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China Xinhua Education GroupHKSE:02779 60 3-Year ROIIC % is 15.75 as of Dec. 2025, which is 166% above its 10-year median of 5.93. GuruFocus rates HKSE:02779 with a GF Score™ of 60/100 and a GF Value™ of HK$0.68 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 242 Education companies, China Xinhua Education Group ranks better than 64.46% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
China Xinhua Education Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 15.75%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
China Xinhua Education Group (HKSE:02779) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
China Xinhua Education Group 3-Year ROIIC % Related Terms
China Xinhua Education Group 3-Year ROIIC % 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.
HKSE:02779 vs EDU, TAL, LAUR: 3-Year ROIIC % Comparison
For the Education & Training Services subindustry, China Xinhua Education Group's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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.
China Xinhua Education Group 3-Year ROIIC % vs Education Industry
For the Education industry and Consumer Defensive sector, China Xinhua Education Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where China Xinhua Education Group's 3-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
China Xinhua Education Group (HKSE:02779) has a 3-Year ROIIC % of 15.75 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on China Xinhua Education Group and its competitors. This is 166% above median its historical median of 5.93. According to the industry distribution chart, China Xinhua Education Group ranks #86 out of 242 companies in the Education industry, placing it in the top 35.5%.
Is China Xinhua Education Group's 3-Year ROIIC % too high?
China Xinhua Education Group's current 3-Year ROIIC % of 15.75 is 166% above median its 10-year median of 5.93. The Education industry median 3-Year ROIIC % is 3.76. China Xinhua Education Group's value of 15.75 is 319.4% above this industry median. Based on the distribution chart, China Xinhua Education Group ranks #86 out of 242 companies in the Education industry, which is above the industry midpoint. Overall, China Xinhua Education Group has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Xinhua Education Group's 3-Year ROIIC % compare to EDU and TAL?
According to the Education industry distribution chart, China Xinhua Education Group ranks #86 out of 242 companies for 3-Year ROIIC %. This puts China Xinhua Education Group in the upper half of its industry. The industry median 3-Year ROIIC % is 3.76. China Xinhua Education Group's value of 15.75 is 319.4% above this benchmark. While the company's 10-year median is 5.93 vs. the industry median of 3.76, China Xinhua Education Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for an Education company?
The median 3-Year ROIIC % among Education companies is 3.76, based on 242 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Xinhua Education Group's current 3-Year ROIIC % of 15.75 is 319.4% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on China Xinhua Education Group and its competitors. For the Education industry, the median 3-Year ROIIC % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Xinhua Education Group's current 3-Year ROIIC % is 15.75, which is 166% above median its own 10-year median of 5.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Xinhua Education Group stock overvalued right now?
Based on GuruFocus' analysis, China Xinhua Education Group (HKSE:02779) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.68, compared to a current price of HK$0.34 — trading 50% below its estimated fair value. The current 3-Year ROIIC % is 15.75, which is 166% above median its 10-year median of 5.93 and 319.4% above the Education industry median of 3.76. China Xinhua Education Group's overall GF Score™ is 60/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For China Xinhua Education Group (HKSE:02779), the current 3-Year ROIIC % is 15.75 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 China Xinhua Education Group (HKSE:02779) Overvalued in 2026?
Based on GuruFocus' analysis, China Xinhua Education Group stock appears to be undervalued.
The current stock price of HK$0.34 is trading 50% below its estimated GF Value™ of HK$0.68.
GuruFocus considers China Xinhua Education Group to be Possible Value Trap.
Key valuation signals for HKSE:02779:
3-Year ROIIC %: 15.75 (166% above median its 10-year median of 5.93)
GF Value™: HK$0.68 vs. price of HK$0.34 (50% below fair value)
Industry Position: 319.4% above the Education median (#86 of 242)
No single metric tells the full story. See the HKSE:02779 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Xinhua Education Group Ltd is principally engaged in the provision of education services in China. It mainly provides private formal higher education and formal secondary vocational education in the Yangtze River Delta. It currently operates four private schools, namely Anhui Xinhua University, School of Clinical Medicine jointly operated by the Group and Anhui Medical University, Hongshan College, a college jointly operated by the Group and Nanjing University of Finance & Economics Hongshan College, and Anhui Xinhua School. The company generates revenues from tuition fees, and boarding fees out of which tuition fees contribute the majority part.
60GF Score
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