ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Smoore International Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 7.11%.
As of today (2026-06-26), Smoore International Holdings's WACC % is 13.45%. Smoore International Holdings's ROIC % is 5.74% (calculated using TTM income statement data).
Smoore International Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Smoore International Holdings (OTCPK:SMORF) 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, Smoore International Holdings's WACC % is 13.45%. Smoore International Holdings's ROIC % is 5.74% (calculated using TTM income statement data).
Smoore International Holdings 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.
Smoore International Holdings ROIC % Related Terms
Smoore International Holdings 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 Tobacco subindustry, Smoore International Holdings'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.
Smoore International Holdings ROIC % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Smoore International Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Smoore International Holdings's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) 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.
Smoore International Holdings (SMORF) has a ROIC % of 7.11% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Smoore International Holdings and its competitors.
Is Smoore International Holdings' ROIC % too high?
Smoore International Holdings' current ROIC % is 7.11%. The Tobacco Products industry median ROIC % is 8.99. Smoore International Holdings' value of 7.11% is 20.9% below this industry median. Overall, Smoore International Holdings has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does Smoore International Holdings' ROIC % compare to PM and MO?
Smoore International Holdings' ROIC % of 7.11% can be compared against companies in the Tobacco Products industry. The industry median ROIC % is 8.99. Smoore International Holdings' value of 7.11% is 20.9% 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 Tobacco Products company?
The median ROIC % among Tobacco Products companies is 8.99, based on 48 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. Smoore International Holdings's current ROIC % of 7.11% is 20.9% 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 Smoore International Holdings and its competitors. For the Tobacco Products industry, the median ROIC % is 8.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smoore International Holdings's current ROIC % is 7.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smoore International Holdings stock overvalued right now?
Smoore International Holdings (SMORF) has a current ROIC % of 7.11%. The stock's GF Value™ is $2.40, compared to a current price of $1.40 — trading 41.7% below its estimated fair value. The current ROIC % is 7.11% and 20.9% below the Tobacco Products industry median of 8.99. Smoore International Holdings' overall GF Score™ is 90/100 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 Smoore International Holdings (SMORF), the current ROIC % is 7.11% as of Dec. 2025. 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 Smoore International Holdings (SMORF) Overvalued in 2026?
Based on GuruFocus' analysis, Smoore International Holdings stock appears to be undervalued.
The current stock price of $1.40 is trading 41.7% below its estimated GF Value™ of $2.40.
Key valuation signals for SMORF:
ROIC %: 7.11%
GF Value™: $2.40 vs. price of $1.40 (41.7% below fair value)
Industry Position: 20.9% below the Tobacco Products median
No single metric tells the full story. See the SMORF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smoore International Holdings Business Description
Smoore International Holdings Ltd is engaged in providing atomization technology solutions. The group operates through two business segments: Corporate Client Oriented Business (ToB Business) and Self-Branded Business. The ToB Business focuses on the research, design, and manufacturing of vaping, heat-not-burn (HNB), and other atomization products, along with related technological services for corporate clients. The Self-Branded Business is involved in the research, design, manufacturing, and sale of self-branded electronic vaping and beauty atomization products. It generates the majority of its revenue from the Corporate Client Oriented Business (ToB Business) segment.
90GF Score
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