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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 %. Elephant Holdings Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 24.91%.
As of today (2026-08-18), Elephant Holdings Group's WACC % is 4.32%. Elephant Holdings Group's ROIC % is 8.32% (calculated using TTM income statement data).
Elephant Holdings 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.
Elephant Holdings Group (HKSE:08635) 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, Elephant Holdings Group's WACC % is 4.32%. Elephant Holdings Group's ROIC % is 8.32% (calculated using TTM income statement data).
Elephant Holdings 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.
* 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 Software - Application subindustry, Elephant Holdings 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.
Elephant Holdings Group ROIC % vs Software Industry
For the Software industry and Technology sector, Elephant Holdings Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Elephant Holdings Group'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.
Elephant Holdings Group (HKSE:08635) has a ROIC % of 24.91% 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 Elephant Holdings Group and its competitors.
Is Elephant Holdings Group's ROIC % too high?
Elephant Holdings Group's current ROIC % is 24.91%. The Software industry median ROIC % is 3.35. Elephant Holdings Group's value of 24.91% is 643.6% above this industry median. Overall, Elephant Holdings Group has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Elephant Holdings Group's ROIC % compare to QH and SHOP?
Elephant Holdings Group's ROIC % of 24.91% can be compared against companies in the Software industry. The industry median ROIC % is 3.35. Elephant Holdings Group's value of 24.91% is 643.6% 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 Software company?
The median ROIC % among Software companies is 3.35, based on 2,831 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. Elephant Holdings Group's current ROIC % of 24.91% is 643.6% 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 Elephant Holdings Group and its competitors. For the Software industry, the median ROIC % is 3.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elephant Holdings Group's current ROIC % is 24.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elephant Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, Elephant Holdings Group (HKSE:08635) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.71, compared to a current price of HK$0.27 — trading 62% below its estimated fair value. The current ROIC % is 24.91% and 643.6% above the Software industry median of 3.35. Elephant Holdings Group's overall GF Score™ is 58/100 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 Elephant Holdings Group (HKSE:08635), the current ROIC % is 24.91% 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.
Is Elephant Holdings Group (HKSE:08635) Overvalued in 2026?
Based on GuruFocus' analysis, Elephant Holdings Group stock appears to be undervalued.
The current stock price of HK$0.27 is trading 62% below its estimated GF Value™ of HK$0.71.
GuruFocus considers Elephant Holdings Group to be Possible Value Trap.
Key valuation signals for HKSE:08635:
ROIC %: 24.91%
GF Value™: HK$0.71 vs. price of HK$0.27 (62% below fair value)
Industry Position: 643.6% above the Software median
No single metric tells the full story. See the HKSE:08635 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elephant Holdings Group Ltd is a Hong Kong-based financial trading solution provider, principally engaged in the development and provision of financial trading solutions, as well as the development and supply of resource allocation, planning, scheduling, and management software and services. The company mainly provides comprehensive and integrated financial trading solutions that enable the trading of OTC-traded financial instruments, stock exchange-traded financial instruments, and fund management to brokerage firms and wealth management companies. The Group has two reportable operating segments: Financial trading solutions and other IT services, and Bullion trading services, and the majority of its revenue is generated from the Financial trading solutions and other IT services segment.
58GF Score
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