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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. QDM International's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 656.30%.
As of today (2026-07-15), QDM International's WACC % is -54.10%. QDM International's ROIC % is 506.57% (calculated using TTM income statement data).
QDM International 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.
QDM International (OTCPK:QDMI) 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, QDM International's WACC % is -54.10%. QDM International's ROIC % is 506.57% (calculated using TTM income statement data).
QDM International 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.
QDM International ROIC % Related Terms
QDM International ROIC % Historical Data
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The historical data trend for QDM International'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 Insurance Brokers subindustry, QDM International'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.
QDM International ROIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, QDM International's ROIC % distribution charts can be found below:
* The bar in red indicates where QDM International'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.
QDM International (QDMI) has a ROIC % of 656.30% 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 QDM International and its competitors.
Is QDM International's ROIC % too high?
QDM International's current ROIC % is 656.30%. The Insurance industry median ROIC % is 3.36. QDM International's value of 656.30% is 19432.7% above this industry median. Overall, QDM International has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does QDM International's ROIC % compare to EHTH and XHG?
QDM International's ROIC % of 656.30% can be compared against companies in the Insurance industry. The industry median ROIC % is 3.36. QDM International's value of 656.30% is 19432.7% 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 Insurance company?
The median ROIC % among Insurance companies is 3.36, based on 372 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. QDM International's current ROIC % of 656.30% is 19432.7% 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 QDM International and its competitors. For the Insurance industry, the median ROIC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. QDM International's current ROIC % is 656.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is QDM International stock overvalued right now?
Based on GuruFocus' analysis, QDM International (QDMI) is currently considered Possible Value Trap. The stock's GF Value™ is $162.47, compared to a current price of $5.00 — trading 96.9% below its estimated fair value. The current ROIC % is 656.30% and 19432.7% above the Insurance industry median of 3.36. QDM International's overall GF Score™ is 57/100 with 2 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 QDM International (QDMI), the current ROIC % is 656.30% 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 QDM International (QDMI) Overvalued in 2026?
Based on GuruFocus' analysis, QDM International stock appears to be undervalued.
The current stock price of $5.00 is trading 96.9% below its estimated GF Value™ of $162.47.
GuruFocus considers QDM International to be Possible Value Trap.
Key valuation signals for QDMI:
ROIC %: 656.30%
GF Value™: $162.47 vs. price of $5.00 (96.9% below fair value)
Industry Position: 19432.7% above the Insurance median
No single metric tells the full story. See the QDMI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
QDM International Inc is a holding company. Along with its subsidiaries, it is engaged in the insurance brokerage business mainly in Hong Kong. The group sells a wide range of insurance products, consisting of two main categories: life and medical insurance, such as individual life insurance, and general insurance, such as automobile insurance, commercial property insurance, etc. In addition, as a Mandatory Provident Fund Intermediary, it also provides customers with assistance on account opening and related services under the MPF and the Occupational Retirement Schemes Ordinance (ORSO) schemes, both of which are mandatory retirement protection schemes set up for employees who are Hong Kong residents. The group generates a majority of its revenue from the insurance brokerage business.
57GF Score
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