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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 Parenting Network Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 19.53%.
As of today (2026-08-04), China Parenting Network Holdings's WACC % is 19.30%. China Parenting Network Holdings's ROIC % is -21.41% (calculated using TTM income statement data).
China Parenting Network Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
China Parenting Network Holdings (HKSE:01736) 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 Parenting Network Holdings's WACC % is 19.30%. China Parenting Network Holdings's ROIC % is -21.41% (calculated using TTM income statement data).
China Parenting Network 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.
China Parenting Network Holdings ROIC % Related Terms
China Parenting Network 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 Advertising Agencies subindustry, China Parenting Network 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.
China Parenting Network Holdings ROIC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, China Parenting Network Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where China Parenting Network 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.
China Parenting Network Holdings (HKSE:01736) has a ROIC % of 19.53% 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 China Parenting Network Holdings and its competitors.
Is China Parenting Network Holdings' ROIC % too high?
China Parenting Network Holdings' current ROIC % is 19.53%. The Media - Diversified industry median ROIC % is 1.48. China Parenting Network Holdings' value of 19.53% is 1224.1% above this industry median. Overall, China Parenting Network Holdings has a GF Score™ of 25/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Parenting Network Holdings' ROIC % compare to APP and OMC?
China Parenting Network Holdings' ROIC % of 19.53% can be compared against companies in the Media - Diversified industry. The industry median ROIC % is 1.48. China Parenting Network Holdings' value of 19.53% is 1224.1% 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 Media - Diversified company?
The median ROIC % among Media - Diversified companies is 1.48, based on 1,006 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. China Parenting Network Holdings's current ROIC % of 19.53% is 1224.1% 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 China Parenting Network Holdings and its competitors. For the Media - Diversified industry, the median ROIC % is 1.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Parenting Network Holdings's current ROIC % is 19.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Parenting Network Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Parenting Network Holdings (HKSE:01736) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.42, compared to a current price of HK$0.42 — trading 1.2% below its estimated fair value. The current ROIC % is 19.53% and 1224.1% above the Media - Diversified industry median of 1.48. China Parenting Network Holdings' overall GF Score™ is 25/100 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 Parenting Network Holdings (HKSE:01736), the current ROIC % is 19.53% 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 China Parenting Network Holdings (HKSE:01736) Overvalued in 2026?
Based on GuruFocus' analysis, China Parenting Network Holdings stock appears to be undervalued.
The current stock price of HK$0.42 is trading 1.2% below its estimated GF Value™ of HK$0.42.
GuruFocus considers China Parenting Network Holdings to be Fairly Valued.
Key valuation signals for HKSE:01736:
ROIC %: 19.53%
GF Value™: HK$0.42 vs. price of HK$0.42 (1.2% below fair value)
Industry Position: 1224.1% above the Media - Diversified median
No single metric tells the full story. See the HKSE:01736 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Parenting Network Holdings Ltd is investment holding. The Company is principally engaged in the provision of marketing and promotional services through the Group's platform, including CI Web, mobile CI Web, Mobile Application Software (APPs) and IPTV APPs and sale of goods. The company has two segments Marketing and promotional services, including advertising services, market research services, and software development services; and Sale of goods, including baby care, personal care, and family care products. The company generates majority of revenue from Marketing and promotional services segment. The Group's operations are principally located in Hong Kong and the PRC. The company generates majority of revenue from PRC.
25GF Score
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