ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Yadea Group Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 14.83%.
As of today (2026-06-26), Yadea Group Holdings's WACC % is 9.63%. Yadea Group Holdings's ROIC % is 19.30% (calculated using TTM income statement data).
Yadea 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.
Yadea Group Holdings (OTCPK:YADGF) 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, Yadea Group Holdings's WACC % is 9.63%. Yadea Group Holdings's ROIC % is 19.30% (calculated using TTM income statement data).
Yadea 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.
* 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 Manufacturers subindustry, Yadea 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.
Yadea Group Holdings ROIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Yadea Group Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Yadea 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.
Yadea Group Holdings (YADGF) has a ROIC % of 14.83% 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 Yadea Group Holdings and its competitors.
Is Yadea Group Holdings' ROIC % too high?
Yadea Group Holdings' current ROIC % is 14.83%. The Vehicles & Parts industry median ROIC % is 5.07. Yadea Group Holdings' value of 14.83% is 192.5% above this industry median. Overall, Yadea Group Holdings has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Yadea Group Holdings' ROIC % compare to TSLA and GM?
Yadea Group Holdings' ROIC % of 14.83% can be compared against companies in the Vehicles & Parts industry. The industry median ROIC % is 5.07. Yadea Group Holdings' value of 14.83% is 192.5% 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 Vehicles & Parts company?
The median ROIC % among Vehicles & Parts companies is 5.07, based on 1,316 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. Yadea Group Holdings's current ROIC % of 14.83% is 192.5% 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 Yadea Group Holdings and its competitors. For the Vehicles & Parts industry, the median ROIC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yadea Group Holdings's current ROIC % is 14.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yadea Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Yadea Group Holdings (YADGF) is currently considered Significantly Undervalued. The stock's GF Value™ is $1.85, compared to a current price of $0.86 — trading 53.5% below its estimated fair value. The current ROIC % is 14.83% and 192.5% above the Vehicles & Parts industry median of 5.07. Yadea Group Holdings' overall GF Score™ is 80/100 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 Yadea Group Holdings (YADGF), the current ROIC % is 14.83% 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 Yadea Group Holdings (YADGF) Overvalued in 2026?
Based on GuruFocus' analysis, Yadea Group Holdings stock appears to be undervalued.
The current stock price of $0.86 is trading 53.5% below its estimated GF Value™ of $1.85.
GuruFocus considers Yadea Group Holdings to be Significantly Undervalued.
Key valuation signals for YADGF:
ROIC %: 14.83%
GF Value™: $1.85 vs. price of $0.86 (53.5% below fair value)
Industry Position: 192.5% above the Vehicles & Parts median
No single metric tells the full story. See the YADGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yadea Group Holdings Ltd is an investment holding company. The company and its subsidiaries manufacture and sale of electric vehicles, batteries, and related accessories in the People's Republic of China. It is focused on designing, researching, developing, manufacturing, and selling electric scooters, electric bicycles, batteries and chargers, and related accessories. The company has two reporting segments. The Electric two-wheeled vehicles and related accessories segment is mainly engaged in the development, manufacture, and sales of electric two-wheeled vehicles and related accessories, and the Batteries segment is mainly engaged in the production and sales of batteries of the newly acquired Huayu. Geographically, the company generates almost all of its revenue from the PRC region.
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