ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. MGM China Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 22.55%.
As of today (2026-07-04), MGM China Holdings's WACC % is 9.19%. MGM China Holdings's ROIC % is 22.99% (calculated using TTM income statement data).
MGM China Holdings 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.
MGM China Holdings (OTCPK:MCHVF) 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, MGM China Holdings's WACC % is 9.19%. MGM China Holdings's ROIC % is 22.99% (calculated using TTM income statement data).
MGM China Holdings 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.
MGM China Holdings ROIC % Related Terms
MGM China Holdings ROIC % Historical Data
* Premium members only.
The historical data trend for MGM China 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 Resorts & Casinos subindustry, MGM China 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.
MGM China Holdings ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, MGM China Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where MGM China 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.
MGM China Holdings (MCHVF) has a ROIC % of 22.55% 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 MGM China Holdings and its competitors.
Is MGM China Holdings' ROIC % too high?
MGM China Holdings' current ROIC % is 22.55%. The Travel & Leisure industry median ROIC % is 3.76. MGM China Holdings' value of 22.55% is 499.7% above this industry median. Overall, MGM China Holdings has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MGM China Holdings' ROIC % compare to LVS and MGM?
MGM China Holdings' ROIC % of 22.55% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.76. MGM China Holdings' value of 22.55% is 499.7% 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 Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.76, based on 832 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. MGM China Holdings's current ROIC % of 22.55% is 499.7% 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 MGM China Holdings and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MGM China Holdings's current ROIC % is 22.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MGM China Holdings stock overvalued right now?
Based on GuruFocus' analysis, MGM China Holdings (MCHVF) is currently considered Significantly Undervalued. The stock's GF Value™ is $2.25, compared to a current price of $1.28 — trading 43.1% below its estimated fair value. The current ROIC % is 22.55% and 499.7% above the Travel & Leisure industry median of 3.76. MGM China Holdings' overall GF Score™ is 79/100 with 3 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 MGM China Holdings (MCHVF), the current ROIC % is 22.55% 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 MGM China Holdings (MCHVF) Overvalued in 2026?
Based on GuruFocus' analysis, MGM China Holdings stock appears to be undervalued.
The current stock price of $1.28 is trading 43.1% below its estimated GF Value™ of $2.25.
GuruFocus considers MGM China Holdings to be Significantly Undervalued.
Key valuation signals for MCHVF:
ROIC %: 22.55%
GF Value™: $2.25 vs. price of $1.28 (43.1% below fair value)
Industry Position: 499.7% above the Travel & Leisure median
No single metric tells the full story. See the MCHVF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MGM China is one of six casino license holders in Macao. It operates two integrated resorts: the MGM Macau in the Peninsula and MGM Cotai in Cotai. The company is allowed to operate 750 gaming tables during its new 10-year concession period of 2023-32.
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