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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 %. St Shine Optical Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 5.51%.
As of today (2026-07-17), St Shine Optical Co's WACC % is 2.59%. St Shine Optical Co's ROC % is 9.66% (calculated using TTM income statement data).
St Shine Optical Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
St Shine Optical Co (ROCO:1565) 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, St Shine Optical Co's WACC % is 2.59%. St Shine Optical Co's ROC % is 9.66% (calculated using TTM income statement data).
St Shine Optical Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
St Shine Optical Co ROC % Related Terms
St Shine Optical Co ROC % Historical Data
* Premium members only.
The historical data trend for St Shine Optical Co's ROC % can be seen below:
* 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.
St Shine Optical Co (ROCO:1565) has a ROC % of 5.51% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on St Shine Optical Co and its competitors.
Is St Shine Optical Co's ROC % too high?
St Shine Optical Co's current ROC % is 5.51%. The Medical Devices & Instruments industry median ROC % is 1.28. St Shine Optical Co's value of 5.51% is 332.2% above this industry median. Overall, St Shine Optical Co has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does St Shine Optical Co's ROC % compare to ISRG and BDX?
St Shine Optical Co's ROC % of 5.51% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROC % is 1.28. St Shine Optical Co's value of 5.51% is 332.2% above this benchmark. 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 Medical Devices & Instruments company?
The median ROC % among Medical Devices & Instruments companies is 1.28, based on 848 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. St Shine Optical Co's current ROC % of 5.51% is 332.2% 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 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 St Shine Optical Co and its competitors. For the Medical Devices & Instruments industry, the median ROC % is 1.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. St Shine Optical Co's current ROC % is 5.51%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is St Shine Optical Co stock overvalued right now?
Based on GuruFocus' analysis, St Shine Optical Co (ROCO:1565) is currently considered Possible Value Trap. The stock's GF Value™ is NT$171.33, compared to a current price of NT$95.80 — trading 44.1% below its estimated fair value. The current ROC % is 5.51% and 332.2% above the Medical Devices & Instruments industry median of 1.28. St Shine Optical Co's overall GF Score™ is 67/100 with 4 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 St Shine Optical Co (ROCO:1565), the current ROC % is 5.51% 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.
Is St Shine Optical Co (ROCO:1565) Overvalued in 2026?
Based on GuruFocus' analysis, St Shine Optical Co stock appears to be undervalued.
The current stock price of NT$95.80 is trading 44.1% below its estimated GF Value™ of NT$171.33.
GuruFocus considers St Shine Optical Co to be Possible Value Trap.
Key valuation signals for ROCO:1565:
ROC %: 5.51%
GF Value™: NT$171.33 vs. price of NT$95.80 (44.1% below fair value)
Industry Position: 332.2% above the Medical Devices & Instruments median
No single metric tells the full story. See the ROCO:1565 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
St Shine Optical Co Ltd is engaged in the manufacturing and trading of contact lenses (soft and hard), optical lenses, and related products. Geographically, the company generates maximum of its revenue from Asia (excluding Taiwan), followed by Europe, Taiwan, and America.
67GF Score
Get the complete analysis for ROCO:1565
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