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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 %. Zhonggan Communication (Group) Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 0.00%.
Zhonggan Communication (Group) Holdings (HKSE:02545) 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, Zhonggan Communication (Group) Holdings's WACC % is 6.37%. Zhonggan Communication (Group) Holdings's ROIC % is 5.06% (calculated using TTM income statement data).
Zhonggan Communication (Group) 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.
Zhonggan Communication (Group) Holdings ROIC % Related Terms
Zhonggan Communication (Group) 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.
Zhonggan Communication (Group) Holdings ROIC % Chart
Zhonggan Communication (Group) Holdings Annual Data
Trend
Dec21
Dec22
Dec23
Dec24
Dec25
ROIC %
11.28
11.37
17.21
4.02
5.32
Zhonggan Communication (Group) Holdings Semi-Annual Data
For the Telecom Services subindustry, Zhonggan Communication (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.
Zhonggan Communication (Group) Holdings ROIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Zhonggan Communication (Group) Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Zhonggan Communication (Group) 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.
Zhonggan Communication (Group) Holdings (HKSE:02545) has a ROIC % of 0.00% 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 Zhonggan Communication (Group) Holdings and its competitors.
Is Zhonggan Communication (Group) Holdings' ROIC % too high?
Zhonggan Communication (Group) Holdings' current ROIC % is 0.00%. Overall, Zhonggan Communication (Group) Holdings has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Zhonggan Communication (Group) Holdings' ROIC % compare to VZ and TMUS?
Zhonggan Communication (Group) Holdings' ROIC % of 0.00% can be compared against companies in the Telecommunication Services industry. The industry median ROIC % is 4.94. 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 Telecommunication Services company?
The median ROIC % among Telecommunication Services companies is 4.94, based on 362 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 Zhonggan Communication (Group) Holdings and its competitors. For the Telecommunication Services industry, the median ROIC % is 4.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhonggan Communication (Group) Holdings's current ROIC % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhonggan Communication (Group) Holdings stock overvalued right now?
Zhonggan Communication (Group) Holdings (HKSE:02545) has a current ROIC % of 0.00%. The current ROIC % is 0.00%. Zhonggan Communication (Group) Holdings' overall GF Score™ is 12/100 with 9 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 Zhonggan Communication (Group) Holdings (HKSE:02545), the current ROIC % is 0.00% 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.
Zhonggan Communication (Group) Holdings Ltd is an integrated service provider and software developer in China. It focuses on the provision of Telecommunications Infrastructure Services and Digitalisation Solution Services. Telecommunications Infrastructure Services comprises infrastructure Construction Services and Infrastructure Maintenance Services. Digitalisation Solution Services comprise Integrated Solution Services, System Maintenance Services, and Software Solution Services. Key revenue is generated from Telecommunications Infrastructure Services.
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