ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. China Maple Leaf Educational Systems's annualized return on invested capital (ROIC %) for the quarter that ended in Feb. 2026 was 3.87%.
As of today (2026-06-30), China Maple Leaf Educational Systems's WACC % is 5.00%. China Maple Leaf Educational Systems's ROIC % is 2.94% (calculated using TTM income statement data).
China Maple Leaf Educational Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.
China Maple Leaf Educational Systems (STU:CML1) 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, China Maple Leaf Educational Systems's WACC % is 5.00%. China Maple Leaf Educational Systems's ROIC % is 2.94% (calculated using TTM income statement data).
China Maple Leaf Educational Systems 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.
China Maple Leaf Educational Systems ROIC % Related Terms
China Maple Leaf Educational Systems 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 Education & Training Services subindustry, China Maple Leaf Educational Systems'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.
China Maple Leaf Educational Systems ROIC % vs Education Industry
Note:
The Operating Income data used here is two times the semi-annual (Feb. 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.
China Maple Leaf Educational Systems (STU:CML1) has a ROIC % of 3.87% as of Feb. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on China Maple Leaf Educational Systems and its competitors.
Is China Maple Leaf Educational Systems' ROIC % too high?
China Maple Leaf Educational Systems' current ROIC % is 3.87%. The Education industry median ROIC % is 4.97. China Maple Leaf Educational Systems' value of 3.87% is 22.1% below this industry median. Overall, China Maple Leaf Educational Systems has a GF Score™ of 46/100, reflecting its overall financial health beyond just this single metric.
How does China Maple Leaf Educational Systems' ROIC % compare to EDU and TAL?
China Maple Leaf Educational Systems' ROIC % of 3.87% can be compared against companies in the Education industry. The industry median ROIC % is 4.97. China Maple Leaf Educational Systems' value of 3.87% is 22.1% 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 an Education company?
The median ROIC % among Education companies is 4.97, based on 258 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. China Maple Leaf Educational Systems's current ROIC % of 3.87% is 22.1% 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 China Maple Leaf Educational Systems and its competitors. For the Education industry, the median ROIC % is 4.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Maple Leaf Educational Systems's current ROIC % is 3.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Maple Leaf Educational Systems stock overvalued right now?
China Maple Leaf Educational Systems (STU:CML1) has a current ROIC % of 3.87%. The stock's GF Value™ is €0.02, compared to a current price of €0.01 — trading 45% below its estimated fair value. The current ROIC % is 3.87% and 22.1% below the Education industry median of 4.97. China Maple Leaf Educational Systems' overall GF Score™ is 46/100 with 3 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 China Maple Leaf Educational Systems (STU:CML1), the current ROIC % is 3.87% as of Feb. 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 China Maple Leaf Educational Systems (STU:CML1) Overvalued in 2026?
Based on GuruFocus' analysis, China Maple Leaf Educational Systems stock appears to be undervalued.
The current stock price of €0.01 is trading 45% below its estimated GF Value™ of €0.02.
Key valuation signals for STU:CML1:
ROIC %: 3.87%
GF Value™: €0.02 vs. price of €0.01 (45% below fair value)
Industry Position: 22.1% below the Education median
No single metric tells the full story. See the STU:CML1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Maple Leaf Educational Systems Business Description
China Maple Leaf Educational Systems Ltd is mainly engaged in international school education in the PRC and other Asia Pacific countries. It operates international K-12 schools under three principal brands: "Maple Leaf" in China, delivering the World School Program; CIS in Singapore, offering the IB program; and KIS in Malaysia, providing the A-Level program. The company's reportable segments are as follows: (i) PRC Segment, (ii) Overseas Segment, including Singapore, Malaysia and other Asia Pacific countries. The majority of the company's revenue is derived from the Overseas Segment, mainly from Singapore. Revenue is generated from tuition and boarding fees, educational programs, textbook and materials sales, catering services, extracurricular activities, and related offerings.
46GF Score
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