ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. United Alloy-Tech Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 1.86%.
As of today (2026-07-06), United Alloy-Tech Co's WACC % is 5.70%. United Alloy-Tech Co's ROC % is 3.60% (calculated using TTM income statement data).
United Alloy-Tech Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
United Alloy-Tech Co (ROCO:3162) 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, United Alloy-Tech Co's WACC % is 5.70%. United Alloy-Tech Co's ROC % is 3.60% (calculated using TTM income statement data).
United Alloy-Tech 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.
United Alloy-Tech Co (ROCO:3162) has a ROC % of 1.86% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on United Alloy-Tech Co and its competitors.
Is United Alloy-Tech Co's ROC % too high?
United Alloy-Tech Co's current ROC % is 1.86%. The Industrial Products industry median ROC % is 5.21. United Alloy-Tech Co's value of 1.86% is 64.3% below this industry median. Overall, United Alloy-Tech Co has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does United Alloy-Tech Co's ROC % compare to CRS and ATI?
United Alloy-Tech Co's ROC % of 1.86% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.21. United Alloy-Tech Co's value of 1.86% is 64.3% below 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 an Industrial Products company?
The median ROC % among Industrial Products companies is 5.21, based on 3,026 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. United Alloy-Tech Co's current ROC % of 1.86% is 64.3% below 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 United Alloy-Tech Co and its competitors. For the Industrial Products industry, the median ROC % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Alloy-Tech Co's current ROC % is 1.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Alloy-Tech Co stock overvalued right now?
Based on GuruFocus' analysis, United Alloy-Tech Co (ROCO:3162) is currently considered Fairly Valued. The stock's GF Value™ is NT$89.44, compared to a current price of NT$85.10 — trading 4.9% below its estimated fair value. The current ROC % is 1.86% and 64.3% below the Industrial Products industry median of 5.21. United Alloy-Tech Co's overall GF Score™ is 66/100 with 14 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 United Alloy-Tech Co (ROCO:3162), the current ROC % is 1.86% 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 United Alloy-Tech Co (ROCO:3162) Overvalued in 2026?
Based on GuruFocus' analysis, United Alloy-Tech Co stock appears to be undervalued.
The current stock price of NT$85.10 is trading 4.9% below its estimated GF Value™ of NT$89.44.
GuruFocus considers United Alloy-Tech Co to be Fairly Valued.
Key valuation signals for ROCO:3162:
ROC %: 1.86%
GF Value™: NT$89.44 vs. price of NT$85.10 (4.9% below fair value)
Industry Position: 64.3% below the Industrial Products median
No single metric tells the full story. See the ROCO:3162 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
United Alloy-Tech Co Ltd mainly engages in the forging of aluminum alloys, die-casting, the production and processing of molds, and the production and sales business of auto parts. The company has two segments: the Aluminum alloy materials division and the Foam tapes division. Its product pipeline includes Aluminum Alloy 2-7 series, Front Fork End and Crown, Dropout, Riching Dropout, Mountain Bike Dropout, Yoke, Motor Mount, Hanger, and others. Geographically, the company generates the majority of its revenue from China and the rest of Asia, and also has its presence in Taiwan, Europe, and the U.S.
66GF Score
Get the complete analysis for ROCO:3162
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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