ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sihuan Pharmaceutical Holdings Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 2.99%.
As of today (2026-06-25), Sihuan Pharmaceutical Holdings Group's WACC % is 11.35%. Sihuan Pharmaceutical Holdings Group's ROIC % is 2.48% (calculated using TTM income statement data).
Sihuan Pharmaceutical Holdings Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sihuan Pharmaceutical Holdings Group (OTCPK:SHPHF) 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, Sihuan Pharmaceutical Holdings Group's WACC % is 11.35%. Sihuan Pharmaceutical Holdings Group's ROIC % is 2.48% (calculated using TTM income statement data).
Sihuan Pharmaceutical Holdings 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.
Sihuan Pharmaceutical Holdings Group ROIC % Related Terms
Sihuan Pharmaceutical Holdings Group ROIC % Historical Data
* 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 Drug Manufacturers - Specialty & Generic subindustry, Sihuan Pharmaceutical Holdings 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.
Sihuan Pharmaceutical Holdings Group ROIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sihuan Pharmaceutical Holdings Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Sihuan Pharmaceutical Holdings Group'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.
Sihuan Pharmaceutical Holdings Group (SHPHF) has a ROIC % of 2.99% 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 Sihuan Pharmaceutical Holdings Group and its competitors.
Is Sihuan Pharmaceutical Holdings Group's ROIC % too high?
Sihuan Pharmaceutical Holdings Group's current ROIC % is 2.99%. The Drug Manufacturers industry median ROIC % is 4.44. Sihuan Pharmaceutical Holdings Group's value of 2.99% is 32.7% below this industry median. Overall, Sihuan Pharmaceutical Holdings Group has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sihuan Pharmaceutical Holdings Group's ROIC % compare to ZTS?
Sihuan Pharmaceutical Holdings Group's ROIC % of 2.99% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.44. Sihuan Pharmaceutical Holdings Group's value of 2.99% is 32.7% below 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 Drug Manufacturers company?
The median ROIC % among Drug Manufacturers companies is 4.44, based on 985 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. Sihuan Pharmaceutical Holdings Group's current ROIC % of 2.99% is 32.7% below 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 Sihuan Pharmaceutical Holdings Group and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sihuan Pharmaceutical Holdings Group's current ROIC % is 2.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sihuan Pharmaceutical Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, Sihuan Pharmaceutical Holdings Group (SHPHF) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.17, compared to a current price of $0.13 — trading 23.7% below its estimated fair value. The current ROIC % is 2.99% and 32.7% below the Drug Manufacturers industry median of 4.44. Sihuan Pharmaceutical Holdings Group's overall GF Score™ is 52/100 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 Sihuan Pharmaceutical Holdings Group (SHPHF), the current ROIC % is 2.99% 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 Sihuan Pharmaceutical Holdings Group (SHPHF) Overvalued in 2026?
Based on GuruFocus' analysis, Sihuan Pharmaceutical Holdings Group stock appears to be undervalued.
The current stock price of $0.13 is trading 23.7% below its estimated GF Value™ of $0.17.
GuruFocus considers Sihuan Pharmaceutical Holdings Group to be Modestly Undervalued.
Key valuation signals for SHPHF:
ROIC %: 2.99%
GF Value™: $0.17 vs. price of $0.13 (23.7% below fair value)
Industry Position: 32.7% below the Drug Manufacturers median
No single metric tells the full story. See the SHPHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sihuan Pharmaceutical Holdings Group Business Description
Sihuan Pharmaceutical Holdings Group Ltd is an investment holding company. Along with its subsidiaries, the company is engaged in the research & development and the manufacture & sale of pharmaceutical products. Its portfolio comprises products for diseases related to the cardio-cerebral vascular (CCV) system, Respiratory, Neurology, and others. The group has three reportable segments: the medical aesthetic products segment, including the filling, shaping, supporting, supplementing, optoelectronic device, body sculpturing, skincare, and others; the innovative medicine and other medicine segment; and the generic medicine segment, which generates key revenue. Geographically, the company generates a majority of its revenue from Mainland China and the rest from the United States.
52GF Score
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