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 Three Gorges Renewables (Group) Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.34%.
China Three Gorges Renewables (Group) Co (SHSE:600905) 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 Three Gorges Renewables (Group) Co's WACC % is 3.21%. China Three Gorges Renewables (Group) Co's ROIC % is 1.98% (calculated using TTM income statement data).
China Three Gorges Renewables (Group) 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.
China Three Gorges Renewables (Group) Co ROIC % Related Terms
China Three Gorges Renewables (Group) 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.
China Three Gorges Renewables (Group) Co ROIC % Chart
China Three Gorges Renewables (Group) Co Annual Data
China Three Gorges Renewables (Group) Co ROIC % Competitor Comparison
For the Utilities - Renewable subindustry, China Three Gorges Renewables (Group) 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.
China Three Gorges Renewables (Group) Co ROIC % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, China Three Gorges Renewables (Group) Co's ROIC % distribution charts can be found below:
* The bar in red indicates where China Three Gorges Renewables (Group) 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.
China Three Gorges Renewables (Group) Co (SHSE:600905) has a ROIC % of 2.34% 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 Three Gorges Renewables (Group) Co and its competitors.
Is China Three Gorges Renewables (Group) Co's ROIC % too high?
China Three Gorges Renewables (Group) Co's current ROIC % is 2.34%. The Utilities - Independent Power Producers industry median ROIC % is 2.29. China Three Gorges Renewables (Group) Co's value of 2.34% is 2.2% above this industry median. Overall, China Three Gorges Renewables (Group) Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Three Gorges Renewables (Group) Co's ROIC % compare to competitors?
China Three Gorges Renewables (Group) Co's ROIC % of 2.34% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROIC % is 2.29. China Three Gorges Renewables (Group) Co's value of 2.34% is 2.2% 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 Utilities - Independent Power Producers company?
The median ROIC % among Utilities - Independent Power Producers companies is 2.29, based on 429 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 Three Gorges Renewables (Group) Co's current ROIC % of 2.34% is 2.2% 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 Three Gorges Renewables (Group) Co and its competitors. For the Utilities - Independent Power Producers industry, the median ROIC % is 2.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Three Gorges Renewables (Group) Co's current ROIC % is 2.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Three Gorges Renewables (Group) Co stock overvalued right now?
Based on GuruFocus' analysis, China Three Gorges Renewables (Group) Co (SHSE:600905) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥4.42, compared to a current price of ¥3.77 — trading 14.7% below its estimated fair value. The current ROIC % is 2.34% and 2.2% above the Utilities - Independent Power Producers industry median of 2.29. China Three Gorges Renewables (Group) Co's overall GF Score™ is 83/100 with 9 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 Three Gorges Renewables (Group) Co (SHSE:600905), the current ROIC % is 2.34% 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 Three Gorges Renewables (Group) Co (SHSE:600905) Overvalued in 2026?
Based on GuruFocus' analysis, China Three Gorges Renewables (Group) Co stock appears to be undervalued.
The current stock price of ¥3.77 is trading 14.7% below its estimated GF Value™ of ¥4.42.
GuruFocus considers China Three Gorges Renewables (Group) Co to be Modestly Undervalued.
Key valuation signals for SHSE:600905:
ROIC %: 2.34%
GF Value™: ¥4.42 vs. price of ¥3.77 (14.7% below fair value)
Industry Position: 2.2% above the Utilities - Independent Power Producers median
No single metric tells the full story. See the SHSE:600905 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Three Gorges Renewables (Group) Co Business Description
China Three Gorges Renewables is one of China's largest renewable energy producers. The firm operates wind farms, photovoltaic power plants, hydroelectric power plants, and energy storage projects. CTGR has a total generation capacity of about 52.4 gigawatts as of the end of 2025. The firm is also one of the largest offshore wind farm operators in China, with 7.5 GW of installed capacity at the end of 2025. Parent company China Three Gorges, a state-owned enterprise, owns approximately 52.3% of CTGR's issued shares as of the end of 2025.
83GF Score
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