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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 %. Changyu Holding Group Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 23.57%.
As of today (2026-07-30), Changyu Holding Group Co's WACC % is 10.67%. Changyu Holding Group Co's ROIC % is -34.26% (calculated using TTM income statement data).
Changyu Holding Group Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Changyu Holding Group Co (SHSE:603407) 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, Changyu Holding Group Co's WACC % is 10.67%. Changyu Holding Group Co's ROIC % is -34.26% (calculated using TTM income statement data).
Changyu Holding 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.
* 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 Chemicals subindustry, Changyu Holding 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.
Changyu Holding Group Co ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Changyu Holding Group Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Changyu Holding 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.
Changyu Holding Group Co (SHSE:603407) has a ROIC % of 23.57% 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 Changyu Holding Group Co and its competitors.
Is Changyu Holding Group Co's ROIC % too high?
Changyu Holding Group Co's current ROIC % is 23.57%. The Chemicals industry median ROIC % is 4.49. Changyu Holding Group Co's value of 23.57% is 424.9% above this industry median. Overall, Changyu Holding Group Co has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Changyu Holding Group Co's ROIC % compare to LIN and SHW?
Changyu Holding Group Co's ROIC % of 23.57% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.49. Changyu Holding Group Co's value of 23.57% is 424.9% 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.49, based on 1,577 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. Changyu Holding Group Co's current ROIC % of 23.57% is 424.9% 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 Changyu Holding Group Co and its competitors. For the Chemicals industry, the median ROIC % is 4.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Changyu Holding Group Co's current ROIC % is 23.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Changyu Holding Group Co stock overvalued right now?
Changyu Holding Group Co (SHSE:603407) has a current ROIC % of 23.57%. The current ROIC % is 23.57% and 424.9% above the Chemicals industry median of 4.49. Changyu Holding Group Co's overall GF Score™ is 18/100 with 2 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 Changyu Holding Group Co (SHSE:603407), the current ROIC % is 23.57% 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.
Changyu Holding Group Co Ltd is engaged in the research, development, production, and sale of zirconium products, specialty nylon products, and fine chemical products. Its main products include zirconium oxide, zirconium oxychloride, nano-zirconia powder materials, long-chain specialty nylon materials, long-chain dicarboxylic acids, and long-chain diols, which are used in the automotive, home appliance, communications, smart wearable, high-performance ceramics, and medical and pharmaceutical industries. It exports its products to Europe, the United States, Japan, South Korea, India, Southeast Asia, and other countries and regions.
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