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5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Zhejiang He Chuan Technology's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was -18.37%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Zhejiang He Chuan Technology (SHSE:688320) 5-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.
Zhejiang He Chuan Technology 5-Year ROIIC % Related Terms
Zhejiang He Chuan Technology 5-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.
SHSE:688320 vs DELL, ANET, SNDK: 5-Year ROIIC % Comparison
For the Computer Hardware subindustry, Zhejiang He Chuan Technology's 5-Year ROIIC %, along with its competitors' market caps and 5-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.
Zhejiang He Chuan Technology 5-Year ROIIC % vs Hardware Industry
For the Hardware industry and Technology sector, Zhejiang He Chuan Technology's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Zhejiang He Chuan Technology's 5-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 5-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.
Zhejiang He Chuan Technology (SHSE:688320) has a 5-Year ROIIC % of -18.37 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Zhejiang He Chuan Technology and its competitors. According to the industry distribution chart, Zhejiang He Chuan Technology ranks #1799 out of 2270 companies in the Hardware industry, placing it in the top 79.3%.
Is Zhejiang He Chuan Technology's 5-Year ROIIC % too high?
Zhejiang He Chuan Technology's current 5-Year ROIIC % is -18.37. Based on the distribution chart, Zhejiang He Chuan Technology ranks #1799 out of 2270 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Zhejiang He Chuan Technology has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang He Chuan Technology's 5-Year ROIIC % compare to DELL and ANET?
According to the Hardware industry distribution chart, Zhejiang He Chuan Technology ranks #1799 out of 2270 companies for 5-Year ROIIC %. This places Zhejiang He Chuan Technology in the lower half of its industry. The industry median 5-Year ROIIC % is 3.38. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for a Hardware company?
The median 5-Year ROIIC % among Hardware companies is 3.38, based on 2,270 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Zhejiang He Chuan Technology and its competitors. For the Hardware industry, the median 5-Year ROIIC % is 3.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang He Chuan Technology's current 5-Year ROIIC % is -18.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang He Chuan Technology stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang He Chuan Technology (SHSE:688320) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥42.95, compared to a current price of ¥35.83 — trading 16.6% below its estimated fair value. The current 5-Year ROIIC % is -18.37. Zhejiang He Chuan Technology's overall GF Score™ is 76/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Zhejiang He Chuan Technology (SHSE:688320), the current 5-Year ROIIC % is -18.37 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 Zhejiang He Chuan Technology (SHSE:688320) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang He Chuan Technology stock appears to be undervalued.
The current stock price of ¥35.83 is trading 16.6% below its estimated GF Value™ of ¥42.95.
GuruFocus considers Zhejiang He Chuan Technology to be Modestly Undervalued.
Key valuation signals for SHSE:688320:
5-Year ROIIC %: -18.37
GF Value™: ¥42.95 vs. price of ¥35.83 (16.6% below fair value)
No single metric tells the full story. See the SHSE:688320 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang He Chuan Technology Corp Ltd is engaged in the research and development, production, sales and application integration of industrial automation products. The company provides information such as Programmable logic controllers (PLCs), Servo systems (servo drives and servo motors), Touch screens, frequency inverters, Control sensors and motion-control chips, CNC multi-axis controllers, robotic controllers, linear modules, and vision systems.
76GF Score
Get the complete analysis for SHSE:688320
5-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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