Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Nanjing Aolian AE&EA Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was -6.08%.
As of today (2026-09-03), Nanjing Aolian AE&EA Co's WACC % is 13.22%. Nanjing Aolian AE&EA Co's ROIC % is -2.48% (calculated using TTM income statement data).
Nanjing Aolian AE&EA Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Nanjing Aolian AE&EA Co (SZSE:300585) 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, Nanjing Aolian AE&EA Co's WACC % is 13.22%. Nanjing Aolian AE&EA Co's ROIC % is -2.48% (calculated using TTM income statement data).
Nanjing Aolian AE&EA 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 Auto Parts subindustry, Nanjing Aolian AE&EA 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.
Nanjing Aolian AE&EA Co ROIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Nanjing Aolian AE&EA Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Nanjing Aolian AE&EA Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (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.
Nanjing Aolian AE&EA Co (SZSE:300585) has a ROIC % of -6.08% 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 Nanjing Aolian AE&EA Co and its competitors.
Is Nanjing Aolian AE&EA Co's ROIC % too high?
Nanjing Aolian AE&EA Co's current ROIC % is -6.08%. Overall, Nanjing Aolian AE&EA Co has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nanjing Aolian AE&EA Co's ROIC % compare to ORLY and AZO?
Nanjing Aolian AE&EA Co's ROIC % of -6.08% can be compared against companies in the Vehicles & Parts industry. The industry median ROIC % is 5.05. 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 Vehicles & Parts company?
The median ROIC % among Vehicles & Parts companies is 5.05, based on 1,319 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. 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 Nanjing Aolian AE&EA Co and its competitors. For the Vehicles & Parts industry, the median ROIC % is 5.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nanjing Aolian AE&EA Co's current ROIC % is -6.08%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nanjing Aolian AE&EA Co stock overvalued right now?
Based on GuruFocus' analysis, Nanjing Aolian AE&EA Co (SZSE:300585) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥14.53, compared to a current price of ¥16.08 — trading 10.7% above its estimated fair value. The current ROIC % is -6.08%. Nanjing Aolian AE&EA Co's overall GF Score™ is 73/100 with 2 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 Nanjing Aolian AE&EA Co (SZSE:300585), the current ROIC % is -6.08% 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 Nanjing Aolian AE&EA Co (SZSE:300585) Overvalued in 2026?
Based on GuruFocus' analysis, Nanjing Aolian AE&EA Co stock appears to be overvalued.
The current stock price of ¥16.08 is trading 10.7% above its estimated GF Value™ of ¥14.53.
GuruFocus considers Nanjing Aolian AE&EA Co to be Modestly Overvalued.
Key valuation signals for SZSE:300585:
ROIC %: -6.08%
GF Value™: ¥14.53 vs. price of ¥16.08 (10.7% above fair value)
No single metric tells the full story. See the SZSE:300585 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nanjing Aolian AE&EA Co Ltd engages in researching, developing, manufacturing, and marketing automobile electronics and electrical accessory products. The company's products mainly include electron accelerator pedals, gear shifting controllers, air conditioner controller for vehicles, low temperature starting devices, and electronic throttles, among others.
73GF Score
Get the complete analysis for SZSE:300585
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
SZSE:300585 has been successfully added to your 
