ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. President Chain Store's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 3.42%.
As of today (2026-06-27), President Chain Store's WACC % is 2.82%. President Chain Store's ROC % is 4.67% (calculated using TTM income statement data).
President Chain Store 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.
President Chain Store (TPE:2912) 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, President Chain Store's WACC % is 2.82%. President Chain Store's ROC % is 4.67% (calculated using TTM income statement data).
President Chain Store 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.
* 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.
President Chain Store (TPE:2912) has a ROC % of 3.42% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on President Chain Store and its competitors.
Is President Chain Store's ROC % too high?
President Chain Store's current ROC % is 3.42%. The Retail - Defensive industry median ROC % is 5.54. President Chain Store's value of 3.42% is 38.3% below this industry median. Overall, President Chain Store has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does President Chain Store's ROC % compare to KR and SFM?
President Chain Store's ROC % of 3.42% can be compared against companies in the Retail - Defensive industry. The industry median ROC % is 5.54. President Chain Store's value of 3.42% is 38.3% 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 Retail - Defensive company?
The median ROC % among Retail - Defensive companies is 5.54, based on 309 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. President Chain Store's current ROC % of 3.42% is 38.3% 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 President Chain Store and its competitors. For the Retail - Defensive industry, the median ROC % is 5.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. President Chain Store's current ROC % is 3.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is President Chain Store stock overvalued right now?
Based on GuruFocus' analysis, President Chain Store (TPE:2912) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$305.25, compared to a current price of NT$223.00 — trading 26.9% below its estimated fair value. The current ROC % is 3.42% and 38.3% below the Retail - Defensive industry median of 5.54. President Chain Store's overall GF Score™ is 89/100 with 5 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 President Chain Store (TPE:2912), the current ROC % is 3.42% 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 President Chain Store (TPE:2912) Overvalued in 2026?
Based on GuruFocus' analysis, President Chain Store stock appears to be undervalued.
The current stock price of NT$223.00 is trading 26.9% below its estimated GF Value™ of NT$305.25.
GuruFocus considers President Chain Store to be Modestly Undervalued.
Key valuation signals for TPE:2912:
ROC %: 3.42%
GF Value™: NT$305.25 vs. price of NT$223.00 (26.9% below fair value)
Industry Position: 38.3% below the Retail - Defensive median
No single metric tells the full story. See the TPE:2912 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
President Chain Store Corporation, along with its subsidiaries, is engaged in managing convenience stores, restaurants, drugstores, department stores, supermarkets, and online shopping stores under different brands. Its offerings include food, beverages, coffee, daily commodities, cosmetics and health care products. The group operates in Taiwan, Mainland China, the Philippines, and Japan. Its reportable segments are Convenience stores, Retail business group, Logistics business group, and Others. The majority of the company's revenue is derived from the Convenience Stores segment. Geographically, the company derives the maximum revenue from Taiwan, followed by other regions.
89GF Score
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