ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Hansoh Pharmaceutical Group Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 60.22%.
As of today (2026-07-03), Hansoh Pharmaceutical Group Co's WACC % is 8.65%. Hansoh Pharmaceutical Group Co's ROIC % is 70.04% (calculated using TTM income statement data).
Hansoh Pharmaceutical Group Co 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.
Hansoh Pharmaceutical Group Co (OTCPK:HNSPF) 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, Hansoh Pharmaceutical Group Co's WACC % is 8.65%. Hansoh Pharmaceutical Group Co's ROIC % is 70.04% (calculated using TTM income statement data).
Hansoh Pharmaceutical Group Co 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.
Hansoh Pharmaceutical Group Co ROIC % Related Terms
Hansoh Pharmaceutical Group Co 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 Drug Manufacturers - Specialty & Generic subindustry, Hansoh Pharmaceutical Group Co'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.
Hansoh Pharmaceutical Group Co ROIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hansoh Pharmaceutical Group Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Hansoh Pharmaceutical Group Co'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.
Hansoh Pharmaceutical Group Co (HNSPF) has a ROIC % of 60.22% 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 Hansoh Pharmaceutical Group Co and its competitors.
Is Hansoh Pharmaceutical Group Co's ROIC % too high?
Hansoh Pharmaceutical Group Co's current ROIC % is 60.22%. The Drug Manufacturers industry median ROIC % is 4.50. Hansoh Pharmaceutical Group Co's value of 60.22% is 1239.7% above this industry median. Overall, Hansoh Pharmaceutical Group Co has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hansoh Pharmaceutical Group Co's ROIC % compare to ZTS and UTHR?
Hansoh Pharmaceutical Group Co's ROIC % of 60.22% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.50. Hansoh Pharmaceutical Group Co's value of 60.22% is 1239.7% 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 Drug Manufacturers company?
The median ROIC % among Drug Manufacturers companies is 4.50, based on 984 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. Hansoh Pharmaceutical Group Co's current ROIC % of 60.22% is 1239.7% 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 Hansoh Pharmaceutical Group Co and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hansoh Pharmaceutical Group Co's current ROIC % is 60.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hansoh Pharmaceutical Group Co stock overvalued right now?
Based on GuruFocus' analysis, Hansoh Pharmaceutical Group Co (HNSPF) is currently considered Modestly Overvalued. The stock's GF Value™ is $3.00, compared to a current price of $3.83 — trading 27.5% above its estimated fair value. The current ROIC % is 60.22% and 1239.7% above the Drug Manufacturers industry median of 4.50. Hansoh Pharmaceutical Group Co's overall GF Score™ is 90/100. 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 Hansoh Pharmaceutical Group Co (HNSPF), the current ROIC % is 60.22% 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 Hansoh Pharmaceutical Group Co (HNSPF) Overvalued in 2026?
Based on GuruFocus' analysis, Hansoh Pharmaceutical Group Co stock appears to be overvalued.
The current stock price of $3.83 is trading 27.5% above its estimated GF Value™ of $3.00.
GuruFocus considers Hansoh Pharmaceutical Group Co to be Modestly Overvalued.
Key valuation signals for HNSPF:
ROIC %: 60.22%
GF Value™: $3.00 vs. price of $3.83 (27.5% above fair value)
Industry Position: 1239.7% above the Drug Manufacturers median
No single metric tells the full story. See the HNSPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hansoh Pharmaceutical Group Co Business Description
Hansoh Pharmaceutical Group Co Ltd is an investment holding company. The company were principally engaged in the research and development, production and sale of a series of pharmaceutical products in the People's Republic of China. It focuses on disease therapeutic areas such as oncology, anti-infectives, CNS, metabolism and immunology. The majority of Group's revenue was generated from the sale of pharmaceutical products in Chinese mainland.
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