ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Suzhou Novosense Microelectronics Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.15%.
As of today (2026-06-30), Suzhou Novosense Microelectronics Co's WACC % is 12.71%. Suzhou Novosense Microelectronics Co's ROC % is -1.51% (calculated using TTM income statement data).
Suzhou Novosense Microelectronics Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Suzhou Novosense Microelectronics Co (SHSE:688052) 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, Suzhou Novosense Microelectronics Co's WACC % is 12.71%. Suzhou Novosense Microelectronics Co's ROC % is -1.51% (calculated using TTM income statement data).
Suzhou Novosense Microelectronics 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.
Suzhou Novosense Microelectronics Co ROC % Related Terms
Suzhou Novosense Microelectronics 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) 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.
Suzhou Novosense Microelectronics Co (SHSE:688052) has a ROC % of 2.15% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Suzhou Novosense Microelectronics Co and its competitors.
Is Suzhou Novosense Microelectronics Co's ROC % too high?
Suzhou Novosense Microelectronics Co's current ROC % is 2.15%. The Semiconductors industry median ROC % is 3.74. Suzhou Novosense Microelectronics Co's value of 2.15% is 42.5% below this industry median. Overall, Suzhou Novosense Microelectronics Co has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Suzhou Novosense Microelectronics Co's ROC % compare to NVDA and AVGO?
Suzhou Novosense Microelectronics Co's ROC % of 2.15% can be compared against companies in the Semiconductors industry. The industry median ROC % is 3.74. Suzhou Novosense Microelectronics Co's value of 2.15% is 42.5% 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 a Semiconductors company?
The median ROC % among Semiconductors companies is 3.74, based on 1,010 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. Suzhou Novosense Microelectronics Co's current ROC % of 2.15% is 42.5% 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 Suzhou Novosense Microelectronics Co and its competitors. For the Semiconductors industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Suzhou Novosense Microelectronics Co's current ROC % is 2.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Suzhou Novosense Microelectronics Co stock overvalued right now?
Based on GuruFocus' analysis, Suzhou Novosense Microelectronics Co (SHSE:688052) is currently considered Fairly Valued. The stock's GF Value™ is ¥263.03, compared to a current price of ¥287.50 — trading 9.3% above its estimated fair value. The current ROC % is 2.15% and 42.5% below the Semiconductors industry median of 3.74. Suzhou Novosense Microelectronics Co's overall GF Score™ is 86/100 with 8 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 Suzhou Novosense Microelectronics Co (SHSE:688052), the current ROC % is 2.15% as of Mar. 2026. 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 Suzhou Novosense Microelectronics Co (SHSE:688052) Overvalued in 2026?
Based on GuruFocus' analysis, Suzhou Novosense Microelectronics Co stock appears to be overvalued.
The current stock price of ¥287.50 is trading 9.3% above its estimated GF Value™ of ¥263.03.
GuruFocus considers Suzhou Novosense Microelectronics Co to be Fairly Valued.
Key valuation signals for SHSE:688052:
ROC %: 2.15%
GF Value™: ¥263.03 vs. price of ¥287.50 (9.3% above fair value)
Industry Position: 42.5% below the Semiconductors median
No single metric tells the full story. See the SHSE:688052 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Suzhou Novosense Microelectronics Co Business Description
Suzhou Novosense Microelectronics Co Ltd operates as an analog chip provider in China. The company and its subsidiaries are principally engaged in design, research and development (R&D) of various types of chip products. Its three core product categories include - sensor products, signal chain chips and power management chips that cover (i) sensing, (ii) signal processing, and (iii) system power supply and power drive. The company serves application sectors such as automotive electronics, energy and industrial automation, and consumer electronics. The majority of the company's revenue is derived from the sale of Signal Chain Chips, followed by Power Management Chips, Sensor Products, and Others, mainly in the Chinese Mainland.
86GF Score
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