Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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 Kepei Education Group's annualized return on invested capital (ROIC %) for the quarter that ended in Feb. 2026 was 9.31%.
As of today (2026-08-24), China Kepei Education Group's WACC % is 5.88%. China Kepei Education Group's ROIC % is 8.41% (calculated using TTM income statement data).
China Kepei Education Group 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.
China Kepei Education Group (HKSE:01890) 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 Kepei Education Group's WACC % is 5.88%. China Kepei Education Group's ROIC % is 8.41% (calculated using TTM income statement data).
China Kepei Education Group 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.
China Kepei Education Group ROIC % Related Terms
China Kepei Education Group 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 Education & Training Services subindustry, China Kepei Education Group'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 Kepei Education Group ROIC % vs Education Industry
For the Education industry and Consumer Defensive sector, China Kepei Education Group's ROIC % distribution charts can be found below:
* The bar in red indicates where China Kepei Education Group's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Feb. 2026) 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 Kepei Education Group (HKSE:01890) has a ROIC % of 9.31% as of Feb. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on China Kepei Education Group and its competitors.
Is China Kepei Education Group's ROIC % too high?
China Kepei Education Group's current ROIC % is 9.31%. The Education industry median ROIC % is 5.66. China Kepei Education Group's value of 9.31% is 64.5% above this industry median. Overall, China Kepei Education Group has a GF Score™ of 87/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Kepei Education Group's ROIC % compare to EDU and TAL?
China Kepei Education Group's ROIC % of 9.31% can be compared against companies in the Education industry. The industry median ROIC % is 5.66. China Kepei Education Group's value of 9.31% is 64.5% 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 an Education company?
The median ROIC % among Education companies is 5.66, based on 261 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 Kepei Education Group's current ROIC % of 9.31% is 64.5% 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 China Kepei Education Group and its competitors. For the Education industry, the median ROIC % is 5.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Kepei Education Group's current ROIC % is 9.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Kepei Education Group stock overvalued right now?
Based on GuruFocus' analysis, China Kepei Education Group (HKSE:01890) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.89, compared to a current price of HK$0.90 — trading 52.4% below its estimated fair value. The current ROIC % is 9.31% and 64.5% above the Education industry median of 5.66. China Kepei Education Group's overall GF Score™ is 87/100 with 5 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 Kepei Education Group (HKSE:01890), the current ROIC % is 9.31% as of Feb. 2026. 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 Kepei Education Group (HKSE:01890) Overvalued in 2026?
Based on GuruFocus' analysis, China Kepei Education Group stock appears to be undervalued.
The current stock price of HK$0.90 is trading 52.4% below its estimated GF Value™ of HK$1.89.
GuruFocus considers China Kepei Education Group to be Possible Value Trap.
Key valuation signals for HKSE:01890:
ROIC %: 9.31%
GF Value™: HK$1.89 vs. price of HK$0.90 (52.4% below fair value)
Industry Position: 64.5% above the Education median
No single metric tells the full story. See the HKSE:01890 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Kepei Education Group Ltd is a provider of private vocational education services in China focusing on profession-oriented and vocational education. It earns revenues from tuition fees, higher education program, Secondary vocational education, Boarding fees and other educational services. The company-operated schools include Guangdong Polytechnic College, an undergraduate-level higher education institution; and Zhaoqing Science and Technology Secondary Vocational School both located in Zhaoqing, Guangdong Province. The Company operates and Generates revenue from China.
87GF Score
Get the complete analysis for HKSE:01890
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:01890 has been successfully added to your 
