ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Hisense Home Appliances Group Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 18.24%.
As of today (2026-07-05), Hisense Home Appliances Group Co's WACC % is 12.59%. Hisense Home Appliances Group Co's ROIC % is 12.73% (calculated using TTM income statement data).
Hisense Home Appliances Group Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Hisense Home Appliances Group Co (STU:GKE) 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, Hisense Home Appliances Group Co's WACC % is 12.59%. Hisense Home Appliances Group Co's ROIC % is 12.73% (calculated using TTM income statement data).
Hisense Home Appliances Group Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Hisense Home Appliances Group Co ROIC % Related Terms
Hisense Home Appliances Group 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.
For the Furnishings, Fixtures & Appliances subindustry, Hisense Home Appliances Group Co'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.
Hisense Home Appliances Group Co ROIC % vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Hisense Home Appliances Group Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Hisense Home Appliances Group Co's ROIC % falls into.
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.
Hisense Home Appliances Group Co (STU:GKE) has a ROIC % of 18.24% 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 Hisense Home Appliances Group Co and its competitors.
Is Hisense Home Appliances Group Co's ROIC % too high?
Hisense Home Appliances Group Co's current ROIC % is 18.24%. The Furnishings, Fixtures & Appliances industry median ROIC % is 3.42. Hisense Home Appliances Group Co's value of 18.24% is 433.3% above this industry median. Overall, Hisense Home Appliances Group Co has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hisense Home Appliances Group Co's ROIC % compare to SN and SGI?
Hisense Home Appliances Group Co's ROIC % of 18.24% can be compared against companies in the Furnishings, Fixtures & Appliances industry. The industry median ROIC % is 3.42. Hisense Home Appliances Group Co's value of 18.24% is 433.3% 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 Furnishings, Fixtures & Appliances company?
The median ROIC % among Furnishings, Fixtures & Appliances companies is 3.42, based on 426 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. Hisense Home Appliances Group Co's current ROIC % of 18.24% is 433.3% 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 Hisense Home Appliances Group Co and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROIC % is 3.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hisense Home Appliances Group Co's current ROIC % is 18.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hisense Home Appliances Group Co stock overvalued right now?
Based on GuruFocus' analysis, Hisense Home Appliances Group Co (STU:GKE) is currently considered Fairly Valued. The stock's GF Value™ is €2.65, compared to a current price of €2.70 — trading 1.9% above its estimated fair value. The current ROIC % is 18.24% and 433.3% above the Furnishings, Fixtures & Appliances industry median of 3.42. Hisense Home Appliances Group Co's overall GF Score™ is 93/100 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 Hisense Home Appliances Group Co (STU:GKE), the current ROIC % is 18.24% 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 Hisense Home Appliances Group Co (STU:GKE) Overvalued in 2026?
Based on GuruFocus' analysis, Hisense Home Appliances Group Co stock appears to be overvalued.
The current stock price of €2.70 is trading 1.9% above its estimated GF Value™ of €2.65.
GuruFocus considers Hisense Home Appliances Group Co to be Fairly Valued.
Key valuation signals for STU:GKE:
ROIC %: 18.24%
GF Value™: €2.65 vs. price of €2.70 (1.9% above fair value)
Industry Position: 433.3% above the Furnishings, Fixtures & Appliances median
No single metric tells the full story. See the STU:GKE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hisense Home Appliances Group Co Business Description
Hisense Home Appliances Group Co Ltd is a manufacturer of white household electrical appliances in the People's Republic of China, with eight brand names, namely Hisense, Ronshen, KELON, HITACHI, YORK, Gorenje, ASKO, and SANDEN. The company produces refrigerators, air-conditioners, freezers, washing machines, and Kitchen electrical appliances. The businesses of the Company are set out as follows: HVAC Business Work; Refrigerator and Washing Machine Business Work; Automotive Air Conditioner Compressor and Integrated Thermal Management System Business Work; Smart Home Business Work; Overseas Markets for Home Appliances Business Work and Implementing the Manufacturing Work. The majority of the its revenue is generated from China.
93GF Score
Get the complete analysis for STU:GKE
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:GKE has been successfully added to your 
