Jiangxi Hongcheng Environment Co (SHSE:600461) 3-Year ROIIC % : 3.25% (As of Dec. 2025) — 57% Below Median

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SHSE:600461 Jiangxi Hongcheng Environment Co Ltd SHSE:600461
72 GF Score
Price ¥9.28
GF Value ¥8.25
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Jiangxi Hongcheng Environment Co 3-Year ROIIC %?

Jiangxi Hongcheng Environment Co SHSE:600461 -0.32% 72 3-Year ROIIC % is 3.25 as of Dec. 2025, which is 57% below its 10-year median of 7.48. GuruFocus rates SHSE:600461 with a GF Score™ of 72/100 and a GF Value™ of ¥8.25 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 476 Utilities - Regulated companies, Jiangxi Hongcheng Environment Co ranks worse than 52.73% 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. Jiangxi Hongcheng Environment Co's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 3.25%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Jiangxi Hongcheng Environment Co's 3-Year ROIIC % or its related term are showing as below:

SHSE:600461's 3-Year ROIIC % is ranked worse than
52.73% of 476 companies
in the Utilities - Regulated industry
Industry Median: 3.71 vs SHSE:600461: 3.25

Jiangxi Hongcheng Environment Co  (SHSE:600461) 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.


Jiangxi Hongcheng Environment Co 3-Year ROIIC % Related Terms


Jiangxi Hongcheng Environment Co 3-Year ROIIC % Historical Data

* Premium members only.

The historical data trend for Jiangxi Hongcheng Environment Co's 3-Year ROIIC % can be seen below:

* 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.

Jiangxi Hongcheng Environment Co 3-Year ROIIC % Chart

Jiangxi Hongcheng Environment Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.83 8.03 7.94 7.02 3.25

Jiangxi Hongcheng Environment Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
3-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 3.25 0.00

SHSE:600461 vs AWK, WTRG, AWR: 3-Year ROIIC % Comparison

For the Utilities - Regulated Water subindustry, Jiangxi Hongcheng Environment Co'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.


Jiangxi Hongcheng Environment Co 3-Year ROIIC % vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Jiangxi Hongcheng Environment Co's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Jiangxi Hongcheng Environment Co's 3-Year ROIIC % falls into.


SHSE:600461
72GF Score
Jiangxi Hongcheng Environment Co Ltd SHSE:600461
3-Year ROIIC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Jiangxi Hongcheng Environment Co 3-Year ROIIC % Calculation

Jiangxi Hongcheng Environment Co's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 1492.801932 (Dec. 2025) - 1349.87399 (Dec. 2022) )/( 23310.303 (Dec. 2025) - 18913.869 (Dec. 2022) )
=142.927942/4396.434
=3.25%***

* 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.

Frequently Asked Questions Learn more about 3-Year ROIIC % →
What does a 3-Year ROIIC % of 3.25 mean?
Jiangxi Hongcheng Environment Co (SHSE:600461) has a 3-Year ROIIC % of 3.25 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 Jiangxi Hongcheng Environment Co and its competitors. This is 57% below median its historical median of 7.48. Over the past decade, Jiangxi Hongcheng Environment Co's 3-Year ROIIC % has ranged from 3.02 to 11.26. According to the industry distribution chart, Jiangxi Hongcheng Environment Co ranks #251 out of 476 companies in the Utilities - Regulated industry, placing it in the top 52.7%.
Is Jiangxi Hongcheng Environment Co's 3-Year ROIIC % too high?
Jiangxi Hongcheng Environment Co's current 3-Year ROIIC % of 3.25 is 57% below median its 10-year median of 7.48. Over the past 10 years, this metric has ranged from a low of 3.02 to a high of 11.26. The Utilities - Regulated industry median 3-Year ROIIC % is 3.71. Jiangxi Hongcheng Environment Co's value of 3.25 is 12.4% below this industry median. Based on the distribution chart, Jiangxi Hongcheng Environment Co ranks #251 out of 476 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Jiangxi Hongcheng Environment Co has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangxi Hongcheng Environment Co's 3-Year ROIIC % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Jiangxi Hongcheng Environment Co ranks #251 out of 476 companies for 3-Year ROIIC %. This places Jiangxi Hongcheng Environment Co in the lower half of its industry. The industry median 3-Year ROIIC % is 3.71. Jiangxi Hongcheng Environment Co's value of 3.25 is 12.4% below this benchmark. Historically, Jiangxi Hongcheng Environment Co's own 3-Year ROIIC % has ranged from 3.02 to 11.26 over the past decade. While the company's 10-year median is 7.48 vs. the industry median of 3.71, Jiangxi Hongcheng Environment Co has consistently been below 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 Utilities - Regulated company?
The median 3-Year ROIIC % among Utilities - Regulated companies is 3.71, based on 476 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. Jiangxi Hongcheng Environment Co's current 3-Year ROIIC % of 3.25 is 12.4% below 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 Jiangxi Hongcheng Environment Co and its competitors. For the Utilities - Regulated industry, the median 3-Year ROIIC % is 3.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangxi Hongcheng Environment Co's current 3-Year ROIIC % is 3.25, which is 57% below median its own 10-year median of 7.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangxi Hongcheng Environment Co stock overvalued right now?
Based on GuruFocus' analysis, Jiangxi Hongcheng Environment Co (SHSE:600461) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥8.25, compared to a current price of ¥9.28 — trading 12.5% above its estimated fair value. The current 3-Year ROIIC % is 3.25, which is 57% below median its 10-year median of 7.48 and 12.4% below the Utilities - Regulated industry median of 3.71. Jiangxi Hongcheng Environment Co's overall GF Score™ is 72/100 with 5 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 Jiangxi Hongcheng Environment Co (SHSE:600461), the current 3-Year ROIIC % is 3.25 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 Jiangxi Hongcheng Environment Co (SHSE:600461) Overvalued in 2026?

Based on GuruFocus' analysis, Jiangxi Hongcheng Environment Co stock appears to be overvalued. The current stock price of ¥9.28 is trading 12.5% above its estimated GF Value™ of ¥8.25. GuruFocus considers Jiangxi Hongcheng Environment Co to be Modestly Overvalued.

Key valuation signals for SHSE:600461:

  • 3-Year ROIIC %: 3.25 (57% below median its 10-year median of 7.48)
  • GF Value™: ¥8.25 vs. price of ¥9.28 (12.5% above fair value)
  • GF Score™: 72/100 with 5 warning signs
  • Industry Position: 12.4% below the Utilities - Regulated median (#251 of 476)

No single metric tells the full story. See the SHSE:600461 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Jiangxi Hongcheng Environment Co Business Description

Address No. 98 Guanyin Road, Nanchang, Jiangxi, CHN, 330001
Jiangxi Hongcheng Environment Co Ltd is a China-based engaged in the production and operation of water and wastewater treatment. The company is mainly engaged in tap water production and supply, sewage treatment, gas energy and other businesses.
72GF Score

Get the complete analysis for SHSE:600461

3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥9.28
Price
¥8.25
GF Value