ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Peijia Medical's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -12.35%.
As of today (2026-06-26), Peijia Medical's WACC % is 13.47%. Peijia Medical's ROIC % is -9.83% (calculated using TTM income statement data).
Peijia Medical earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Peijia Medical (OTCPK:PEJMF) 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, Peijia Medical's WACC % is 13.47%. Peijia Medical's ROIC % is -9.83% (calculated using TTM income statement data).
Peijia Medical 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.
Peijia Medical ROIC % Related Terms
Peijia Medical ROIC % Historical Data
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The historical data trend for Peijia Medical'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 Medical Devices subindustry, Peijia Medical'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.
Peijia Medical ROIC % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Peijia Medical's ROIC % distribution charts can be found below:
* The bar in red indicates where Peijia Medical'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.
Peijia Medical (PEJMF) has a ROIC % of -12.35% 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 Peijia Medical and its competitors.
Is Peijia Medical's ROIC % too high?
Peijia Medical's current ROIC % is -12.35%. Overall, Peijia Medical has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Peijia Medical's ROIC % compare to ABT and SYK?
Peijia Medical's ROIC % of -12.35% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROIC % is 1.26. 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 Medical Devices & Instruments company?
The median ROIC % among Medical Devices & Instruments companies is 1.26, based on 847 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. 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 Peijia Medical and its competitors. For the Medical Devices & Instruments industry, the median ROIC % is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Peijia Medical's current ROIC % is -12.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Peijia Medical stock overvalued right now?
Peijia Medical (PEJMF) has a current ROIC % of -12.35%. The stock's GF Value™ is $2.94, compared to a current price of $1.39 — trading 52.8% below its estimated fair value. The current ROIC % is -12.35%. Peijia Medical's overall GF Score™ is 76/100 with 4 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 Peijia Medical (PEJMF), the current ROIC % is -12.35% 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 Peijia Medical (PEJMF) Overvalued in 2026?
Based on GuruFocus' analysis, Peijia Medical stock appears to be undervalued.
The current stock price of $1.39 is trading 52.8% below its estimated GF Value™ of $2.94.
Key valuation signals for PEJMF:
ROIC %: -12.35%
GF Value™: $2.94 vs. price of $1.39 (52.8% below fair value)
No single metric tells the full story. See the PEJMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Peijia Medical Ltdis a provider of inventive medical products and solutions. It focuses on the high-growth interventional procedural medical device market in China. Its products and product candidates target large, fast-growing and under-penetrated markets with high entry barriers, including the transcatheter valve therapeutic medical device market and the neurointerventional procedural medical device market. The Company's product pipeline consists of transcatheter valve therapeutic and neurointerventional products and product candidates spanning three key business segments: Transcatheter Valve Therapeutic Business, Future Technology Business and Neurointerventional Business.
76GF Score
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