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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 %. China United Network Communications's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.73%.
As of today (2026-07-15), China United Network Communications's WACC % is 7.91%. China United Network Communications's ROIC % is 3.04% (calculated using TTM income statement data).
China United Network Communications earns returns that do not match up to its cost of capital. It will destroy value as it grows.
China United Network Communications (SHSE:600050) 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, China United Network Communications's WACC % is 7.91%. China United Network Communications's ROIC % is 3.04% (calculated using TTM income statement data).
China United Network Communications 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.
China United Network Communications ROIC % Related Terms
China United Network Communications 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 Telecom Services subindustry, China United Network Communications'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.
China United Network Communications ROIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, China United Network Communications's ROIC % distribution charts can be found below:
* The bar in red indicates where China United Network Communications'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.
China United Network Communications (SHSE:600050) has a ROIC % of 4.73% 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 China United Network Communications and its competitors.
Is China United Network Communications' ROIC % too high?
China United Network Communications' current ROIC % is 4.73%. The Telecommunication Services industry median ROIC % is 4.53. China United Network Communications' value of 4.73% is 4.4% above this industry median. Overall, China United Network Communications has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China United Network Communications' ROIC % compare to TMUS and VZ?
China United Network Communications' ROIC % of 4.73% can be compared against companies in the Telecommunication Services industry. The industry median ROIC % is 4.53. China United Network Communications' value of 4.73% is 4.4% 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 Telecommunication Services company?
The median ROIC % among Telecommunication Services companies is 4.53, based on 361 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. China United Network Communications's current ROIC % of 4.73% is 4.4% 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 China United Network Communications and its competitors. For the Telecommunication Services industry, the median ROIC % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China United Network Communications's current ROIC % is 4.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China United Network Communications stock overvalued right now?
Based on GuruFocus' analysis, China United Network Communications (SHSE:600050) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥5.16, compared to a current price of ¥4.27 — trading 17.2% below its estimated fair value. The current ROIC % is 4.73% and 4.4% above the Telecommunication Services industry median of 4.53. China United Network Communications' overall GF Score™ is 72/100 with 5 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 China United Network Communications (SHSE:600050), the current ROIC % is 4.73% 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 China United Network Communications (SHSE:600050) Overvalued in 2026?
Based on GuruFocus' analysis, China United Network Communications stock appears to be undervalued.
The current stock price of ¥4.27 is trading 17.2% below its estimated GF Value™ of ¥5.16.
GuruFocus considers China United Network Communications to be Modestly Undervalued.
Key valuation signals for SHSE:600050:
ROIC %: 4.73%
GF Value™: ¥5.16 vs. price of ¥4.27 (17.2% below fair value)
Industry Position: 4.4% above the Telecommunication Services median
No single metric tells the full story. See the SHSE:600050 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China United Network Communications Business Description
China United Network Communications Ltd is a Chinese telecom operator. It operates fixed and mobile communications services, as well as domestic and international communications facilities, a satellite IPLC service, a data communications service, a network access service, value-added telecom services, and system integration services related to information and communications services. The company provides its products to personal & residential customers, small & medium businesses, VIP customers, and international customers.
72GF Score
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