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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 %. Yonyou Auto Information Technology (Shanghai) Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.53%.
Yonyou Auto Information Technology (Shanghai) Co (SHSE:688479) 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, Yonyou Auto Information Technology (Shanghai) Co's WACC % is 12.64%. Yonyou Auto Information Technology (Shanghai) Co's ROIC % is 4.57% (calculated using TTM income statement data).
Yonyou Auto Information Technology (Shanghai) 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.
Yonyou Auto Information Technology (Shanghai) Co ROIC % Related Terms
Yonyou Auto Information Technology (Shanghai) 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.
Yonyou Auto Information Technology (Shanghai) Co ROIC % Chart
Yonyou Auto Information Technology (Shanghai) Co Annual Data
* 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.
Yonyou Auto Information Technology (Shanghai) Co ROIC % vs Software 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.
Yonyou Auto Information Technology (Shanghai) Co (SHSE:688479) has a ROIC % of 3.53% 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 Yonyou Auto Information Technology (Shanghai) Co and its competitors.
Is Yonyou Auto Information Technology (Shanghai) Co's ROIC % too high?
Yonyou Auto Information Technology (Shanghai) Co's current ROIC % is 3.53%. The Software industry median ROIC % is 3.13. Yonyou Auto Information Technology (Shanghai) Co's value of 3.53% is 12.8% above this industry median. Overall, Yonyou Auto Information Technology (Shanghai) Co has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Yonyou Auto Information Technology (Shanghai) Co's ROIC % compare to UBER and SHOP?
Yonyou Auto Information Technology (Shanghai) Co's ROIC % of 3.53% can be compared against companies in the Software industry. The industry median ROIC % is 3.13. Yonyou Auto Information Technology (Shanghai) Co's value of 3.53% is 12.8% 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 Software company?
The median ROIC % among Software companies is 3.13, based on 2,831 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. Yonyou Auto Information Technology (Shanghai) Co's current ROIC % of 3.53% is 12.8% 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 Yonyou Auto Information Technology (Shanghai) Co and its competitors. For the Software industry, the median ROIC % is 3.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yonyou Auto Information Technology (Shanghai) Co's current ROIC % is 3.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yonyou Auto Information Technology (Shanghai) Co stock overvalued right now?
Based on GuruFocus' analysis, Yonyou Auto Information Technology (Shanghai) Co (SHSE:688479) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥11.29, compared to a current price of ¥29.03 — trading 157.1% above its estimated fair value. The current ROIC % is 3.53% and 12.8% above the Software industry median of 3.13. Yonyou Auto Information Technology (Shanghai) Co's overall GF Score™ is 61/100 with 7 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 Yonyou Auto Information Technology (Shanghai) Co (SHSE:688479), the current ROIC % is 3.53% 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 Yonyou Auto Information Technology (Shanghai) Co (SHSE:688479) Overvalued in 2026?
Based on GuruFocus' analysis, Yonyou Auto Information Technology (Shanghai) Co stock appears to be overvalued.
The current stock price of ¥29.03 is trading 157.1% above its estimated GF Value™ of ¥11.29.
GuruFocus considers Yonyou Auto Information Technology (Shanghai) Co to be Significantly Overvalued.
Key valuation signals for SHSE:688479:
ROIC %: 3.53%
GF Value™: ¥11.29 vs. price of ¥29.03 (157.1% above fair value)
Industry Position: 12.8% above the Software median
No single metric tells the full story. See the SHSE:688479 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yonyou Auto Information Technology (Shanghai) Co Business Description
Yonyou Auto Information Technology (Shanghai) Co Ltd is in the field of automotive industry marketing and aftermarket services, providing customers with related software products and services. The company is engaged in computer hardware and software and network equipment, product and system integration technology development, technology transfer, technical service, technical consultation, and sales of electronic products.
61GF Score
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