Smart Powerr Corp.’s ROIC was -1.58% against a 6.22% WACC in the latest period, indicating value destruction on every dollar invested. Euro Tech Holdings led peers with a ROIC/WACC ratio of -0.14, while Recon Technology and SemiLEDs suffered deeper capital efficiency losses.
Smart Powerr Corp. focuses on waste energy recovery projects in China but currently reports a ROIC of -1.58% compared to a WACC of 6.22%, meaning each dollar of invested capital destroys value rather than generates returns. This gap signals that financing costs far exceed operational profitability.
Within the same sector, Euro Tech Holdings shows the strongest performance with a ROIC of -1.19% and ROIC/WACC ratio of -0.14, while Recon Technology posts a ratio of -1.16 and SemiLEDs suffers the lowest ratio of -5.66. These figures highlight industry-wide challenges in overcoming capital costs.
Continued negative capital efficiency is likely to pressure Smart Powerr’s valuation multiples and could lead to heightened scrutiny of its project selection and cost management strategies. Management may need to optimize project portfolios or adjust financing to align ROIC above WACC.
