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 Fiber Optic Communication's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -0.63%.
As of today (2026-06-29), United Fiber Optic Communication's WACC % is 4.37%. United Fiber Optic Communication's ROC % is 5.23% (calculated using TTM income statement data).
United Fiber Optic Communication 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.
United Fiber Optic Communication (ROCO:4903) 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 Fiber Optic Communication's WACC % is 4.37%. United Fiber Optic Communication's ROC % is 5.23% (calculated using TTM income statement data).
United Fiber Optic Communication 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.
United Fiber Optic Communication ROC % Related Terms
United Fiber Optic Communication ROC % Historical Data
* 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 Fiber Optic Communication (ROCO:4903) has a ROC % of -0.63% 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 Fiber Optic Communication and its competitors.
Is United Fiber Optic Communication's ROC % too high?
United Fiber Optic Communication's current ROC % is -0.63%. Overall, United Fiber Optic Communication has a GF Score™ of 55/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does United Fiber Optic Communication's ROC % compare to CSCO and CIEN?
United Fiber Optic Communication's ROC % of -0.63% can be compared against companies in the Hardware industry. The industry median ROC % is 4.09. 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 Hardware company?
The median ROC % among Hardware companies is 4.09, based on 2,448 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 United Fiber Optic Communication and its competitors. For the Hardware industry, the median ROC % is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Fiber Optic Communication's current ROC % is -0.63%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Fiber Optic Communication stock overvalued right now?
Based on GuruFocus' analysis, United Fiber Optic Communication (ROCO:4903) is currently considered Fairly Valued. The stock's GF Value™ is NT$39.58, compared to a current price of NT$39.20 — trading 1% below its estimated fair value. The current ROC % is -0.63%. United Fiber Optic Communication's overall GF Score™ is 55/100 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 United Fiber Optic Communication (ROCO:4903), the current ROC % is -0.63% 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 Fiber Optic Communication (ROCO:4903) Overvalued in 2026?
Based on GuruFocus' analysis, United Fiber Optic Communication stock appears to be undervalued.
The current stock price of NT$39.20 is trading 1% below its estimated GF Value™ of NT$39.58.
GuruFocus considers United Fiber Optic Communication to be Fairly Valued.
Key valuation signals for ROCO:4903:
ROC %: -0.63%
GF Value™: NT$39.58 vs. price of NT$39.20 (1% below fair value)
No single metric tells the full story. See the ROCO:4903 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
United Fiber Optic Communication Business Description
United Fiber Optic Communication Inc manufactures and distributes optical fiber cables and transmission equipment. The company mainly engages in exporting and importing products as well as providing services regarding fiber optic cables, related materials and accessories, transmission equipment, dense wavelength division multiplex (DWDM), repeaters, panels and boxes, and preforms, related communications equipment and network workstation systems, FDDI network equipment, optical Cable TV transmitters and receivers, FM PSK multi-band video transmission series, broadband data transmission, and network management systems.
55GF Score
Get the complete analysis for ROCO:4903
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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