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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 %. China Metal Resources Utilization's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2025 was -2.53%.
As of today (2026-07-24), China Metal Resources Utilization's WACC % is 20.24%. China Metal Resources Utilization's ROIC % is -4.74% (calculated using TTM income statement data).
China Metal Resources Utilization earns returns that do not match up to its cost of capital. It will destroy value as it grows.
China Metal Resources Utilization (HKSE:01636) 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, China Metal Resources Utilization's WACC % is 20.24%. China Metal Resources Utilization's ROIC % is -4.74% (calculated using TTM income statement data).
China Metal Resources Utilization 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.
China Metal Resources Utilization ROIC % Related Terms
China Metal Resources Utilization 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 Copper subindustry, China Metal Resources Utilization'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.
China Metal Resources Utilization ROIC % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, China Metal Resources Utilization's ROIC % distribution charts can be found below:
* The bar in red indicates where China Metal Resources Utilization's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Jun. 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.
China Metal Resources Utilization (HKSE:01636) has a ROIC % of -2.53% as of Jun. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on China Metal Resources Utilization and its competitors.
Is China Metal Resources Utilization's ROIC % too high?
China Metal Resources Utilization's current ROIC % is -2.53%. Overall, China Metal Resources Utilization has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does China Metal Resources Utilization's ROIC % compare to SCCO and FCX?
China Metal Resources Utilization's ROIC % of -2.53% can be compared against companies in the Metals & Mining industry. 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 Metals & Mining company?
A good ROIC % depends on the Metals & Mining industry context. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 China Metal Resources Utilization and its competitors. China Metal Resources Utilization's current ROIC % is -2.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Metal Resources Utilization stock overvalued right now?
China Metal Resources Utilization (HKSE:01636) has a current ROIC % of -2.53%. The stock's GF Value™ is HK$0.11, compared to a current price of HK$0.31 — trading 181.8% above its estimated fair value. The current ROIC % is -2.53%. China Metal Resources Utilization's overall GF Score™ is 21/100 with 6 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 China Metal Resources Utilization (HKSE:01636), the current ROIC % is -2.53% as of Jun. 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 China Metal Resources Utilization (HKSE:01636) Overvalued in 2026?
Based on GuruFocus' analysis, China Metal Resources Utilization stock appears to be overvalued.
The current stock price of HK$0.31 is trading 181.8% above its estimated GF Value™ of HK$0.11.
Key valuation signals for HKSE:01636:
ROIC %: -2.53%
GF Value™: HK$0.11 vs. price of HK$0.31 (181.8% above fair value)
No single metric tells the full story. See the HKSE:01636 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Metal Resources Utilization Business Description
China Metal Resources Utilization Ltd is a manufacturer of recycled copper products, also known as copper semis, in Southwest China. The company's majority revenue-earning segment is recycled copper products, in which it processes recycled scrap and electrolytic copper to manufacture a various product, including copper wire rods, copper wires, copper plates, and copper granules. The power transmission and distribution cables segment include manufacturing and sales of power transmission and distribution cables, and the Communication cables segment engages in manufacturing and sales of communication cables.
21GF Score
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