicine. The product line covers medical implants, surgical equipment and associated medical consumables. The company has only one reportable operating segment, which is the sale of sports medicine products. It derives revenue from the sales of (i) medical implants and (ii) surgical equipment and associated medical consumables, with the majority of revenue generated from the sales of Medical implants. Geographically, the maximum revenue is derived from the Chinese mainland.
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