ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Shenzhou International Group Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 17.34%.
As of today (2026-07-05), Shenzhou International Group Holdings's WACC % is 7.50%. Shenzhou International Group Holdings's ROIC % is 18.22% (calculated using TTM income statement data).
Shenzhou International Group Holdings 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.
Shenzhou International Group Holdings (STU:S6L) 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, Shenzhou International Group Holdings's WACC % is 7.50%. Shenzhou International Group Holdings's ROIC % is 18.22% (calculated using TTM income statement data).
Shenzhou International Group Holdings 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.
Shenzhou International Group Holdings ROIC % Related Terms
Shenzhou International Group 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.
Shenzhou International Group Holdings ROIC % Chart
Shenzhou International Group Holdings ROIC % Competitor Comparison
For the Textile Manufacturing subindustry, Shenzhou International Group 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.
Shenzhou International Group Holdings ROIC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Shenzhou International Group Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Shenzhou International Group 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.
Shenzhou International Group Holdings (STU:S6L) has a ROIC % of 17.34% 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 Shenzhou International Group Holdings and its competitors.
Is Shenzhou International Group Holdings' ROIC % too high?
Shenzhou International Group Holdings' current ROIC % is 17.34%. The Manufacturing - Apparel & Accessories industry median ROIC % is 2.91. Shenzhou International Group Holdings' value of 17.34% is 496.9% above this industry median. Overall, Shenzhou International Group Holdings has a GF Score™ of 88/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shenzhou International Group Holdings' ROIC % compare to competitors?
Shenzhou International Group Holdings' ROIC % of 17.34% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROIC % is 2.91. Shenzhou International Group Holdings' value of 17.34% is 496.9% 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 Manufacturing - Apparel & Accessories company?
The median ROIC % among Manufacturing - Apparel & Accessories companies is 2.91, based on 1,042 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. Shenzhou International Group Holdings's current ROIC % of 17.34% is 496.9% 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 Shenzhou International Group Holdings and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROIC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhou International Group Holdings's current ROIC % is 17.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhou International Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Shenzhou International Group Holdings (STU:S6L) is currently considered Significantly Undervalued. The stock's GF Value™ is €8.57, compared to a current price of €4.50 — trading 47.5% below its estimated fair value. The current ROIC % is 17.34% and 496.9% above the Manufacturing - Apparel & Accessories industry median of 2.91. Shenzhou International Group Holdings' overall GF Score™ is 88/100 with 1 warning sign 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 Shenzhou International Group Holdings (STU:S6L), the current ROIC % is 17.34% 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 Shenzhou International Group Holdings (STU:S6L) Overvalued in 2026?
Based on GuruFocus' analysis, Shenzhou International Group Holdings stock appears to be undervalued.
The current stock price of €4.50 is trading 47.5% below its estimated GF Value™ of €8.57.
GuruFocus considers Shenzhou International Group Holdings to be Significantly Undervalued.
Key valuation signals for STU:S6L:
ROIC %: 17.34%
GF Value™: €8.57 vs. price of €4.50 (47.5% below fair value)
Industry Position: 496.9% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the STU:S6L stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenzhou International Group Holdings Business Description
Shenzhou is the largest vertically integrated knitwear manufacturer in the world. The group mainly produces sportswear (69% of 2024 revenue), casual wear (25% of revenue), and lingerie (5% of revenue) for international clients such as Nike, Adidas, Puma, and Uniqlo. Mainland China is its largest market, accounting for 28% of sales in 2024. This is followed by Europe, US, and Japan. Shenzhou currently operates manufacturing plants in China, Cambodia, and Vietnam.
88GF Score
Get the complete analysis for STU:S6L
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:S6L has been successfully added to your 
