Great Novel Therapeutics Biotech & Medicals (ROCO:7427) ROC %: -163.00% (As of Dec. 2025)


ROCO:7427 Great Novel Therapeutics Biotech & Medicals ROCO:7427
49 GF Score
Price NT$39.65
GF Value NT$25.57
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Great Novel Therapeutics Biotech & Medicals ROC %?

Great Novel Therapeutics Biotech & Medicals ROCO:7427 -1.25% 49 ROC % is -163.00% as of Dec. 2025. GuruFocus rates ROCO:7427 with a GF Score™ of 49/100 and a GF Value™ of NT$25.57 (Significantly Overvalued). The stock has 3 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Great Novel Therapeutics Biotech & Medicals's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -163.00%.

As of today (2026-06-30), Great Novel Therapeutics Biotech & Medicals's WACC % is 6.12%. Great Novel Therapeutics Biotech & Medicals's ROC % is -146.66% (calculated using TTM income statement data). Great Novel Therapeutics Biotech & Medicals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Great Novel Therapeutics Biotech & Medicals  (ROCO:7427) 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, Great Novel Therapeutics Biotech & Medicals's WACC % is 6.12%. Great Novel Therapeutics Biotech & Medicals's ROC % is -146.66% (calculated using TTM income statement data). Great Novel Therapeutics Biotech & Medicals 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.

Great Novel Therapeutics Biotech & Medicals ROC % Related Terms

Great Novel Therapeutics Biotech & Medicals ROC % Historical Data

* Premium members only.

The historical data trend for Great Novel Therapeutics Biotech & Medicals'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.

Great Novel Therapeutics Biotech & Medicals ROC % Chart

Great Novel Therapeutics Biotech & Medicals Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROC %
Get a 7-Day Free Trial -38.41 -46.22 -65.16 -153.63 -152.10

Great Novel Therapeutics Biotech & Medicals Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -47.36 -162.87 -129.32 -125.59 -163.00
ROCO:7427
49GF Score
Great Novel Therapeutics Biotech & Medicals ROCO:7427
ROC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Great Novel Therapeutics Biotech & Medicals ROC % Calculation

Great Novel Therapeutics Biotech & Medicals's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2025 is calculated as:

ROC % (A: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2024 ) + Invested Capital (A: Dec. 2025 ))/ count )
=-99.544 * ( 1 - 0% )/( (67.015 + 63.88)/ 2 )
=-99.544/65.4475
=-152.10 %

where

Invested Capital(A: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=662.6 - 18.711 - ( 582.758 - max(0, 21.823 - 598.697+582.758))
=67.015

Invested Capital(A: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=526.752 - 15.758 - ( 447.539 - max(0, 19.337 - 466.451+447.539))
=63.88

Great Novel Therapeutics Biotech & Medicals's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=-111.336 * ( 1 - 0% )/( (72.728 + 63.88)/ 2 )
=-111.336/68.304
=-163.00 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=587.173 - 13.872 - ( 500.573 - max(0, 17.336 - 525.549+500.573))
=72.728

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=526.752 - 15.758 - ( 447.539 - max(0, 19.337 - 466.451+447.539))
=63.88

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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -163.00% mean?
Great Novel Therapeutics Biotech & Medicals (ROCO:7427) has a ROC % of -163.00% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Great Novel Therapeutics Biotech & Medicals and its competitors.
Is Great Novel Therapeutics Biotech & Medicals' ROC % too high?
Great Novel Therapeutics Biotech & Medicals' current ROC % is -163.00%. Overall, Great Novel Therapeutics Biotech & Medicals has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Great Novel Therapeutics Biotech & Medicals' ROC % compare to VRTX and REGN?
Great Novel Therapeutics Biotech & Medicals' ROC % of -163.00% can be compared against companies in the Biotechnology industry. 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 Biotechnology company?
A good ROC % depends on the Biotechnology industry context. 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 Great Novel Therapeutics Biotech & Medicals and its competitors. Great Novel Therapeutics Biotech & Medicals's current ROC % is -163.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Great Novel Therapeutics Biotech & Medicals stock overvalued right now?
Based on GuruFocus' analysis, Great Novel Therapeutics Biotech & Medicals (ROCO:7427) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$25.57, compared to a current price of NT$39.65 — trading 55.1% above its estimated fair value. The current ROC % is -163.00%. Great Novel Therapeutics Biotech & Medicals' overall GF Score™ is 49/100 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 Great Novel Therapeutics Biotech & Medicals (ROCO:7427), the current ROC % is -163.00% 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 Great Novel Therapeutics Biotech & Medicals (ROCO:7427) Overvalued in 2026?

Based on GuruFocus' analysis, Great Novel Therapeutics Biotech & Medicals stock appears to be overvalued. The current stock price of NT$39.65 is trading 55.1% above its estimated GF Value™ of NT$25.57. GuruFocus considers Great Novel Therapeutics Biotech & Medicals to be Significantly Overvalued.

Key valuation signals for ROCO:7427:

  • ROC %: -163.00%
  • GF Value™: NT$25.57 vs. price of NT$39.65 (55.1% above fair value)
  • GF Score™: 49/100 with 3 warning signs

No single metric tells the full story. See the ROCO:7427 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Great Novel Therapeutics Biotech & Medicals Business Description

Address No.3, Park Street, Room WR-06, 17th Floor, Nangang District, Taipei, TWN, 11503
Great Novel Therapeutics Biotech & Medicals focuses on drug development to treat advanced cancer. The new drugs ranging from epigenetic modulators, a combination of tumor microenvironment-regulating agents, epigenetic immuno-modulators, to the protein degradation drugs targeting HDACs 1, 2, and 3, are in a developing pipeline. These drugs focus on the field of epigenetics, for the demand of clinical unmet needs in advanced and refractory cancers.
49GF Score

Get the complete analysis for ROCO:7427

ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$39.65
Price
NT$25.57
GF Value