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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 %. Herbs Generation Group Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -32.73%.
As of today (2026-08-13), Herbs Generation Group Holdings's WACC % is 9.35%. Herbs Generation Group Holdings's ROIC % is -23.99% (calculated using TTM income statement data).
Herbs Generation Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Herbs Generation Group Holdings (HKSE:02593) 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, Herbs Generation Group Holdings's WACC % is 9.35%. Herbs Generation Group Holdings's ROIC % is -23.99% (calculated using TTM income statement data).
Herbs Generation 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.
Herbs Generation Group Holdings ROIC % Related Terms
Herbs Generation 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.
For the Packaged Foods subindustry, Herbs Generation 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.
Herbs Generation Group Holdings ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Herbs Generation Group Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Herbs Generation 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.
Herbs Generation Group Holdings (HKSE:02593) has a ROIC % of -32.73% 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 Herbs Generation Group Holdings and its competitors.
Is Herbs Generation Group Holdings' ROIC % too high?
Herbs Generation Group Holdings' current ROIC % is -32.73%. Overall, Herbs Generation Group Holdings has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Herbs Generation Group Holdings' ROIC % compare to KHC and GIS?
Herbs Generation Group Holdings' ROIC % of -32.73% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.34. 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 Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.34, based on 1,943 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 Herbs Generation Group Holdings and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Herbs Generation Group Holdings's current ROIC % is -32.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Herbs Generation Group Holdings stock overvalued right now?
Herbs Generation Group Holdings (HKSE:02593) has a current ROIC % of -32.73%. The current ROIC % is -32.73%. Herbs Generation Group Holdings' overall GF Score™ is 19/100 with 2 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 Herbs Generation Group Holdings (HKSE:02593), the current ROIC % is -32.73% 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.
Herbs Generation Group Holdings Ltd is a provider of health supplements and cosmetics and skincare products in Hong Kong. It has focus on the development, sales and marketing of products under own brands through a multi-channel sales model. Its brand include Herbs, ZINO, Classic, Umeya, Energie, etc. The company products are categorized into (i) health supplements, mainly referring to orally consumed health products which generally take the forms of pills, tablets or liquids for oral intake. (ii) cosmetics and skincare products, which mainly include beauty and skincare beauty products for external use for maintenance and/or improvement of skin conditions. (iii) health supplements for pets, which mainly include orally consumed health products for pets.
19GF Score
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