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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 %. Jiangsu Lianhuan Pharmaceutical Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.71%.
As of today (2026-07-24), Jiangsu Lianhuan Pharmaceutical Co's WACC % is 9.28%. Jiangsu Lianhuan Pharmaceutical Co's ROIC % is 0.60% (calculated using TTM income statement data).
Jiangsu Lianhuan Pharmaceutical Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Jiangsu Lianhuan Pharmaceutical Co (SHSE:600513) 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, Jiangsu Lianhuan Pharmaceutical Co's WACC % is 9.28%. Jiangsu Lianhuan Pharmaceutical Co's ROIC % is 0.60% (calculated using TTM income statement data).
Jiangsu Lianhuan Pharmaceutical Co 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.
Jiangsu Lianhuan Pharmaceutical Co ROIC % Related Terms
Jiangsu Lianhuan Pharmaceutical Co 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, Jiangsu Lianhuan Pharmaceutical Co'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.
Jiangsu Lianhuan Pharmaceutical Co ROIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Jiangsu Lianhuan Pharmaceutical Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Jiangsu Lianhuan Pharmaceutical Co'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.
Jiangsu Lianhuan Pharmaceutical Co (SHSE:600513) has a ROIC % of 1.71% 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 Jiangsu Lianhuan Pharmaceutical Co and its competitors.
Is Jiangsu Lianhuan Pharmaceutical Co's ROIC % too high?
Jiangsu Lianhuan Pharmaceutical Co's current ROIC % is 1.71%. The Drug Manufacturers industry median ROIC % is 4.44. Jiangsu Lianhuan Pharmaceutical Co's value of 1.71% is 61.5% below this industry median. Overall, Jiangsu Lianhuan Pharmaceutical Co has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangsu Lianhuan Pharmaceutical Co's ROIC % compare to ZTS and UTHR?
Jiangsu Lianhuan Pharmaceutical Co's ROIC % of 1.71% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.44. Jiangsu Lianhuan Pharmaceutical Co's value of 1.71% is 61.5% 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 988 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. Jiangsu Lianhuan Pharmaceutical Co's current ROIC % of 1.71% is 61.5% 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 Jiangsu Lianhuan Pharmaceutical Co 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. Jiangsu Lianhuan Pharmaceutical Co's current ROIC % is 1.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangsu Lianhuan Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Jiangsu Lianhuan Pharmaceutical Co (SHSE:600513) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥13.72, compared to a current price of ¥15.42 — trading 12.4% above its estimated fair value. The current ROIC % is 1.71% and 61.5% below the Drug Manufacturers industry median of 4.44. Jiangsu Lianhuan Pharmaceutical Co's overall GF Score™ is 65/100 with 10 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 Jiangsu Lianhuan Pharmaceutical Co (SHSE:600513), the current ROIC % is 1.71% 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 Jiangsu Lianhuan Pharmaceutical Co (SHSE:600513) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangsu Lianhuan Pharmaceutical Co stock appears to be overvalued.
The current stock price of ¥15.42 is trading 12.4% above its estimated GF Value™ of ¥13.72.
GuruFocus considers Jiangsu Lianhuan Pharmaceutical Co to be Modestly Overvalued.
Key valuation signals for SHSE:600513:
ROIC %: 1.71%
GF Value™: ¥13.72 vs. price of ¥15.42 (12.4% above fair value)
Industry Position: 61.5% below the Drug Manufacturers median
No single metric tells the full story. See the SHSE:600513 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangsu Lianhuan Pharmaceutical Co Business Description
Jiangsu Lianhuan Pharmaceutical Co Ltd is engaged in producing benign prostatic hyperplasia, allergy and cardiovascular drugs. In the field of pharmaceutical manufacturing, the company's main products include several series such as urinary system drugs, antihistamines, cardiovascular drugs, steroid hormones, antibiotics, etc., covering chemical raw materials and injections, solid preparations and various drug dosage forms, including the national first-class new drug Apelite Tablets (Chuanliu).
65GF Score
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