ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Hello Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 20.73%.
As of today (2026-06-24), Hello Group's WACC % is 10.29%. Hello Group's ROIC % is 10.29% (calculated using TTM income statement data).
Hello Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Hello Group (MEX:MOMON) 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, Hello Group's WACC % is 10.29%. Hello Group's ROIC % is 10.29% (calculated using TTM income statement data).
Hello Group 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.
Hello Group ROIC % Related Terms
Hello Group ROIC % Historical Data
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The historical data trend for Hello Group'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 Internet Content & Information subindustry, Hello 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.
Hello Group ROIC % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Hello Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Hello Group's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (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.
Hello Group (MEX:MOMON) has a ROIC % of 20.73% 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 Hello Group and its competitors.
Is Hello Group's ROIC % too high?
Hello Group's current ROIC % is 20.73%. The Interactive Media industry median ROIC % is 1.88. Hello Group's value of 20.73% is 1002.7% above this industry median. Overall, Hello Group has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hello Group's ROIC % compare to NXDR and GRPN?
Hello Group's ROIC % of 20.73% can be compared against companies in the Interactive Media industry. The industry median ROIC % is 1.88. Hello Group's value of 20.73% is 1002.7% 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 an Interactive Media company?
The median ROIC % among Interactive Media companies is 1.88, based on 560 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. Hello Group's current ROIC % of 20.73% is 1002.7% 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 Hello Group and its competitors. For the Interactive Media industry, the median ROIC % is 1.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hello Group's current ROIC % is 20.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hello Group stock overvalued right now?
Based on GuruFocus' analysis, Hello Group (MEX:MOMON) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN133.25, compared to a current price of MXN99.80 — trading 25.1% below its estimated fair value. The current ROIC % is 20.73% and 1002.7% above the Interactive Media industry median of 1.88. Hello Group's overall GF Score™ is 73/100 with 6 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 Hello Group (MEX:MOMON), the current ROIC % is 20.73% 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 Hello Group (MEX:MOMON) Overvalued in 2026?
Based on GuruFocus' analysis, Hello Group stock appears to be undervalued.
The current stock price of MXN99.80 is trading 25.1% below its estimated GF Value™ of MXN133.25.
GuruFocus considers Hello Group to be Modestly Undervalued.
Key valuation signals for MEX:MOMON:
ROIC %: 20.73%
GF Value™: MXN133.25 vs. price of MXN99.80 (25.1% below fair value)
Industry Position: 1002.7% above the Interactive Media median
No single metric tells the full story. See the MEX:MOMON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hello Group Inc is a foremost player in Asia's online social networking space. Through Momo, Tantan and other properties within its product portfolio, It enable users to discover new relationships, expand their social connections and build meaningful interactions. Momo is a mobile application that connects people and facilitates social interactions based on location, interests and a variety of online recreational activities. Tantan, which it added to its family of applications through acquisition. Tantan is designed to help its users find and establish romantic connections as well as meet interesting people. The Group determined that it operated in three operating segments namely Momo, Tantan and QOOL. The majority of revenue comes from Chinese mainland as compare to Overseas.
73GF Score
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