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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 %. Center Laboratories's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -0.15%.
As of today (2026-07-21), Center Laboratories's WACC % is 5.75%. Center Laboratories's ROC % is -1.04% (calculated using TTM income statement data).
Center Laboratories earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Center Laboratories (ROCO:4123) 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, Center Laboratories's WACC % is 5.75%. Center Laboratories's ROC % is -1.04% (calculated using TTM income statement data).
Center Laboratories 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.
Center Laboratories ROC % Related Terms
Center Laboratories ROC % Historical Data
* Premium members only.
The historical data trend for Center Laboratories'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 (Mar. 2026) 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.
Center Laboratories (ROCO:4123) has a ROC % of -0.15% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Center Laboratories and its competitors.
Is Center Laboratories' ROC % too high?
Center Laboratories' current ROC % is -0.15%. Overall, Center Laboratories has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Center Laboratories' ROC % compare to ZTS and UTHR?
Center Laboratories' ROC % of -0.15% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.46. 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 Drug Manufacturers company?
The median ROC % among Drug Manufacturers companies is 4.46, based on 988 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 Center Laboratories and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Center Laboratories's current ROC % is -0.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Center Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Center Laboratories (ROCO:4123) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$43.04, compared to a current price of NT$37.50 — trading 12.9% below its estimated fair value. The current ROC % is -0.15%. Center Laboratories' overall GF Score™ is 69/100 with 6 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 Center Laboratories (ROCO:4123), the current ROC % is -0.15% as of Mar. 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 Center Laboratories (ROCO:4123) Overvalued in 2026?
Based on GuruFocus' analysis, Center Laboratories stock appears to be undervalued.
The current stock price of NT$37.50 is trading 12.9% below its estimated GF Value™ of NT$43.04.
GuruFocus considers Center Laboratories to be Modestly Undervalued.
Key valuation signals for ROCO:4123:
ROC %: -0.15%
GF Value™: NT$43.04 vs. price of NT$37.50 (12.9% below fair value)
No single metric tells the full story. See the ROCO:4123 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Center Laboratories Inc is engaged in the manufacture and sale of various Western pharmaceuticals, including Western medicine manufacturing, wholesale, and retail. The Company operates through the following segments: Pharmaceutical Division, Biotechnology Venture Capital, and Glac Segment. The Pharmaceutical Division, which generates the majority of revenue, manufactures and sells various Western pharmaceuticals. The Biotechnology Venture Capital segment invests in domestic and foreign biotechnology undertakings, while the Glac Segment manufactures and sells probiotic products. The Company operates in Taiwan, Mainland China, and other regions, with Taiwan generating the majority of revenue.
69GF Score
Get the complete analysis for ROCO:4123
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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