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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 %. STAR CM Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 3.12%.
As of today (2026-09-11), STAR CM Holdings's WACC % is 12.26%. STAR CM Holdings's ROIC % is 0.66% (calculated using TTM income statement data).
STAR CM Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, STAR CM Holdings's WACC % is 12.26%. STAR CM Holdings's ROIC % is 0.66% (calculated using TTM income statement data).
STAR CM 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.
STAR CM Holdings ROIC % Related Terms
STAR CM Holdings ROIC % Historical Data
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The historical data trend for STAR CM Holdings'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.
For the Entertainment subindustry, STAR CM 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.
STAR CM Holdings ROIC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, STAR CM Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where STAR CM 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.
STAR CM Holdings (HKSE:06698) has a ROIC % of 3.12% 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 STAR CM Holdings and its competitors.
Is STAR CM Holdings' ROIC % too high?
STAR CM Holdings' current ROIC % is 3.12%. The Media - Diversified industry median ROIC % is 1.64. STAR CM Holdings' value of 3.12% is 90.8% above this industry median. Overall, STAR CM Holdings has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does STAR CM Holdings' ROIC % compare to NFLX and DIS?
STAR CM Holdings' ROIC % of 3.12% can be compared against companies in the Media - Diversified industry. The industry median ROIC % is 1.64. STAR CM Holdings' value of 3.12% is 90.8% 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 Media - Diversified company?
The median ROIC % among Media - Diversified companies is 1.64, based on 1,002 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. STAR CM Holdings's current ROIC % of 3.12% is 90.8% 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 STAR CM Holdings and its competitors. For the Media - Diversified industry, the median ROIC % is 1.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. STAR CM Holdings's current ROIC % is 3.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is STAR CM Holdings stock overvalued right now?
Based on GuruFocus' analysis, STAR CM Holdings (HKSE:06698) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.81, compared to a current price of HK$0.81 — trading 55.2% below its estimated fair value. The current ROIC % is 3.12% and 90.8% above the Media - Diversified industry median of 1.64. STAR CM Holdings' overall GF Score™ is 70/100 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 STAR CM Holdings (HKSE:06698), the current ROIC % is 3.12% 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 STAR CM Holdings (HKSE:06698) Overvalued in 2026?
Based on GuruFocus' analysis, STAR CM Holdings stock appears to be undervalued.
The current stock price of HK$0.81 is trading 55.2% below its estimated GF Value™ of HK$1.81.
GuruFocus considers STAR CM Holdings to be Possible Value Trap.
Key valuation signals for HKSE:06698:
ROIC %: 3.12%
GF Value™: HK$1.81 vs. price of HK$0.81 (55.2% below fair value)
Industry Position: 90.8% above the Media - Diversified median
No single metric tells the full story. See the HKSE:06698 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
STAR CM Holdings Ltd is an investment holding company. The company's subsidiaries are principally involved in variety program intellectual property (IP) production, operation and licensing, music IP operation and licensing, drama series and film IP operation and licensing and other IP-related business. The company owns a diverse and wide range of popular variety show IPs, including music programs, dance programs, talent shows, talk shows, outdoor/cultural programs, and other variety shows. Geographically, the company derives the majority of revenue from Mainland China, followed by the USA, the United Kingdom, Japan, Hong Kong, Macau, and Other regions.
70GF Score
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