ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sunonwealth Electric Machine Industry Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 43.06%.
As of today (2026-06-29), Sunonwealth Electric Machine Industry Co's WACC % is 12.41%. Sunonwealth Electric Machine Industry Co's ROC % is 39.21% (calculated using TTM income statement data).
Sunonwealth Electric Machine 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.
Sunonwealth Electric Machine Industry Co (TPE:2421) 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, Sunonwealth Electric Machine Industry Co's WACC % is 12.41%. Sunonwealth Electric Machine Industry Co's ROC % is 39.21% (calculated using TTM income statement data).
Sunonwealth Electric Machine 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.
Sunonwealth Electric Machine Industry Co ROC % Related Terms
Sunonwealth Electric Machine 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.
Sunonwealth Electric Machine Industry Co ROC % Chart
Sunonwealth Electric Machine Industry Co Annual Data
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.
Sunonwealth Electric Machine Industry Co (TPE:2421) has a ROC % of 43.06% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sunonwealth Electric Machine Industry Co and its competitors.
Is Sunonwealth Electric Machine Industry Co's ROC % too high?
Sunonwealth Electric Machine Industry Co's current ROC % is 43.06%. The Industrial Products industry median ROC % is 5.21. Sunonwealth Electric Machine Industry Co's value of 43.06% is 726.5% above this industry median. Overall, Sunonwealth Electric Machine Industry Co has a GF Score™ of 98/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sunonwealth Electric Machine Industry Co's ROC % compare to GEV and ETN?
Sunonwealth Electric Machine Industry Co's ROC % of 43.06% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.21. Sunonwealth Electric Machine Industry Co's value of 43.06% is 726.5% 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 an Industrial Products company?
The median ROC % among Industrial Products companies is 5.21, based on 3,033 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. Sunonwealth Electric Machine Industry Co's current ROC % of 43.06% is 726.5% 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 Sunonwealth Electric Machine Industry Co and its competitors. For the Industrial Products industry, the median ROC % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunonwealth Electric Machine Industry Co's current ROC % is 43.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunonwealth Electric Machine Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Sunonwealth Electric Machine Industry Co (TPE:2421) is currently considered Fairly Valued. The stock's GF Value™ is NT$147.66, compared to a current price of NT$137.00 — trading 7.2% below its estimated fair value. The current ROC % is 43.06% and 726.5% above the Industrial Products industry median of 5.21. Sunonwealth Electric Machine Industry Co's overall GF Score™ is 98/100 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 Sunonwealth Electric Machine Industry Co (TPE:2421), the current ROC % is 43.06% 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 Sunonwealth Electric Machine Industry Co (TPE:2421) Overvalued in 2026?
Based on GuruFocus' analysis, Sunonwealth Electric Machine Industry Co stock appears to be undervalued.
The current stock price of NT$137.00 is trading 7.2% below its estimated GF Value™ of NT$147.66.
GuruFocus considers Sunonwealth Electric Machine Industry Co to be Fairly Valued.
Key valuation signals for TPE:2421:
ROC %: 43.06%
GF Value™: NT$147.66 vs. price of NT$137.00 (7.2% below fair value)
Industry Position: 726.5% above the Industrial Products median
No single metric tells the full story. See the TPE:2421 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sunonwealth Electric Machine Industry Co Business Description
Sunonwealth Electric Machine Industry Co Ltd is a Taiwan-based company that engages in the production and sale of precision motors, AC/DC brushless fans, electric fans, and micro cooling fans. Its products include DC fan and blower series; AC fans, EC fans, fan trays, fan accessories, ventilation fans, and others. It serves its products in various industries, such as IT, automobile electronics, optical electronics, and network communication industries.
98GF Score
Get the complete analysis for TPE:2421
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:2421 has been successfully added to your 
