ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Chung Hwa Pulp's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -2.50%.
As of today (2026-06-27), Chung Hwa Pulp's WACC % is 3.98%. Chung Hwa Pulp's ROC % is -3.67% (calculated using TTM income statement data).
Chung Hwa Pulp earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Chung Hwa Pulp (TPE:1905) 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, Chung Hwa Pulp's WACC % is 3.98%. Chung Hwa Pulp's ROC % is -3.67% (calculated using TTM income statement data).
Chung Hwa Pulp 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.
Chung Hwa Pulp ROC % Related Terms
Chung Hwa Pulp ROC % Historical Data
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The historical data trend for Chung Hwa Pulp'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.
Chung Hwa Pulp (TPE:1905) has a ROC % of -2.50% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Chung Hwa Pulp and its competitors.
Is Chung Hwa Pulp's ROC % too high?
Chung Hwa Pulp's current ROC % is -2.50%. Overall, Chung Hwa Pulp has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chung Hwa Pulp's ROC % compare to competitors?
Chung Hwa Pulp's ROC % of -2.50% can be compared against companies in the Forest Products industry. The industry median ROC % is 1.55. 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 Forest Products company?
The median ROC % among Forest Products companies is 1.55, based on 277 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. 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 Chung Hwa Pulp and its competitors. For the Forest Products industry, the median ROC % is 1.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chung Hwa Pulp's current ROC % is -2.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chung Hwa Pulp stock overvalued right now?
Based on GuruFocus' analysis, Chung Hwa Pulp (TPE:1905) is currently considered Fairly Valued. The stock's GF Value™ is NT$17.21, compared to a current price of NT$16.50 — trading 4.1% below its estimated fair value. The current ROC % is -2.50%. Chung Hwa Pulp's overall GF Score™ is 63/100 with 11 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 Chung Hwa Pulp (TPE:1905), the current ROC % is -2.50% 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 Chung Hwa Pulp (TPE:1905) Overvalued in 2026?
Based on GuruFocus' analysis, Chung Hwa Pulp stock appears to be undervalued.
The current stock price of NT$16.50 is trading 4.1% below its estimated GF Value™ of NT$17.21.
GuruFocus considers Chung Hwa Pulp to be Fairly Valued.
Key valuation signals for TPE:1905:
ROC %: -2.50%
GF Value™: NT$17.21 vs. price of NT$16.50 (4.1% below fair value)
No single metric tells the full story. See the TPE:1905 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chung Hwa Pulp Corp is engaged in the production and sale of pulp and paper. Its businesses include specialty paper, pulp, paper and paperboard, tape and other businesses. The Company operates through the Pulp and Fine Paper segment, which generates maximum revenue, and the Forestry segment. Its activities include the manufacture and sale of cardboard, paper and pulp, as well as seedling cultivation and reforestation. Geographically, the Group operates in Taiwan and mainland China, with Taiwan generating maximum revenue.
63GF Score
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