ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Shenzhen Investment Holdings Bay Area Development Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.52%.
Shenzhen Investment Holdings Bay Area Development Co (OTCPK:SIHBY) 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, Shenzhen Investment Holdings Bay Area Development Co's WACC % is 4.26%. Shenzhen Investment Holdings Bay Area Development Co's ROIC % is 1.42% (calculated using TTM income statement data).
Shenzhen Investment Holdings Bay Area 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.
Shenzhen Investment Holdings Bay Area Development Co ROIC % Related Terms
Shenzhen Investment Holdings Bay Area 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.
Shenzhen Investment Holdings Bay Area Development Co ROIC % Chart
Shenzhen Investment Holdings Bay Area Development 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.
Shenzhen Investment Holdings Bay Area Development Co ROIC % vs Construction 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.
Shenzhen Investment Holdings Bay Area Development Co (SIHBY) has a ROIC % of 1.52% 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 Shenzhen Investment Holdings Bay Area Development Co and its competitors.
Is Shenzhen Investment Holdings Bay Area Development Co's ROIC % too high?
Shenzhen Investment Holdings Bay Area Development Co's current ROIC % is 1.52%. The Construction industry median ROIC % is 4.66. Shenzhen Investment Holdings Bay Area Development Co's value of 1.52% is 67.4% below this industry median. Overall, Shenzhen Investment Holdings Bay Area Development Co has a GF Score™ of 59/100, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Investment Holdings Bay Area Development Co's ROIC % compare to competitors?
Shenzhen Investment Holdings Bay Area Development Co's ROIC % of 1.52% can be compared against companies in the Construction industry. The industry median ROIC % is 4.66. Shenzhen Investment Holdings Bay Area Development Co's value of 1.52% is 67.4% below 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 Construction company?
The median ROIC % among Construction companies is 4.66, based on 1,750 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. Shenzhen Investment Holdings Bay Area Development Co's current ROIC % of 1.52% is 67.4% below 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 Shenzhen Investment Holdings Bay Area Development Co and its competitors. For the Construction industry, the median ROIC % is 4.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Investment Holdings Bay Area Development Co's current ROIC % is 1.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Investment Holdings Bay Area Development Co stock overvalued right now?
Shenzhen Investment Holdings Bay Area Development Co (SIHBY) has a current ROIC % of 1.52%. The stock's GF Value™ is $2.18, compared to a current price of $2.40 — trading 10.1% above its estimated fair value. The current ROIC % is 1.52% and 67.4% below the Construction industry median of 4.66. Shenzhen Investment Holdings Bay Area Development Co's overall GF Score™ is 59/100 with 8 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 Shenzhen Investment Holdings Bay Area Development Co (SIHBY), the current ROIC % is 1.52% 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 Shenzhen Investment Holdings Bay Area Development Co (SIHBY) Overvalued in 2026?
Based on GuruFocus' analysis, Shenzhen Investment Holdings Bay Area Development Co stock appears to be overvalued.
The current stock price of $2.40 is trading 10.1% above its estimated GF Value™ of $2.18.
Key valuation signals for SIHBY:
ROIC %: 1.52%
GF Value™: $2.18 vs. price of $2.40 (10.1% above fair value)
Industry Position: 67.4% below the Construction median
No single metric tells the full story. See the SIHBY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenzhen Investment Holdings Bay Area Development Co Business Description
Shenzhen Investment Holdings Bay Area Development Co Ltd is an investment holding company that is engaged in expressway business and adopts development strategies focusing on the infrastructure and correlated business, as well as land development and utilisation along the GS Superhighway within the Guangdong-Hong Kong-Macao Greater Bay Area in China. The company manages its business in four segments, namely the Guangzhou-Shenzhen Superhighway, the Guangzhou-Zhuhai West Superhighway, the Coastal Expressway, and the Xintang Interchange. It generates the majority of the revenue from the Guangzhou-Shenzhen Superhighway segment.
59GF Score
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