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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 %. Lung Fung Group Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 18.56%.
As of today (2026-08-27), Lung Fung Group Holdings's WACC % is 8.19%. Lung Fung Group Holdings's ROIC % is 18.56% (calculated using TTM income statement data).
Lung Fung Group Holdings 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.
Lung Fung Group Holdings (HKSE:02290) 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, Lung Fung Group Holdings's WACC % is 8.19%. Lung Fung Group Holdings's ROIC % is 18.56% (calculated using TTM income statement data).
Lung Fung Group Holdings 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.
Lung Fung Group Holdings ROIC % Chart
Lung Fung Group Holdings Annual Data
Trend
Mar23
Mar24
Mar25
Mar26
ROIC %
0.69
10.49
12.61
18.56
Lung Fung Group Holdings Semi-Annual Data
Mar23
Mar24
Mar25
Mar26
ROIC %
0.69
10.49
12.61
18.56
HKSE:02290 vs DDS: ROIC % Comparison
For the Department Stores subindustry, Lung Fung Group 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.
Lung Fung Group Holdings ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lung Fung Group Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Lung Fung Group Holdings's ROIC % falls into.
Note:
The Operating Income data used here is one times the annual (Mar. 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.
Lung Fung Group Holdings (HKSE:02290) has a ROIC % of 18.56% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Lung Fung Group Holdings and its competitors.
Is Lung Fung Group Holdings' ROIC % too high?
Lung Fung Group Holdings' current ROIC % is 18.56%. The Retail - Cyclical industry median ROIC % is 4.39. Lung Fung Group Holdings' value of 18.56% is 322.8% above this industry median. Overall, Lung Fung Group Holdings has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Lung Fung Group Holdings' ROIC % compare to DDS?
Lung Fung Group Holdings' ROIC % of 18.56% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.39. Lung Fung Group Holdings' value of 18.56% is 322.8% 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 Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.39, based on 1,117 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. Lung Fung Group Holdings's current ROIC % of 18.56% is 322.8% 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 Lung Fung Group Holdings and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lung Fung Group Holdings's current ROIC % is 18.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lung Fung Group Holdings stock overvalued right now?
Lung Fung Group Holdings (HKSE:02290) has a current ROIC % of 18.56%. The current ROIC % is 18.56% and 322.8% above the Retail - Cyclical industry median of 4.39. Lung Fung Group Holdings' overall GF Score™ is 17/100 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 Lung Fung Group Holdings (HKSE:02290), the current ROIC % is 18.56% as of Mar. 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.
Lung Fung Group Holdings Ltd is an investment holding company. Along with its subsidiaries, the company operates as a Hong Kong-based chain retail store of beauty, health and pharmaceutical products under the 'Lung Fung' brand. It principally engaged in the sales of a wide variety of beauty products, health products, pharmaceutical products and other consumer goods such as household and daily essentials and food products. The majority of revenue is derived from the sales of Beauty products through retail stores located in Hong Kong.
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