ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Universal Microelectronics Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 4.34%.
As of today (2026-06-27), Universal Microelectronics Co's WACC % is 0.74%. Universal Microelectronics Co's ROC % is 0.76% (calculated using TTM income statement data).
Universal Microelectronics 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.
Universal Microelectronics Co (TPE:2413) 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, Universal Microelectronics Co's WACC % is 0.74%. Universal Microelectronics Co's ROC % is 0.76% (calculated using TTM income statement data).
Universal Microelectronics 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.
Universal Microelectronics Co ROC % Related Terms
Universal 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 (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.
Universal Microelectronics Co (TPE:2413) has a ROC % of 4.34% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Universal Microelectronics Co and its competitors.
Is Universal Microelectronics Co's ROC % too high?
Universal Microelectronics Co's current ROC % is 4.34%. The Hardware industry median ROC % is 4.12. Universal Microelectronics Co's value of 4.34% is 5.5% above this industry median. Overall, Universal Microelectronics Co has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Universal Microelectronics Co's ROC % compare to APH and GLW?
Universal Microelectronics Co's ROC % of 4.34% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. Universal Microelectronics Co's value of 4.34% is 5.5% 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 Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,444 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. Universal Microelectronics Co's current ROC % of 4.34% is 5.5% 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 Universal Microelectronics Co and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Microelectronics Co's current ROC % is 4.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Microelectronics Co stock overvalued right now?
Based on GuruFocus' analysis, Universal Microelectronics Co (TPE:2413) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$18.94, compared to a current price of NT$47.55 — trading 151.1% above its estimated fair value. The current ROC % is 4.34% and 5.5% above the Hardware industry median of 4.12. Universal Microelectronics Co's overall GF Score™ is 53/100 with 2 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 Universal Microelectronics Co (TPE:2413), the current ROC % is 4.34% 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 Universal Microelectronics Co (TPE:2413) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Microelectronics Co stock appears to be overvalued.
The current stock price of NT$47.55 is trading 151.1% above its estimated GF Value™ of NT$18.94.
GuruFocus considers Universal Microelectronics Co to be Significantly Overvalued.
Key valuation signals for TPE:2413:
ROC %: 4.34%
GF Value™: NT$18.94 vs. price of NT$47.55 (151.1% above fair value)
No single metric tells the full story. See the TPE:2413 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Microelectronics Co Business Description
Universal Microelectronics Co Ltd is engaged in the manufacturing and selling of computer peripherals, connectors, wires, and other parts. Its operating segments include the Magnetic Component & Power Product Department, which is responsible for the production of electronic components and generates maximum revenue; the Information and Communication Product Department, which is responsible for the production of OEM and ODM information and communication products; the Optical Communication Product Office, which is responsible for the production of optical communication equipment products; and Others, which mainly involves the trading of raw materials and acting as a purchasing agent for commodities. It generates maximum revenue from the United States.
53GF Score
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