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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.
Kangxin New Materials CoSHSE:600076 +1.97%47 WACC % is 12.27% as of Jul. 14, 2026, which is 44% above its 10-year median of 8.53. GuruFocus rates SHSE:600076 with a GF Score™ of 47/100 and a GF Value™ of ¥2.60 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 291 Forest Products companies, Kangxin New Materials Co ranks worse than 87.63% on this metric.
As of today (2026-07-14), Kangxin New Materials Co's weighted average cost of capital is 12.27%%. Kangxin New Materials Co's ROIC % is -2.48% (calculated using TTM income statement data).
Kangxin New Materials Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Kangxin New Materials Co (SHSE:600076) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % 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, Kangxin New Materials Co's weighted average cost of capital is 12.27%%. Kangxin New Materials Co's ROIC % is -2.48% (calculated using TTM income statement data).
Kangxin New Materials Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
* 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 Lumber & Wood Production subindustry, Kangxin New Materials Co's WACC %, along with its competitors' market caps and WACC % 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.
Kangxin New Materials Co WACC % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Kangxin New Materials Co's WACC % distribution charts can be found below:
* The bar in red indicates where Kangxin New Materials Co's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Kangxin New Materials Co's market capitalization (E) is ¥4168.084 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Kangxin New Materials Co's latest one-year quarterly average Book Value of Debt (D) is ¥1628.773 Mil.
a) weight of equity = E / (E + D) = 4168.084 / (4168.084 + 1628.773) = 0.719
b) weight of debt = D / (E + D) = 1628.773 / (4168.084 + 1628.773) = 0.281
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.585%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Kangxin New Materials Co's beta is 1.7543.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.585% + 1.7543 * 6% = 15.1108%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Kangxin New Materials Co's interest expense (positive number) was ¥81.74 Mil. Its total Book Value of Debt (D) is ¥1628.773 Mil.
Cost of Debt = 81.74 / 1628.773 = 5.0185%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0.906 / -390.112 = -0.23%, which is less than 0%. Therefore it's set to 0%.
* 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.
Kangxin New Materials Co (SHSE:600076) has a WACC % of 12.27% as of Jul. 14, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Kangxin New Materials Co and its competitors. This is 44% above median its historical median of 8.53. Over the past decade, Kangxin New Materials Co's WACC % has ranged from 5.21 to 12.74. According to the industry distribution chart, Kangxin New Materials Co ranks #255 out of 291 companies in the Forest Products industry, placing it in the top 87.6%.
Is Kangxin New Materials Co's WACC % too high?
Kangxin New Materials Co's current WACC % of 12.27% is 44% above median its 10-year median of 8.53. Over the past 10 years, this metric has ranged from a low of 5.21 to a high of 12.74. The Forest Products industry median WACC % is 7.23. Kangxin New Materials Co's value of 12.27% is 69.7% above this industry median. Based on the distribution chart, Kangxin New Materials Co ranks #255 out of 291 companies in the Forest Products industry, which is in the bottom quartile relative to peers. Overall, Kangxin New Materials Co has a GF Score™ of 47/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kangxin New Materials Co's WACC % compare to SSD and UFPI?
According to the Forest Products industry distribution chart, Kangxin New Materials Co ranks #255 out of 291 companies for WACC %. This places Kangxin New Materials Co in the lower half of its industry. The industry median WACC % is 7.23. Kangxin New Materials Co's value of 12.27% is 69.7% above this benchmark. Historically, Kangxin New Materials Co's own WACC % has ranged from 5.21 to 12.74 over the past decade. While the company's 10-year median is 8.53 vs. the industry median of 7.23, Kangxin New Materials Co 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 WACC % for a Forest Products company?
The median WACC % among Forest Products companies is 7.23, based on 291 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kangxin New Materials Co's current WACC % of 12.27% is 69.7% 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 WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Kangxin New Materials Co and its competitors. For the Forest Products industry, the median WACC % is 7.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kangxin New Materials Co's current WACC % is 12.27%, which is 44% above median its own 10-year median of 8.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kangxin New Materials Co stock overvalued right now?
Based on GuruFocus' analysis, Kangxin New Materials Co (SHSE:600076) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥2.60, compared to a current price of ¥3.10 — trading 19.2% above its estimated fair value. The current WACC % is 12.27%, which is 44% above median its 10-year median of 8.53 and 69.7% above the Forest Products industry median of 7.23. Kangxin New Materials Co's overall GF Score™ is 47/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Kangxin New Materials Co (SHSE:600076), the current WACC % is 12.27% as of Jul. 14, 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 Kangxin New Materials Co (SHSE:600076) Overvalued in 2026?
Based on GuruFocus' analysis, Kangxin New Materials Co stock appears to be overvalued.
The current stock price of ¥3.10 is trading 19.2% above its estimated GF Value™ of ¥2.60.
GuruFocus considers Kangxin New Materials Co to be Modestly Overvalued.
Key valuation signals for SHSE:600076:
WACC %: 12.27% (44% above median its 10-year median of 8.53)
GF Value™: ¥2.60 vs. price of ¥3.10 (19.2% above fair value)
Industry Position: 69.7% above the Forest Products median (#255 of 291)
No single metric tells the full story. See the SHSE:600076 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kangxin New Materials Co Ltd engages in the collection, afforestation, processing, and sale of timber products in China. It also designs and produces building structural materials; and produces wood structural housing products. The company's products include COSB composite, multi-layer solid wood, and bamboo and wood composite container flooring products; civil sheets comprise building templates, ordinary COSB boards, environmental protection boards, and COSB boards; and landscape and green seedlings.
47GF Score
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