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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 %. Good Fellow Healthcare Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -131.69%.
As of today (2026-09-01), Good Fellow Healthcare Holdings's WACC % is 8.75%. Good Fellow Healthcare Holdings's ROIC % is -81.41% (calculated using TTM income statement data).
Good Fellow Healthcare Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Good Fellow Healthcare Holdings (HKSE:08143) 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, Good Fellow Healthcare Holdings's WACC % is 8.75%. Good Fellow Healthcare Holdings's ROIC % is -81.41% (calculated using TTM income statement data).
Good Fellow Healthcare 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.
Good Fellow Healthcare Holdings ROIC % Related Terms
Good Fellow Healthcare 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 Medical Care Facilities subindustry, Good Fellow Healthcare 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.
Good Fellow Healthcare Holdings ROIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Good Fellow Healthcare Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Good Fellow Healthcare Holdings's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Mar. 2026) 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.
Good Fellow Healthcare Holdings (HKSE:08143) has a ROIC % of -131.69% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Good Fellow Healthcare Holdings and its competitors.
Is Good Fellow Healthcare Holdings' ROIC % too high?
Good Fellow Healthcare Holdings' current ROIC % is -131.69%.
How does Good Fellow Healthcare Holdings' ROIC % compare to HCA and THC?
Good Fellow Healthcare Holdings' ROIC % of -131.69% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.24. 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 Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.24, based on 676 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 Good Fellow Healthcare Holdings and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Good Fellow Healthcare Holdings's current ROIC % is -131.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Good Fellow Healthcare Holdings stock overvalued right now?
Based on GuruFocus' analysis, Good Fellow Healthcare Holdings (HKSE:08143) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.05, compared to a current price of HK$0.06 — trading 20% above its estimated fair value. The current ROIC % is -131.69%. 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 Good Fellow Healthcare Holdings (HKSE:08143), the current ROIC % is -131.69% as of Mar. 2026. 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.
Good Fellow Healthcare Holdings Ltd is an investment holding company. It is engaged in the provision of general hospital services in the PRC. Geographically, it derives revenue from PRC. The company's general hospital services include medical and surgical ward, cosmetic surgery, dermatology, and medical checkup and examination services. All revenue of the group is derived from the PRC.
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