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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 %. Guizhou Aviation Technical Development Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 11.18%.
Guizhou Aviation Technical Development Co (SHSE:688239) 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, Guizhou Aviation Technical Development Co's WACC % is 13.11%. Guizhou Aviation Technical Development Co's ROIC % is 10.47% (calculated using TTM income statement data).
Guizhou Aviation Technical Development 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.
Guizhou Aviation Technical Development Co ROIC % Related Terms
Guizhou Aviation Technical Development 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.
Guizhou Aviation Technical Development Co ROIC % Chart
Guizhou Aviation Technical Development Co Annual Data
For the Aerospace & Defense subindustry, Guizhou Aviation Technical Development 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.
Guizhou Aviation Technical Development Co ROIC % vs Aerospace & Defense Industry
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.
Guizhou Aviation Technical Development Co (SHSE:688239) has a ROIC % of 11.18% 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 Guizhou Aviation Technical Development Co and its competitors.
Is Guizhou Aviation Technical Development Co's ROIC % too high?
Guizhou Aviation Technical Development Co's current ROIC % is 11.18%. The Aerospace & Defense industry median ROIC % is 4.24. Guizhou Aviation Technical Development Co's value of 11.18% is 163.7% above this industry median. Overall, Guizhou Aviation Technical Development Co has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guizhou Aviation Technical Development Co's ROIC % compare to SPCX and GE?
Guizhou Aviation Technical Development Co's ROIC % of 11.18% can be compared against companies in the Aerospace & Defense industry. The industry median ROIC % is 4.24. Guizhou Aviation Technical Development Co's value of 11.18% is 163.7% 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 Aerospace & Defense company?
The median ROIC % among Aerospace & Defense companies is 4.24, based on 354 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. Guizhou Aviation Technical Development Co's current ROIC % of 11.18% is 163.7% 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 Guizhou Aviation Technical Development Co and its competitors. For the Aerospace & Defense industry, the median ROIC % is 4.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guizhou Aviation Technical Development Co's current ROIC % is 11.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guizhou Aviation Technical Development Co stock overvalued right now?
Based on GuruFocus' analysis, Guizhou Aviation Technical Development Co (SHSE:688239) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥40.01, compared to a current price of ¥46.69 — trading 16.7% above its estimated fair value. The current ROIC % is 11.18% and 163.7% above the Aerospace & Defense industry median of 4.24. Guizhou Aviation Technical Development Co's overall GF Score™ is 88/100 with 5 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 Guizhou Aviation Technical Development Co (SHSE:688239), the current ROIC % is 11.18% 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 Guizhou Aviation Technical Development Co (SHSE:688239) Overvalued in 2026?
Based on GuruFocus' analysis, Guizhou Aviation Technical Development Co stock appears to be overvalued.
The current stock price of ¥46.69 is trading 16.7% above its estimated GF Value™ of ¥40.01.
GuruFocus considers Guizhou Aviation Technical Development Co to be Modestly Overvalued.
Key valuation signals for SHSE:688239:
ROIC %: 11.18%
GF Value™: ¥40.01 vs. price of ¥46.69 (16.7% above fair value)
Industry Position: 163.7% above the Aerospace & Defense median
No single metric tells the full story. See the SHSE:688239 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guizhou Aviation Technical Development Co Business Description
Guizhou Aviation Technical Development Co Ltd is engaged in the research and development, production and sales of annular forgings of difficult-to-deform aerospace metal materials. Its products are mainly used in domestic aircraft engines, gas turbines, space launch vehicles, missiles and other high-end equipment fields.
88GF Score
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