ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Loop Telecommunication International's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 62.54%.
As of today (2026-07-07), Loop Telecommunication International's WACC % is 1.25%. Loop Telecommunication International's ROC % is 26.44% (calculated using TTM income statement data).
Loop Telecommunication International 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.
Loop Telecommunication International (TPE:3025) 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, Loop Telecommunication International's WACC % is 1.25%. Loop Telecommunication International's ROC % is 26.44% (calculated using TTM income statement data).
Loop Telecommunication International 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.
Loop Telecommunication International ROC % Related Terms
Loop Telecommunication International 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.
Loop Telecommunication International (TPE:3025) has a ROC % of 62.54% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Loop Telecommunication International and its competitors.
Is Loop Telecommunication International's ROC % too high?
Loop Telecommunication International's current ROC % is 62.54%. The Hardware industry median ROC % is 4.12. Loop Telecommunication International's value of 62.54% is 1418% above this industry median. Overall, Loop Telecommunication International has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Loop Telecommunication International's ROC % compare to CSCO and CIEN?
Loop Telecommunication International's ROC % of 62.54% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. Loop Telecommunication International's value of 62.54% is 1418% 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 2,442 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. Loop Telecommunication International's current ROC % of 62.54% is 1418% 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 Loop Telecommunication International 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. Loop Telecommunication International's current ROC % is 62.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Loop Telecommunication International stock overvalued right now?
Based on GuruFocus' analysis, Loop Telecommunication International (TPE:3025) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$78.41, compared to a current price of NT$61.60 — trading 21.4% below its estimated fair value. The current ROC % is 62.54% and 1418% above the Hardware industry median of 4.12. Loop Telecommunication International's overall GF Score™ is 90/100 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 Loop Telecommunication International (TPE:3025), the current ROC % is 62.54% 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 Loop Telecommunication International (TPE:3025) Overvalued in 2026?
Based on GuruFocus' analysis, Loop Telecommunication International stock appears to be undervalued.
The current stock price of NT$61.60 is trading 21.4% below its estimated GF Value™ of NT$78.41.
GuruFocus considers Loop Telecommunication International to be Modestly Undervalued.
Key valuation signals for TPE:3025:
ROC %: 62.54%
GF Value™: NT$78.41 vs. price of NT$61.60 (21.4% below fair value)
Industry Position: 1418% above the Hardware median
No single metric tells the full story. See the TPE:3025 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Loop Telecommunication International Business Description
Loop Telecommunication International Inc operates in the communication equipment industry. The company is engaged in the R&D, development, production, manufacturing, and sales of user remote line disconnectors, protectors and their components, line reactors and their components, subtitle phones and their components, and smart network resource management multiplexers. The products offered by the firm include multi-service cross-connect, test equipment, wavelength division multiplexing, Ethernet access and switch, test stations, and others. Geographically, the company operates in Europe, America, Taiwan, Asia (other than Taiwan), and Others, with maximum revenue from Europe.
90GF Score
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