Beijing Enterprises Urban Resources Group (HKSE:03718) ROIC %: 7.56% (As of Dec. 2025)

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HKSE:03718 Beijing Enterprises Urban Resources Group Ltd HKSE:03718
66 GF Score
Price HK$0.41
GF Value HK$0.65
Valuation Possible Value Trap
! 4 Warning Signs
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What is Beijing Enterprises Urban Resources Group ROIC %?

Beijing Enterprises Urban Resources Group HKSE:03718 66 ROIC % is 7.56% as of Dec. 2025. GuruFocus rates HKSE:03718 with a GF Score™ of 66/100 and a GF Value™ of HK$0.65 (Possible Value Trap). The stock has 4 warning signs investors should review.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Beijing Enterprises Urban Resources Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 7.56%.

As of today (2026-09-01), Beijing Enterprises Urban Resources Group's WACC % is 2.73%. Beijing Enterprises Urban Resources Group's ROIC % is 7.57% (calculated using TTM income statement data). Beijing Enterprises Urban Resources Group 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.


Beijing Enterprises Urban Resources Group  (HKSE:03718) 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, Beijing Enterprises Urban Resources Group's WACC % is 2.73%. Beijing Enterprises Urban Resources Group's ROIC % is 7.57% (calculated using TTM income statement data). Beijing Enterprises Urban Resources Group 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.


Beijing Enterprises Urban Resources Group ROIC % Related Terms


Beijing Enterprises Urban Resources Group ROIC % Historical Data

* Premium members only.

The historical data trend for Beijing Enterprises Urban Resources Group's ROIC % can be seen below:

* 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.

Beijing Enterprises Urban Resources Group ROIC % Chart

Beijing Enterprises Urban Resources Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.95 7.22 7.86 4.27 7.65

Beijing Enterprises Urban Resources Group Semi-Annual Data
Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.69 6.99 9.55 6.58 7.56

HKSE:03718 vs WM, RSG, WCN: ROIC % Comparison

For the Waste Management subindustry, Beijing Enterprises Urban Resources Group'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.


Beijing Enterprises Urban Resources Group ROIC % vs Waste Management Industry

For the Waste Management industry and Industrials sector, Beijing Enterprises Urban Resources Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Beijing Enterprises Urban Resources Group's ROIC % falls into.


HKSE:03718
66GF Score
Beijing Enterprises Urban Resources Group Ltd HKSE:03718
ROIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Beijing Enterprises Urban Resources Group ROIC % Calculation

Beijing Enterprises Urban Resources Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2025 is calculated as:

ROIC % (A: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2024 ) + Invested Capital (A: Dec. 2025 ))/ count )
=751.008 * ( 1 - 36.81% )/( (6304.762 + 6109.772)/ 2 )
=474.5619552/6207.267
=7.65 %

where

Invested Capital(A: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=9161.306 - 1853.284 - ( 1003.26 - max(0, 2863.787 - 5377.836+1003.26))
=6304.762

Invested Capital(A: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=9429.798 - 1861.662 - ( 1458.364 - max(0, 3096.245 - 6063.578+1458.364))
=6109.772

Beijing Enterprises Urban Resources Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2025 is calculated as:

ROIC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=693.72 * ( 1 - 32.35% )/( (6303.614 + 6109.772)/ 2 )
=469.30158/6206.693
=7.56 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=9045.455 - 1586.634 - ( 1155.207 - max(0, 2145.941 - 5611.748+1155.207))
=6303.614

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=9429.798 - 1861.662 - ( 1458.364 - max(0, 3096.245 - 6063.578+1458.364))
=6109.772

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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of 7.56% mean?
Beijing Enterprises Urban Resources Group (HKSE:03718) has a ROIC % of 7.56% 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 Beijing Enterprises Urban Resources Group and its competitors.
Is Beijing Enterprises Urban Resources Group's ROIC % too high?
Beijing Enterprises Urban Resources Group's current ROIC % is 7.56%. The Waste Management industry median ROIC % is 4.12. Beijing Enterprises Urban Resources Group's value of 7.56% is 83.7% above this industry median. Overall, Beijing Enterprises Urban Resources Group has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Beijing Enterprises Urban Resources Group's ROIC % compare to WM and RSG?
Beijing Enterprises Urban Resources Group's ROIC % of 7.56% can be compared against companies in the Waste Management industry. The industry median ROIC % is 4.12. Beijing Enterprises Urban Resources Group's value of 7.56% is 83.7% 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 Waste Management company?
The median ROIC % among Waste Management companies is 4.12, based on 244 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. Beijing Enterprises Urban Resources Group's current ROIC % of 7.56% is 83.7% 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 Beijing Enterprises Urban Resources Group and its competitors. For the Waste Management industry, the median ROIC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beijing Enterprises Urban Resources Group's current ROIC % is 7.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beijing Enterprises Urban Resources Group stock overvalued right now?
Based on GuruFocus' analysis, Beijing Enterprises Urban Resources Group (HKSE:03718) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.65, compared to a current price of HK$0.41 — trading 37.7% below its estimated fair value. The current ROIC % is 7.56% and 83.7% above the Waste Management industry median of 4.12. Beijing Enterprises Urban Resources Group's overall GF Score™ is 66/100 with 4 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 Beijing Enterprises Urban Resources Group (HKSE:03718), the current ROIC % is 7.56% 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 Beijing Enterprises Urban Resources Group (HKSE:03718) Overvalued in 2026?

Based on GuruFocus' analysis, Beijing Enterprises Urban Resources Group stock appears to be undervalued. The current stock price of HK$0.41 is trading 37.7% below its estimated GF Value™ of HK$0.65. GuruFocus considers Beijing Enterprises Urban Resources Group to be Possible Value Trap.

Key valuation signals for HKSE:03718:

  • ROIC %: 7.56%
  • GF Value™: HK$0.65 vs. price of HK$0.41 (37.7% below fair value)
  • GF Score™: 66/100 with 4 warning signs
  • Industry Position: 83.7% above the Waste Management median

No single metric tells the full story. See the HKSE:03718 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Beijing Enterprises Urban Resources Group Business Description

Address 18 Harbour Road, 66th Floor, Central Plaza, Wanchai, Hong Kong, HKG
Beijing Enterprises Urban Resources Group Ltd is an integrated waste management solution provider in China. The company provides environmental hygiene services and hazardous waste treatment services. The urban services segment provides urban environmental governance services and construction services. The hazardous waste treatment segment provides hazardous waste treatment services. The other segment comprises the waste electrical and electronic equipment treatment services and the sale of dismantled products. All of the groups revenue from external customers was derived from the operations in the PRC.
66GF Score

Get the complete analysis for HKSE:03718

ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.41
Price
HK$0.65
GF Value