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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
The industry rank for Chung Hwa Food Industrial Co's Net-Net Working Capital or its related term are showing as below:
ROCO:4205's Price-to-Net-Net-Working-Capital is ranked worse than 51.15% of 655
companies
in the Consumer Packaged Goods industry
Industry Median: 6.83
vs ROCO:4205: 6.99
Chung Hwa Food Industrial Co (ROCO:4205) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Chung Hwa Food Industrial Co Net-Net Working Capital Related Terms
Chung Hwa Food Industrial Co Net-Net Working Capital 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.
Chung Hwa Food Industrial Co Net-Net Working Capital Chart
ROCO:4205 vs KHC, GIS: Net-Net Working Capital Comparison
For the Packaged Foods subindustry, Chung Hwa Food Industrial Co's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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.
Chung Hwa Food Industrial Co Price-to-Net-Net-Working-Capital vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Chung Hwa Food Industrial Co's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Chung Hwa Food Industrial Co's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of NT$9.91 mean?
Chung Hwa Food Industrial Co (ROCO:4205) has a Net-Net Working Capital of NT$9.91 as of Jun. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Chung Hwa Food Industrial Co According to the industry distribution chart, Chung Hwa Food Industrial Co ranks #335 out of 655 companies in the Consumer Packaged Goods industry, placing it in the top 51.1%.
Is Chung Hwa Food Industrial Co's Net-Net Working Capital too high?
Chung Hwa Food Industrial Co's current Net-Net Working Capital is NT$9.91. Based on the distribution chart, Chung Hwa Food Industrial Co ranks #335 out of 655 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Chung Hwa Food Industrial Co has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chung Hwa Food Industrial Co's Net-Net Working Capital compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Chung Hwa Food Industrial Co ranks #335 out of 655 companies for Net-Net Working Capital. This places Chung Hwa Food Industrial Co in the lower half of its industry. The industry median Net-Net Working Capital is 6.83. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Consumer Packaged Goods company?
The median Net-Net Working Capital among Consumer Packaged Goods companies is 6.83, based on 655 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Chung Hwa Food Industrial Co For the Consumer Packaged Goods industry, the median Net-Net Working Capital is 6.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chung Hwa Food Industrial Co's current Net-Net Working Capital is NT$9.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chung Hwa Food Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Chung Hwa Food Industrial Co (ROCO:4205) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$87.90, compared to a current price of NT$69.30 — trading 21.2% below its estimated fair value. The current Net-Net Working Capital is NT$9.91. Chung Hwa Food Industrial Co's overall GF Score™ is 91/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Chung Hwa Food Industrial Co (ROCO:4205), the current Net-Net Working Capital is NT$9.91 as of Jun. 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 Chung Hwa Food Industrial Co (ROCO:4205) Overvalued in 2026?
Based on GuruFocus' analysis, Chung Hwa Food Industrial Co stock appears to be undervalued.
The current stock price of NT$69.30 is trading 21.2% below its estimated GF Value™ of NT$87.90.
GuruFocus considers Chung Hwa Food Industrial Co to be Modestly Undervalued.
Key valuation signals for ROCO:4205:
Net-Net Working Capital: NT$9.91
GF Value™: NT$87.90 vs. price of NT$69.30 (21.2% below fair value)
No single metric tells the full story. See the ROCO:4205 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chung Hwa Food Industrial Co Ltd is a manufacturing, processing, and trading of various soy products (tofu, tofu pudding, dried tofu, and soy milk), fruit juice, canned food, and oil products; export of said products; the agency for bidding for and distribution of said products from domestic and foreign manufacturers.
91GF Score
Get the complete analysis for ROCO:4205
Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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