ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Scinopharm Taiwan's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 0.45%.
As of today (2026-06-27), Scinopharm Taiwan's WACC % is 4.35%. Scinopharm Taiwan's ROC % is 1.23% (calculated using TTM income statement data).
Scinopharm Taiwan earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Scinopharm Taiwan (TPE:1789) 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, Scinopharm Taiwan's WACC % is 4.35%. Scinopharm Taiwan's ROC % is 1.23% (calculated using TTM income statement data).
Scinopharm Taiwan 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.
Scinopharm Taiwan ROC % Related Terms
Scinopharm Taiwan ROC % Historical Data
* Premium members only.
The historical data trend for Scinopharm Taiwan'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.
Scinopharm Taiwan (TPE:1789) has a ROC % of 0.45% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Scinopharm Taiwan and its competitors.
Is Scinopharm Taiwan's ROC % too high?
Scinopharm Taiwan's current ROC % is 0.45%. The Drug Manufacturers industry median ROC % is 4.44. Scinopharm Taiwan's value of 0.45% is 89.9% below this industry median. Overall, Scinopharm Taiwan has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Scinopharm Taiwan's ROC % compare to ZTS?
Scinopharm Taiwan's ROC % of 0.45% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.44. Scinopharm Taiwan's value of 0.45% is 89.9% 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 Drug Manufacturers company?
The median ROC % among Drug Manufacturers companies is 4.44, based on 985 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. Scinopharm Taiwan's current ROC % of 0.45% is 89.9% 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 Scinopharm Taiwan and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Scinopharm Taiwan's current ROC % is 0.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Scinopharm Taiwan stock overvalued right now?
Based on GuruFocus' analysis, Scinopharm Taiwan (TPE:1789) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$27.02, compared to a current price of NT$20.00 — trading 26% below its estimated fair value. The current ROC % is 0.45% and 89.9% below the Drug Manufacturers industry median of 4.44. Scinopharm Taiwan's overall GF Score™ is 76/100 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 Scinopharm Taiwan (TPE:1789), the current ROC % is 0.45% 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 Scinopharm Taiwan (TPE:1789) Overvalued in 2026?
Based on GuruFocus' analysis, Scinopharm Taiwan stock appears to be undervalued.
The current stock price of NT$20.00 is trading 26% below its estimated GF Value™ of NT$27.02.
GuruFocus considers Scinopharm Taiwan to be Modestly Undervalued.
Key valuation signals for TPE:1789:
ROC %: 0.45%
GF Value™: NT$27.02 vs. price of NT$20.00 (26% below fair value)
Industry Position: 89.9% below the Drug Manufacturers median
No single metric tells the full story. See the TPE:1789 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Scinopharm Taiwan Ltd is mainly engaged in the manufacture of western medicines and other chemical materials, biological technology services, intellectual property rights, international trade, and the research, development, production, manufacture, and sales of Active Pharmaceutical Ingredients (API), albumin medicines, oligonucleotide medicines, peptide medicines, injections, and new small molecule drugs. The Company also provides related consulting and technical services and international trade for the above products. In addition, the Company sells chemical material reprocessed from material recycled from the Company's manufacturing process.
76GF Score
Get the complete analysis for TPE:1789
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TPE:1789 has been successfully added to your 
