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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 %. Atlantic China Welding Consumables's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 11.06%.
As of today (2026-07-23), Atlantic China Welding Consumables's WACC % is 9.85%. Atlantic China Welding Consumables's ROIC % is 10.49% (calculated using TTM income statement data).
Atlantic China Welding Consumables 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.
Atlantic China Welding Consumables (SHSE:600558) 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, Atlantic China Welding Consumables's WACC % is 9.85%. Atlantic China Welding Consumables's ROIC % is 10.49% (calculated using TTM income statement data).
Atlantic China Welding Consumables 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.
Atlantic China Welding Consumables ROIC % Related Terms
Atlantic China Welding Consumables 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 Specialty Industrial Machinery subindustry, Atlantic China Welding Consumables'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.
Atlantic China Welding Consumables ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Atlantic China Welding Consumables's ROIC % distribution charts can be found below:
* The bar in red indicates where Atlantic China Welding Consumables'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.
Atlantic China Welding Consumables (SHSE:600558) has a ROIC % of 11.06% 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 Atlantic China Welding Consumables and its competitors.
Is Atlantic China Welding Consumables' ROIC % too high?
Atlantic China Welding Consumables' current ROIC % is 11.06%. The Industrial Products industry median ROIC % is 5.17. Atlantic China Welding Consumables' value of 11.06% is 113.9% above this industry median. Overall, Atlantic China Welding Consumables has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Atlantic China Welding Consumables' ROIC % compare to GEV and ETN?
Atlantic China Welding Consumables' ROIC % of 11.06% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.17. Atlantic China Welding Consumables' value of 11.06% is 113.9% 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 Industrial Products company?
The median ROIC % among Industrial Products companies is 5.17, based on 3,034 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. Atlantic China Welding Consumables's current ROIC % of 11.06% is 113.9% 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 Atlantic China Welding Consumables and its competitors. For the Industrial Products industry, the median ROIC % is 5.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Atlantic China Welding Consumables's current ROIC % is 11.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Atlantic China Welding Consumables stock overvalued right now?
Based on GuruFocus' analysis, Atlantic China Welding Consumables (SHSE:600558) is currently considered Fairly Valued. The stock's GF Value™ is ¥4.68, compared to a current price of ¥4.71 — trading 0.6% above its estimated fair value. The current ROIC % is 11.06% and 113.9% above the Industrial Products industry median of 5.17. Atlantic China Welding Consumables' overall GF Score™ is 79/100. 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 Atlantic China Welding Consumables (SHSE:600558), the current ROIC % is 11.06% 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 Atlantic China Welding Consumables (SHSE:600558) Overvalued in 2026?
Based on GuruFocus' analysis, Atlantic China Welding Consumables stock appears to be overvalued.
The current stock price of ¥4.71 is trading 0.6% above its estimated GF Value™ of ¥4.68.
GuruFocus considers Atlantic China Welding Consumables to be Fairly Valued.
Key valuation signals for SHSE:600558:
ROIC %: 11.06%
GF Value™: ¥4.68 vs. price of ¥4.71 (0.6% above fair value)
Industry Position: 113.9% above the Industrial Products median
No single metric tells the full story. See the SHSE:600558 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Atlantic China Welding Consumables Business Description
Atlantic China Welding Consumables Inc is a welding consumable manufactory in China. The company's product consists of welding rods (carbon steel welding rods, low alloy steel welding rods, stainless steel welding rods, cladding welding rods, cast iron welding rods, nickel and nickel alloy welding rods, copper and copper alloy welding rods), welding wires (solid welding wires for gas shielded welding of MAG, MIG and TIG, flux-cored welding wires, non-ferrous metal welding wires, and submerged arc welding wires), and fluxes (various smelting and sintering fluxes for submerged arc welding and electro slag welding) with more than 700 varieties in three series.
79GF Score
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