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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 %. Advanced Lithium Electrochemistry (KY) Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -80.87%.
Advanced Lithium Electrochemistry (KY) Co (ROCO:5227) 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, Advanced Lithium Electrochemistry (KY) Co's WACC % is 5.78%. Advanced Lithium Electrochemistry (KY) Co's ROC % is -11.30% (calculated using TTM income statement data).
Advanced Lithium Electrochemistry (KY) 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.
Advanced Lithium Electrochemistry (KY) Co ROC % Related Terms
Advanced Lithium Electrochemistry (KY) Co 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.
Advanced Lithium Electrochemistry (KY) Co ROC % Chart
Advanced Lithium Electrochemistry (KY) Co Annual Data
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.
Advanced Lithium Electrochemistry (KY) Co (ROCO:5227) has a ROC % of -80.87% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Advanced Lithium Electrochemistry (KY) Co and its competitors.
Is Advanced Lithium Electrochemistry (KY) Co's ROC % too high?
Advanced Lithium Electrochemistry (KY) Co's current ROC % is -80.87%. Overall, Advanced Lithium Electrochemistry (KY) Co has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Advanced Lithium Electrochemistry (KY) Co's ROC % compare to VRT and BE?
Advanced Lithium Electrochemistry (KY) Co's ROC % of -80.87% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.19. 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 5.19, based on 3,031 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 Advanced Lithium Electrochemistry (KY) Co and its competitors. For the Industrial Products industry, the median ROC % is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Lithium Electrochemistry (KY) Co's current ROC % is -80.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Lithium Electrochemistry (KY) Co stock overvalued right now?
Based on GuruFocus' analysis, Advanced Lithium Electrochemistry (KY) Co (ROCO:5227) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$18.19, compared to a current price of NT$31.20 — trading 71.5% above its estimated fair value. The current ROC % is -80.87%. Advanced Lithium Electrochemistry (KY) Co's overall GF Score™ is 58/100 with 3 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 Advanced Lithium Electrochemistry (KY) Co (ROCO:5227), the current ROC % is -80.87% 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 Advanced Lithium Electrochemistry (KY) Co (ROCO:5227) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Lithium Electrochemistry (KY) Co stock appears to be overvalued.
The current stock price of NT$31.20 is trading 71.5% above its estimated GF Value™ of NT$18.19.
GuruFocus considers Advanced Lithium Electrochemistry (KY) Co to be Significantly Overvalued.
Key valuation signals for ROCO:5227:
ROC %: -80.87%
GF Value™: NT$18.19 vs. price of NT$31.20 (71.5% above fair value)
No single metric tells the full story. See the ROCO:5227 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Lithium Electrochemistry (KY) Co Business Description
Advanced Lithium Electrochemistry (KY) Co Ltd is a Taiwan-based company. It is engaged in the research, manufacture, and sales of materials for Lithium Iron Phosphate Nano Co-crystalline Olivine (LFP-NCO)and key materials of Olivine-type structure lithium battery. The company has two segments: Battery Cathode Material and Licensing Engagement. Geographically, it operates in China, Europe, Taiwan, other Asian countries, and Others.
58GF Score
Get the complete analysis for ROCO:5227
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