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The Return Trends At China Isotope & Radiation (HKG:1763) Look Promising

Simply Wall St · 4d ago

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So on that note, China Isotope & Radiation (HKG:1763) looks quite promising in regards to its trends of return on capital.

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Understanding Return On Capital Employed (ROCE)

If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for China Isotope & Radiation:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)

0.11 = CN¥1.1b ÷ (CN¥16b - CN¥5.4b) (Based on the trailing twelve months to June 2025).

Thus, China Isotope & Radiation has an ROCE of 11%. On its own, that's a standard return, however it's much better than the 7.7% generated by the Medical Equipment industry.

Check out our latest analysis for China Isotope & Radiation

roce
SEHK:1763 Return on Capital Employed January 5th 2026

While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you're interested in investigating China Isotope & Radiation's past further, check out this free graph covering China Isotope & Radiation's past earnings, revenue and cash flow.

The Trend Of ROCE

Investors would be pleased with what's happening at China Isotope & Radiation. The data shows that returns on capital have increased substantially over the last five years to 11%. The amount of capital employed has increased too, by 66%. So we're very much inspired by what we're seeing at China Isotope & Radiation thanks to its ability to profitably reinvest capital.

Our Take On China Isotope & Radiation's ROCE

A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what China Isotope & Radiation has. Since the stock has only returned 8.8% to shareholders over the last five years, the promising fundamentals may not be recognized yet by investors. So with that in mind, we think the stock deserves further research.

Before jumping to any conclusions though, we need to know what value we're getting for the current share price. That's where you can check out our FREE intrinsic value estimation for 1763 that compares the share price and estimated value.

While China Isotope & Radiation may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.