ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Falcon Machine Tools Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -10.47%.
As of today (2026-07-01), Falcon Machine Tools Co's WACC % is 2.94%. Falcon Machine Tools Co's ROC % is -4.55% (calculated using TTM income statement data).
Falcon Machine Tools Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Falcon Machine Tools Co (ROCO:4513) 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, Falcon Machine Tools Co's WACC % is 2.94%. Falcon Machine Tools Co's ROC % is -4.55% (calculated using TTM income statement data).
Falcon Machine Tools 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.
Falcon Machine Tools Co (ROCO:4513) has a ROC % of -10.47% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Falcon Machine Tools Co and its competitors.
Is Falcon Machine Tools Co's ROC % too high?
Falcon Machine Tools Co's current ROC % is -10.47%. Overall, Falcon Machine Tools Co has a GF Score™ of 39/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Falcon Machine Tools Co's ROC % compare to GEV and ETN?
Falcon Machine Tools Co's ROC % of -10.47% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.21. 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 3,033 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 Falcon Machine Tools 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. Falcon Machine Tools Co's current ROC % is -10.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Falcon Machine Tools Co stock overvalued right now?
Based on GuruFocus' analysis, Falcon Machine Tools Co (ROCO:4513) is currently considered Fairly Valued. The stock's GF Value™ is NT$16.81, compared to a current price of NT$16.25 — trading 3.3% below its estimated fair value. The current ROC % is -10.47%. Falcon Machine Tools Co's overall GF Score™ is 39/100 with 7 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 Falcon Machine Tools Co (ROCO:4513), the current ROC % is -10.47% 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 Falcon Machine Tools Co (ROCO:4513) Overvalued in 2026?
Based on GuruFocus' analysis, Falcon Machine Tools Co stock appears to be undervalued.
The current stock price of NT$16.25 is trading 3.3% below its estimated GF Value™ of NT$16.81.
GuruFocus considers Falcon Machine Tools Co to be Fairly Valued.
Key valuation signals for ROCO:4513:
ROC %: -10.47%
GF Value™: NT$16.81 vs. price of NT$16.25 (3.3% below fair value)
No single metric tells the full story. See the ROCO:4513 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Falcon Machine Tools Co Ltd manufactures and sells grinding, milling, turning machines, and other products. Its products include grinders, lathes, millers, planers, drill presses, and saw machines among others. It is also engaged in manufacturing and trading computer accessories and electronic parts, and the development, leasing, and sale of residential housing and buildings. The company's reportable segments include Taiwan Falcon which generates key revenue, Chevalier Machinery, Inc., Mainland Region, and others. Geographically, the company derives its key revenue from America and the rest from Mainland China, Taiwan, Europe, and other regions.
39GF Score
Get the complete analysis for ROCO:4513
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ROCO:4513 has been successfully added to your 
