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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Yonghe Medical Group Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 13.14%.
As of today (2026-08-21), Yonghe Medical Group Co's WACC % is 13.44%. Yonghe Medical Group Co's ROIC % is 10.80% (calculated using TTM income statement data).
Yonghe Medical Group Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Yonghe Medical Group Co (STU:L97) 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, Yonghe Medical Group Co's WACC % is 13.44%. Yonghe Medical Group Co's ROIC % is 10.80% (calculated using TTM income statement data).
Yonghe Medical Group 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.
* 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 Medical Care Facilities subindustry, Yonghe Medical 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.
Yonghe Medical Group Co ROIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Yonghe Medical Group Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Yonghe Medical Group Co's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Jun. 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.
Yonghe Medical Group Co (STU:L97) has a ROIC % of 13.14% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Yonghe Medical Group Co and its competitors.
Is Yonghe Medical Group Co's ROIC % too high?
Yonghe Medical Group Co's current ROIC % is 13.14%. The Healthcare Providers & Services industry median ROIC % is 3.25. Yonghe Medical Group Co's value of 13.14% is 304.3% above this industry median. Overall, Yonghe Medical Group Co has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Yonghe Medical Group Co's ROIC % compare to HCA and THC?
Yonghe Medical Group Co's ROIC % of 13.14% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.25. Yonghe Medical Group Co's value of 13.14% is 304.3% 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 Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.25, based on 671 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. Yonghe Medical Group Co's current ROIC % of 13.14% is 304.3% 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 Yonghe Medical Group Co and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yonghe Medical Group Co's current ROIC % is 13.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yonghe Medical Group Co stock overvalued right now?
Yonghe Medical Group Co (STU:L97) has a current ROIC % of 13.14%. The stock's GF Value™ is €0.20, compared to a current price of €0.25 — trading 26% above its estimated fair value. The current ROIC % is 13.14% and 304.3% above the Healthcare Providers & Services industry median of 3.25. Yonghe Medical Group Co's overall GF Score™ is 84/100 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 Yonghe Medical Group Co (STU:L97), the current ROIC % is 13.14% as of Jun. 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 Yonghe Medical Group Co (STU:L97) Overvalued in 2026?
Based on GuruFocus' analysis, Yonghe Medical Group Co stock appears to be overvalued.
The current stock price of €0.25 is trading 26% above its estimated GF Value™ of €0.20.
Key valuation signals for STU:L97:
ROIC %: 13.14%
GF Value™: €0.20 vs. price of €0.25 (26% above fair value)
Industry Position: 304.3% above the Healthcare Providers & Services median
No single metric tells the full story. See the STU:L97 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yonghe Medical Group Co Ltd is a medical group in China that specializes in providing hair-related healthcare services. The company is principally engaged in the provision of hair transplant services. The company generated the majority of its revenue from hair transplant services. The company offers one-stop hair-related healthcare services covering hair transplants, medical hair care, routine hair restoration, and other ancillary services.
84GF Score
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