ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Hongkong Land Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 0.08%.
As of today (2026-07-01), Hongkong Land Holdings's WACC % is 6.35%. Hongkong Land Holdings's ROIC % is 0.76% (calculated using TTM income statement data).
Hongkong Land Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Hongkong Land Holdings (OTCPK:HNGKY) 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, Hongkong Land Holdings's WACC % is 6.35%. Hongkong Land Holdings's ROIC % is 0.76% (calculated using TTM income statement data).
Hongkong Land 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.
Hongkong Land Holdings ROIC % Competitor Comparison
For the Real Estate - Development subindustry, Hongkong Land 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.
Hongkong Land Holdings ROIC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Hongkong Land Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Hongkong Land 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.
Hongkong Land Holdings (HNGKY) has a ROIC % of 0.08% 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 Hongkong Land Holdings and its competitors.
Is Hongkong Land Holdings' ROIC % too high?
Hongkong Land Holdings' current ROIC % is 0.08%. The Real Estate industry median ROIC % is 2.18. Hongkong Land Holdings' value of 0.08% is 96.3% below this industry median. Overall, Hongkong Land Holdings has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hongkong Land Holdings' ROIC % compare to competitors?
Hongkong Land Holdings' ROIC % of 0.08% can be compared against companies in the Real Estate industry. The industry median ROIC % is 2.18. Hongkong Land Holdings' value of 0.08% is 96.3% below 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 Real Estate company?
The median ROIC % among Real Estate companies is 2.18, based on 1,758 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. Hongkong Land Holdings's current ROIC % of 0.08% is 96.3% below 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 Hongkong Land Holdings and its competitors. For the Real Estate industry, the median ROIC % is 2.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongkong Land Holdings's current ROIC % is 0.08%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongkong Land Holdings stock overvalued right now?
Based on GuruFocus' analysis, Hongkong Land Holdings (HNGKY) is currently considered Significantly Overvalued. The stock's GF Value™ is $14.39, compared to a current price of $35.46 — trading 146.4% above its estimated fair value. The current ROIC % is 0.08% and 96.3% below the Real Estate industry median of 2.18. Hongkong Land Holdings' overall GF Score™ is 56/100 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 Hongkong Land Holdings (HNGKY), the current ROIC % is 0.08% 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 Hongkong Land Holdings (HNGKY) Overvalued in 2026?
Based on GuruFocus' analysis, Hongkong Land Holdings stock appears to be overvalued.
The current stock price of $35.46 is trading 146.4% above its estimated GF Value™ of $14.39.
GuruFocus considers Hongkong Land Holdings to be Significantly Overvalued.
Key valuation signals for HNGKY:
ROIC %: 0.08%
GF Value™: $14.39 vs. price of $35.46 (146.4% above fair value)
Industry Position: 96.3% below the Real Estate median
No single metric tells the full story. See the HNGKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongkong Land is a property investor focusing on holding prime commercial assets in Hong Kong, mainland China, and Singapore. It is the largest office landlord in Hong Kong's Central Business District, and the second largest in Hong Kong overall. The Central portfolio includes 4.0 million square feet of office space and 0.5 million square feet of retail area. The company is also expanding its fund management business to build a recurring stream of fee income. Hongkong Land is dual listed on the London Stock Exchange and the Singapore Exchange. Jardine Matheson Holdings owns 53% of the company.
56GF Score
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