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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 %. Ronshine China Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -15.68%.
As of today (2026-07-23), Ronshine China Holdings's WACC % is 7.06%. Ronshine China Holdings's ROIC % is -8.21% (calculated using TTM income statement data).
Ronshine China Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Ronshine China Holdings (HKSE:03301) 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, Ronshine China Holdings's WACC % is 7.06%. Ronshine China Holdings's ROIC % is -8.21% (calculated using TTM income statement data).
Ronshine China 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.
Ronshine China Holdings ROIC % Competitor Comparison
For the Real Estate - Development subindustry, Ronshine China 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.
Ronshine China Holdings ROIC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Ronshine China Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Ronshine China 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.
Ronshine China Holdings (HKSE:03301) has a ROIC % of -15.68% 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 Ronshine China Holdings and its competitors.
Is Ronshine China Holdings' ROIC % too high?
Ronshine China Holdings' current ROIC % is -15.68%.
How does Ronshine China Holdings' ROIC % compare to competitors?
Ronshine China Holdings' ROIC % of -15.68% can be compared against companies in the Real Estate industry. The industry median ROIC % is 2.17. 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 Real Estate company?
The median ROIC % among Real Estate companies is 2.17, based on 1,754 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 Ronshine China Holdings and its competitors. For the Real Estate industry, the median ROIC % is 2.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ronshine China Holdings's current ROIC % is -15.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ronshine China Holdings stock overvalued right now?
Based on GuruFocus' analysis, Ronshine China Holdings (HKSE:03301) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.05, compared to a current price of HK$0.05 — trading 2% above its estimated fair value. The current ROIC % is -15.68%. 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 Ronshine China Holdings (HKSE:03301), the current ROIC % is -15.68% 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.
Ronshine China Holdings Ltd is an investment holding company that operates as a property developer in the PRC. It is mainly engaged in the development of mid-to high-end residential properties and commercial properties in cities in the Western Coast of the Straits, the Yangtze River Delta, and selected first and second-tier cities in the PRC.
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