ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Shui On Land's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 0.57%.
As of today (2026-06-25), Shui On Land's WACC % is 4.17%. Shui On Land's ROIC % is 1.32% (calculated using TTM income statement data).
Shui On Land earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Shui On Land (OTCPK:SOLLY) 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, Shui On Land's WACC % is 4.17%. Shui On Land's ROIC % is 1.32% (calculated using TTM income statement data).
Shui On Land 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.
Shui On Land ROIC % Related Terms
Shui On Land ROIC % Historical Data
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The historical data trend for Shui On Land's ROIC % can be seen below:
* 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 Real Estate - Development subindustry, Shui On Land'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.
Shui On Land ROIC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Shui On Land's ROIC % distribution charts can be found below:
* The bar in red indicates where Shui On Land'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.
Shui On Land (SOLLY) has a ROIC % of 0.57% 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 Shui On Land and its competitors.
Is Shui On Land's ROIC % too high?
Shui On Land's current ROIC % is 0.57%. The Real Estate industry median ROIC % is 2.19. Shui On Land's value of 0.57% is 74% below this industry median. Overall, Shui On Land has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shui On Land's ROIC % compare to competitors?
Shui On Land's ROIC % of 0.57% can be compared against companies in the Real Estate industry. The industry median ROIC % is 2.19. Shui On Land's value of 0.57% is 74% 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 Real Estate company?
The median ROIC % among Real Estate companies is 2.19, based on 1,757 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. Shui On Land's current ROIC % of 0.57% is 74% 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 Shui On Land and its competitors. For the Real Estate industry, the median ROIC % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shui On Land's current ROIC % is 0.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shui On Land stock overvalued right now?
Based on GuruFocus' analysis, Shui On Land (SOLLY) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.73, compared to a current price of $2.73 — trading 57.8% above its estimated fair value. The current ROIC % is 0.57% and 74% below the Real Estate industry median of 2.19. Shui On Land's overall GF Score™ is 45/100 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 Shui On Land (SOLLY), the current ROIC % is 0.57% 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 Shui On Land (SOLLY) Overvalued in 2026?
Based on GuruFocus' analysis, Shui On Land stock appears to be overvalued.
The current stock price of $2.73 is trading 57.8% above its estimated GF Value™ of $1.73.
GuruFocus considers Shui On Land to be Significantly Overvalued.
Key valuation signals for SOLLY:
ROIC %: 0.57%
GF Value™: $1.73 vs. price of $2.73 (57.8% above fair value)
Industry Position: 74% below the Real Estate median
No single metric tells the full story. See the SOLLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shui On Land Ltd is an investment holding company. It develops and operates residential, office, retail, entertainment, and cultural properties. The reportable segments of the company are Property development which is engaged in development and sale of properties. Property investment which is engaged in offices and commercial/mall leasing. Property management which is engaged in provision of daily management service to the properties. Construction which is engaged in construction, interior fitting-out, renovation and maintenance of building premises.
45GF Score
Get the complete analysis for SOLLY
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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