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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Epiworld International Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -1.11%.
As of today (2026-09-07), Epiworld International Co's WACC % is 10.62%. Epiworld International Co's ROC % is -0.28% (calculated using TTM income statement data).
Epiworld International Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Epiworld International Co (FRA:O5L) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment 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, Epiworld International Co's WACC % is 10.62%. Epiworld International Co's ROC % is -0.28% (calculated using TTM income statement data).
Epiworld International Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* 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.
Note:
The Operating Income data used here is four times the quarterly (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* 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.
Epiworld International Co (FRA:O5L) has a ROC % of -1.11% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Epiworld International Co and its competitors.
Is Epiworld International Co's ROC % too high?
Epiworld International Co's current ROC % is -1.11%. Overall, Epiworld International Co has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does Epiworld International Co's ROC % compare to NVDA and AVGO?
Epiworld International Co's ROC % of -1.11% can be compared against companies in the Semiconductors industry. The industry median ROC % is 4.49. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Semiconductors company?
The median ROC % among Semiconductors companies is 4.49, based on 1,022 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Epiworld International Co and its competitors. For the Semiconductors industry, the median ROC % is 4.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Epiworld International Co's current ROC % is -1.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Epiworld International Co stock overvalued right now?
Epiworld International Co (FRA:O5L) has a current ROC % of -1.11%. The current ROC % is -1.11%. Epiworld International Co's overall GF Score™ is 25/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Epiworld International Co (FRA:O5L), the current ROC % is -1.11% 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.
Epiworld International Co Ltd is principally engaged in the manufacturing and sale of SiC epitaxial wafers under Turnkey service and provision of processing services for SiC epitaxial wafers under Consign service in the PRC. It provides commercially available 3-inch, 4-inch, 6-inch, and 8-inch silicon carbide epitaxial wafers. The majority of the company's revenue is generated from the manufacturing and sale of silicon carbide epitaxial wafers in Asia - Greater China.
25GF Score
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