ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. High Power Lighting's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 3.75%.
As of today (2026-06-29), High Power Lighting's WACC % is 5.40%. High Power Lighting's ROC % is 9.85% (calculated using TTM income statement data).
High Power Lighting 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.
High Power Lighting (ROCO:6559) 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, High Power Lighting's WACC % is 5.40%. High Power Lighting's ROC % is 9.85% (calculated using TTM income statement data).
High Power Lighting 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.
High Power Lighting ROC % Related Terms
High Power Lighting ROC % Historical Data
* Premium members only.
The historical data trend for High Power Lighting'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 two times the semi-annual (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.
High Power Lighting (ROCO:6559) has a ROC % of 3.75% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on High Power Lighting and its competitors.
Is High Power Lighting's ROC % too high?
High Power Lighting's current ROC % is 3.75%. The Industrial Products industry median ROC % is 5.21. High Power Lighting's value of 3.75% is 28% below this industry median. Overall, High Power Lighting has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does High Power Lighting's ROC % compare to VRT and BE?
High Power Lighting's ROC % of 3.75% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.21. High Power Lighting's value of 3.75% is 28% 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 3,033 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. High Power Lighting's current ROC % of 3.75% is 28% 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 High Power Lighting 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. High Power Lighting's current ROC % is 3.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is High Power Lighting stock overvalued right now?
Based on GuruFocus' analysis, High Power Lighting (ROCO:6559) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$13.11, compared to a current price of NT$18.40 — trading 40.4% above its estimated fair value. The current ROC % is 3.75% and 28% below the Industrial Products industry median of 5.21. High Power Lighting's overall GF Score™ is 52/100. 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 High Power Lighting (ROCO:6559), the current ROC % is 3.75% 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 High Power Lighting (ROCO:6559) Overvalued in 2026?
Based on GuruFocus' analysis, High Power Lighting stock appears to be overvalued.
The current stock price of NT$18.40 is trading 40.4% above its estimated GF Value™ of NT$13.11.
GuruFocus considers High Power Lighting to be Significantly Overvalued.
Key valuation signals for ROCO:6559:
ROC %: 3.75%
GF Value™: NT$13.11 vs. price of NT$18.40 (40.4% above fair value)
Industry Position: 28% below the Industrial Products median
No single metric tells the full story. See the ROCO:6559 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
High Power Lighting Corp is involved in packaging, manufacturing, and designing of LED products. The company offers LED Lighting, Specialty UV, and IR Lighting & Plant-Growth Lighting.
52GF Score
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