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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 %. Shanghai Xintonglian Packing Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 7.88%.
As of today (2026-08-26), Shanghai Xintonglian Packing Co's WACC % is 10.06%. Shanghai Xintonglian Packing Co's ROIC % is 8.38% (calculated using TTM income statement data).
Shanghai Xintonglian Packing Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Shanghai Xintonglian Packing Co (SHSE:603022) 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, Shanghai Xintonglian Packing Co's WACC % is 10.06%. Shanghai Xintonglian Packing Co's ROIC % is 8.38% (calculated using TTM income statement data).
Shanghai Xintonglian Packing 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.
Shanghai Xintonglian Packing Co ROIC % Related Terms
Shanghai Xintonglian Packing 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 Packaging & Containers subindustry, Shanghai Xintonglian Packing 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.
Shanghai Xintonglian Packing Co ROIC % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Shanghai Xintonglian Packing Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Shanghai Xintonglian Packing 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.
Shanghai Xintonglian Packing Co (SHSE:603022) has a ROIC % of 7.88% 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 Shanghai Xintonglian Packing Co and its competitors.
Is Shanghai Xintonglian Packing Co's ROIC % too high?
Shanghai Xintonglian Packing Co's current ROIC % is 7.88%. The Packaging & Containers industry median ROIC % is 4.48. Shanghai Xintonglian Packing Co's value of 7.88% is 75.9% above this industry median. Overall, Shanghai Xintonglian Packing Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Xintonglian Packing Co's ROIC % compare to SW and PKG?
Shanghai Xintonglian Packing Co's ROIC % of 7.88% can be compared against companies in the Packaging & Containers industry. The industry median ROIC % is 4.48. Shanghai Xintonglian Packing Co's value of 7.88% is 75.9% 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 a Packaging & Containers company?
The median ROIC % among Packaging & Containers companies is 4.48, based on 407 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. Shanghai Xintonglian Packing Co's current ROIC % of 7.88% is 75.9% 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 Shanghai Xintonglian Packing Co and its competitors. For the Packaging & Containers industry, the median ROIC % is 4.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Xintonglian Packing Co's current ROIC % is 7.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Xintonglian Packing Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Xintonglian Packing Co (SHSE:603022) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥10.79, compared to a current price of ¥9.05 — trading 16.1% below its estimated fair value. The current ROIC % is 7.88% and 75.9% above the Packaging & Containers industry median of 4.48. Shanghai Xintonglian Packing Co's overall GF Score™ is 75/100 with 1 warning sign 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 Shanghai Xintonglian Packing Co (SHSE:603022), the current ROIC % is 7.88% 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 Shanghai Xintonglian Packing Co (SHSE:603022) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Xintonglian Packing Co stock appears to be undervalued.
The current stock price of ¥9.05 is trading 16.1% below its estimated GF Value™ of ¥10.79.
GuruFocus considers Shanghai Xintonglian Packing Co to be Modestly Undervalued.
Key valuation signals for SHSE:603022:
ROIC %: 7.88%
GF Value™: ¥10.79 vs. price of ¥9.05 (16.1% below fair value)
Industry Position: 75.9% above the Packaging & Containers median
No single metric tells the full story. See the SHSE:603022 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Xintonglian Packing Co Ltd is engaged in the research and development, design of packaging products, packaging solutions and testing of packaging products, manufacturing and production of packaging products, customer on-site packaging services, and warehouse management. Its packaging solution includes wood packaging, paper packaging, plastic packaging, iron packaging, paper packaging.
75GF Score
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