Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Zhongke Group Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -19.25%.
As of today (2026-08-09), Zhongke Group Holdings's WACC % is 9.29%. Zhongke Group Holdings's ROIC % is -14.28% (calculated using TTM income statement data).
Zhongke Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Zhongke Group Holdings (HKSE:03321) 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, Zhongke Group Holdings's WACC % is 9.29%. Zhongke Group Holdings's ROIC % is -14.28% (calculated using TTM income statement data).
Zhongke 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.
* 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 Engineering & Construction subindustry, Zhongke 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.
Zhongke Group Holdings ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Zhongke Group Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Zhongke 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.
Zhongke Group Holdings (HKSE:03321) has a ROIC % of -19.25% 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 Zhongke Group Holdings and its competitors.
Is Zhongke Group Holdings' ROIC % too high?
Zhongke Group Holdings' current ROIC % is -19.25%. Overall, Zhongke Group Holdings has a GF Score™ of 35/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhongke Group Holdings' ROIC % compare to PWR and FIX?
Zhongke Group Holdings' ROIC % of -19.25% can be compared against companies in the Construction industry. The industry median ROIC % is 4.75. 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 Construction company?
The median ROIC % among Construction companies is 4.75, based on 1,763 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 Zhongke Group Holdings and its competitors. For the Construction industry, the median ROIC % is 4.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhongke Group Holdings's current ROIC % is -19.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongke Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Zhongke Group Holdings (HKSE:03321) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.82, compared to a current price of HK$1.08 — trading 31.1% above its estimated fair value. The current ROIC % is -19.25%. Zhongke Group Holdings' overall GF Score™ is 35/100 with 7 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 Zhongke Group Holdings (HKSE:03321), the current ROIC % is -19.25% 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.
Is Zhongke Group Holdings (HKSE:03321) Overvalued in 2026?
Based on GuruFocus' analysis, Zhongke Group Holdings stock appears to be overvalued.
The current stock price of HK$1.08 is trading 31.1% above its estimated GF Value™ of HK$0.82.
GuruFocus considers Zhongke Group Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:03321:
ROIC %: -19.25%
GF Value™: HK$0.82 vs. price of HK$1.08 (31.1% above fair value)
No single metric tells the full story. See the HKSE:03321 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhongke Group Holdings Ltd, formerly Wai Hung Group Holdings Ltd is an investment holding company that is engaged in undertaking projects as both main contractor and subcontractor. The company operates in two segments namely, fitting-out services and repair & maintenance services. The vast majority of its revenue comes from the fitting-out services segment that covers refitting works for existing buildings and extends to casinos, retail areas, hotels, restaurants, commercial properties, and residential properties. Geographically, the company derives maximum revenue from Macau.
35GF Score
Get the complete analysis for HKSE:03321
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:03321 has been successfully added to your 
