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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 %. Grace Life tech Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -0.69%.
As of today (2026-08-04), Grace Life tech Holdings's WACC % is 12.23%. Grace Life tech Holdings's ROIC % is -0.46% (calculated using TTM income statement data).
Grace Life tech Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Grace Life tech Holdings (HKSE:02112) 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, Grace Life tech Holdings's WACC % is 12.23%. Grace Life tech Holdings's ROIC % is -0.46% (calculated using TTM income statement data).
Grace Life tech 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 Steel subindustry, Grace Life tech 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.
Grace Life tech Holdings ROIC % vs Steel Industry
For the Steel industry and Basic Materials sector, Grace Life tech Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Grace Life tech 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.
Grace Life tech Holdings (HKSE:02112) has a ROIC % of -0.69% 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 Grace Life tech Holdings and its competitors.
Is Grace Life tech Holdings' ROIC % too high?
Grace Life tech Holdings' current ROIC % is -0.69%.
How does Grace Life tech Holdings' ROIC % compare to NUE and STLD?
Grace Life tech Holdings' ROIC % of -0.69% can be compared against companies in the Steel industry. The industry median ROIC % is 2.63. 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 Steel company?
The median ROIC % among Steel companies is 2.63, based on 622 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. 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 Grace Life tech Holdings and its competitors. For the Steel industry, the median ROIC % is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grace Life tech Holdings's current ROIC % is -0.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grace Life tech Holdings stock overvalued right now?
Based on GuruFocus' analysis, Grace Life tech Holdings (HKSE:02112) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.09, compared to a current price of HK$0.04 — trading 57.8% below its estimated fair value. The current ROIC % is -0.69%. 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 Grace Life tech Holdings (HKSE:02112), the current ROIC % is -0.69% 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.
Grace Life tech Holdings Ltd is engaged in iron ore exploration, mining, crushing, and beneficiation as well as the sale of iron ore products in the form of iron ore concentrates and iron ore fines. The company's segments are the Iron ore mining and processing operation segment, Health product trade segment, Commercial trade segments, and others. It generates the majority of its revenue from the Health product trade segment which includes the trading of health products. It has geographical markets in the PRC, Hong Kong, Malaysia, and others.
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