ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. ZTO Express (Cayman)'s annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 10.74%.
As of today (2026-06-28), ZTO Express (Cayman)'s WACC % is 3.34%. ZTO Express (Cayman)'s ROIC % is 10.98% (calculated using TTM income statement data).
ZTO Express (Cayman) 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.
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, ZTO Express (Cayman)'s WACC % is 3.34%. ZTO Express (Cayman)'s ROIC % is 10.98% (calculated using TTM income statement data).
ZTO Express (Cayman) 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 Integrated Freight & Logistics subindustry, ZTO Express (Cayman)'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.
ZTO Express (Cayman) ROIC % vs Transportation Industry
For the Transportation industry and Industrials sector, ZTO Express (Cayman)'s ROIC % distribution charts can be found below:
* The bar in red indicates where ZTO Express (Cayman)'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.
ZTO Express (Cayman) (MEX:ZTO N) has a ROIC % of 10.74% 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 ZTO Express (Cayman) and its competitors.
Is ZTO Express (Cayman)'s ROIC % too high?
ZTO Express (Cayman)'s current ROIC % is 10.74%. The Transportation industry median ROIC % is 4.69. ZTO Express (Cayman)'s value of 10.74% is 129% above this industry median. Overall, ZTO Express (Cayman) has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does ZTO Express (Cayman)'s ROIC % compare to EXPD and CHRW?
ZTO Express (Cayman)'s ROIC % of 10.74% can be compared against companies in the Transportation industry. The industry median ROIC % is 4.69. ZTO Express (Cayman)'s value of 10.74% is 129% 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 Transportation company?
The median ROIC % among Transportation companies is 4.69, based on 986 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. ZTO Express (Cayman)'s current ROIC % of 10.74% is 129% 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 ZTO Express (Cayman) and its competitors. For the Transportation industry, the median ROIC % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZTO Express (Cayman)'s current ROIC % is 10.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZTO Express (Cayman) stock overvalued right now?
ZTO Express (Cayman) (MEX:ZTO N) has a current ROIC % of 10.74%. The stock's GF Value™ is MXN546.16, compared to a current price of MXN426.00 — trading 22% below its estimated fair value. The current ROIC % is 10.74% and 129% above the Transportation industry median of 4.69. ZTO Express (Cayman)'s overall GF Score™ is 84/100. 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 ZTO Express (Cayman) (MEX:ZTO N), the current ROIC % is 10.74% 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 ZTO Express (Cayman) (MEX:ZTO N) Overvalued in 2026?
Based on GuruFocus' analysis, ZTO Express (Cayman) stock appears to be undervalued.
The current stock price of MXN426.00 is trading 22% below its estimated GF Value™ of MXN546.16.
Key valuation signals for MEX:ZTO N:
ROIC %: 10.74%
GF Value™: MXN546.16 vs. price of MXN426.00 (22% below fair value)
Industry Position: 129% above the Transportation median
No single metric tells the full story. See the MEX:ZTO N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ZTO Express is China's largest express delivery company by parcel volume, with a volume share of 19.4% in 2024. It operates a network partner model where it provides line-haul transportation and sorting services, while its local network partners provide first-mile pickup and last-mile delivery services under the ZTO brand name. Headquartered in Shanghai, the company was founded in 2002 by Meisong Lai, who remains chair, CEO, and its major shareholder with 78% voting rights as of March 31, 2025. ZTO's strategic shareholder is leading China e-commerce company Alibaba Group with around an 8.9% interest.
84GF Score
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