ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Cheng Shin Rubber Industry Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 3.75%.
As of today (2026-06-27), Cheng Shin Rubber Industry Co's WACC % is 4.19%. Cheng Shin Rubber Industry Co's ROC % is 5.35% (calculated using TTM income statement data).
Cheng Shin Rubber Industry Co 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.
Cheng Shin Rubber Industry Co (TPE:2105) 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, Cheng Shin Rubber Industry Co's WACC % is 4.19%. Cheng Shin Rubber Industry Co's ROC % is 5.35% (calculated using TTM income statement data).
Cheng Shin Rubber Industry Co 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.
Cheng Shin Rubber Industry Co ROC % Related Terms
Cheng Shin Rubber Industry 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 (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.
Cheng Shin Rubber Industry Co (TPE:2105) has a ROC % of 3.75% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Cheng Shin Rubber Industry Co and its competitors.
Is Cheng Shin Rubber Industry Co's ROC % too high?
Cheng Shin Rubber Industry Co's current ROC % is 3.75%. The Vehicles & Parts industry median ROC % is 5.07. Cheng Shin Rubber Industry Co's value of 3.75% is 26% below this industry median. Overall, Cheng Shin Rubber Industry Co has a GF Score™ of 70/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cheng Shin Rubber Industry Co's ROC % compare to ORLY and AZO?
Cheng Shin Rubber Industry Co's ROC % of 3.75% can be compared against companies in the Vehicles & Parts industry. The industry median ROC % is 5.07. Cheng Shin Rubber Industry Co's value of 3.75% is 26% 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 Vehicles & Parts company?
The median ROC % among Vehicles & Parts companies is 5.07, based on 1,316 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. Cheng Shin Rubber Industry Co's current ROC % of 3.75% is 26% 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 Cheng Shin Rubber Industry Co and its competitors. For the Vehicles & Parts industry, the median ROC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cheng Shin Rubber Industry Co's current ROC % is 3.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cheng Shin Rubber Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Cheng Shin Rubber Industry Co (TPE:2105) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$42.43, compared to a current price of NT$29.40 — trading 30.7% below its estimated fair value. The current ROC % is 3.75% and 26% below the Vehicles & Parts industry median of 5.07. Cheng Shin Rubber Industry Co's overall GF Score™ is 70/100 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 Cheng Shin Rubber Industry Co (TPE:2105), the current ROC % is 3.75% 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 Cheng Shin Rubber Industry Co (TPE:2105) Overvalued in 2026?
Based on GuruFocus' analysis, Cheng Shin Rubber Industry Co stock appears to be undervalued.
The current stock price of NT$29.40 is trading 30.7% below its estimated GF Value™ of NT$42.43.
GuruFocus considers Cheng Shin Rubber Industry Co to be Significantly Undervalued.
Key valuation signals for TPE:2105:
ROC %: 3.75%
GF Value™: NT$42.43 vs. price of NT$29.40 (30.7% below fair value)
Industry Position: 26% below the Vehicles & Parts median
No single metric tells the full story. See the TPE:2105 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cheng Shin Rubber Industry Co Business Description
Cheng Shin Rubber Industry Co Ltd makes and sells rubber tires under the CST brand name. The company also sells rubber inner tubes and other rubber products. It includes the Processing, manufacturing, and trading of bicycle tires, electrical vehicle tires, reclaimed rubber, various rubbers, resin, and others. The Business organization is divided into Cheng Shin (Taiwan), MAXXIS (Taiwan) Trading, Cheng Shin (Xiamen), Cheng Shin (China), Petrel (Xiamen), Cheng Shin (Thailand), and other segments based on the nature of each company. The main sources of sales revenue are from manufacturing and sales of bicycle tires, electrical vehicle tires, reclaimed rubber, etc. Its geographical segments are Taiwan, China, the United States, and Others.
70GF Score
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