ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. I-Chiun Precision Industry Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 0.70%.
As of today (2026-06-27), I-Chiun Precision Industry Co's WACC % is 2.93%. I-Chiun Precision Industry Co's ROC % is 1.20% (calculated using TTM income statement data).
I-Chiun Precision Industry Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
I-Chiun Precision Industry Co (TPE:2486) 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, I-Chiun Precision Industry Co's WACC % is 2.93%. I-Chiun Precision Industry Co's ROC % is 1.20% (calculated using TTM income statement data).
I-Chiun Precision Industry Co 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.
I-Chiun Precision Industry Co ROC % Related Terms
I-Chiun Precision 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.
I-Chiun Precision Industry Co (TPE:2486) has a ROC % of 0.70% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on I-Chiun Precision Industry Co and its competitors.
Is I-Chiun Precision Industry Co's ROC % too high?
I-Chiun Precision Industry Co's current ROC % is 0.70%. The Hardware industry median ROC % is 4.12. I-Chiun Precision Industry Co's value of 0.70% is 83% below this industry median. Overall, I-Chiun Precision Industry Co has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does I-Chiun Precision Industry Co's ROC % compare to APH and GLW?
I-Chiun Precision Industry Co's ROC % of 0.70% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. I-Chiun Precision Industry Co's value of 0.70% is 83% 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 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. I-Chiun Precision Industry Co's current ROC % of 0.70% is 83% 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 I-Chiun Precision Industry 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. I-Chiun Precision Industry Co's current ROC % is 0.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is I-Chiun Precision Industry Co stock overvalued right now?
Based on GuruFocus' analysis, I-Chiun Precision Industry Co (TPE:2486) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$82.42, compared to a current price of NT$225.00 — trading 173% above its estimated fair value. The current ROC % is 0.70% and 83% below the Hardware industry median of 4.12. I-Chiun Precision Industry Co's overall GF Score™ is 51/100 with 10 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 I-Chiun Precision Industry Co (TPE:2486), the current ROC % is 0.70% 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 I-Chiun Precision Industry Co (TPE:2486) Overvalued in 2026?
Based on GuruFocus' analysis, I-Chiun Precision Industry Co stock appears to be overvalued.
The current stock price of NT$225.00 is trading 173% above its estimated GF Value™ of NT$82.42.
GuruFocus considers I-Chiun Precision Industry Co to be Significantly Overvalued.
Key valuation signals for TPE:2486:
ROC %: 0.70%
GF Value™: NT$82.42 vs. price of NT$225.00 (173% above fair value)
No single metric tells the full story. See the TPE:2486 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
I-Chiun Precision Industry Co Business Description
I-Chiun Precision Industry Co Ltd is mainly engaged in the manufacturing, processing, and trading of machinery and parts, electronic parts, parts for appliances, semiconductor LED lead frames, precision molds, etc., as well as relevant import and export trade, and real estate leasing business. The Geographical presence of the company in China, Taiwan, and Other countries. The majority of its revenue is generated from China.
51GF Score
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