ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Cathay Consolidated's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 16.18%.
As of today (2026-06-30), Cathay Consolidated's WACC % is 6.35%. Cathay Consolidated's ROC % is 16.70% (calculated using TTM income statement data).
Cathay Consolidated 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.
Cathay Consolidated (TPE:1342) 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, Cathay Consolidated's WACC % is 6.35%. Cathay Consolidated's ROC % is 16.70% (calculated using TTM income statement data).
Cathay Consolidated 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.
Cathay Consolidated ROC % Related Terms
Cathay Consolidated ROC % Historical Data
* Premium members only.
The historical data trend for Cathay Consolidated'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 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.
Cathay Consolidated (TPE:1342) has a ROC % of 16.18% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Cathay Consolidated and its competitors.
Is Cathay Consolidated's ROC % too high?
Cathay Consolidated's current ROC % is 16.18%. The Manufacturing - Apparel & Accessories industry median ROC % is 2.91. Cathay Consolidated's value of 16.18% is 456% above this industry median. Overall, Cathay Consolidated has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cathay Consolidated's ROC % compare to competitors?
Cathay Consolidated's ROC % of 16.18% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROC % is 2.91. Cathay Consolidated's value of 16.18% is 456% above 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 Manufacturing - Apparel & Accessories company?
The median ROC % among Manufacturing - Apparel & Accessories companies is 2.91, based on 1,047 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. Cathay Consolidated's current ROC % of 16.18% is 456% above 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 Cathay Consolidated and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Consolidated's current ROC % is 16.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Consolidated stock overvalued right now?
Based on GuruFocus' analysis, Cathay Consolidated (TPE:1342) is currently considered Fairly Valued. The stock's GF Value™ is NT$114.39, compared to a current price of NT$112.50 — trading 1.7% below its estimated fair value. The current ROC % is 16.18% and 456% above the Manufacturing - Apparel & Accessories industry median of 2.91. Cathay Consolidated's overall GF Score™ is 95/100 with 7 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 Cathay Consolidated (TPE:1342), the current ROC % is 16.18% 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 Cathay Consolidated (TPE:1342) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Consolidated stock appears to be undervalued.
The current stock price of NT$112.50 is trading 1.7% below its estimated GF Value™ of NT$114.39.
GuruFocus considers Cathay Consolidated to be Fairly Valued.
Key valuation signals for TPE:1342:
ROC %: 16.18%
GF Value™: NT$114.39 vs. price of NT$112.50 (1.7% below fair value)
Industry Position: 456% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the TPE:1342 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Consolidated Inc is a Taiwan-based company engaged in the manufacturing of TPU film, air mattresses, covers, laminated fabrics, and bladders. Its revenue mainly comes from the production and sale of functional fabrics. It operates in Taiwan, Asia, the Americas, Others, and the majority of its revenue comes from Asia. The main product of the Company is TPU film, air mattress, cover, laminated fabrics and bladder. The company's products are used in Aviation, Marine, Medical, Outdoor, and Industrial.
95GF Score
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