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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. GMI Technology's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 10.30%.
As of today (2026-08-11), GMI Technology's WACC % is 9.76%. GMI Technology's ROC % is 6.07% (calculated using TTM income statement data).
GMI Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, GMI Technology's WACC % is 9.76%. GMI Technology's ROC % is 6.07% (calculated using TTM income statement data).
GMI Technology 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.
GMI Technology ROC % Related Terms
GMI Technology ROC % Historical Data
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The historical data trend for GMI Technology's ROC % can be seen below:
* 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 (Mar. 2026) 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.
GMI Technology (TPE:3312) has a ROC % of 10.30% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on GMI Technology and its competitors.
Is GMI Technology's ROC % too high?
GMI Technology's current ROC % is 10.30%. The Hardware industry median ROC % is 4.24. GMI Technology's value of 10.30% is 142.9% above this industry median. Overall, GMI Technology has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GMI Technology's ROC % compare to SNX and ARW?
GMI Technology's ROC % of 10.30% can be compared against companies in the Hardware industry. The industry median ROC % is 4.24. GMI Technology's value of 10.30% is 142.9% 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 4.24, based on 2,441 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. GMI Technology's current ROC % of 10.30% is 142.9% 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 GMI Technology and its competitors. For the Hardware industry, the median ROC % is 4.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GMI Technology's current ROC % is 10.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GMI Technology stock overvalued right now?
Based on GuruFocus' analysis, GMI Technology (TPE:3312) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$41.55, compared to a current price of NT$50.50 — trading 21.5% above its estimated fair value. The current ROC % is 10.30% and 142.9% above the Hardware industry median of 4.24. GMI Technology's overall GF Score™ is 80/100 with 6 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 GMI Technology (TPE:3312), the current ROC % is 10.30% as of Mar. 2026. 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 GMI Technology (TPE:3312) Overvalued in 2026?
Based on GuruFocus' analysis, GMI Technology stock appears to be overvalued.
The current stock price of NT$50.50 is trading 21.5% above its estimated GF Value™ of NT$41.55.
GuruFocus considers GMI Technology to be Modestly Overvalued.
Key valuation signals for TPE:3312:
ROC %: 10.30%
GF Value™: NT$41.55 vs. price of NT$50.50 (21.5% above fair value)
Industry Position: 142.9% above the Hardware median
No single metric tells the full story. See the TPE:3312 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
G M I Technology Inc is an electronics component distributor and application solutions provider in Taiwan. The company and its subsidiaries operate in the trading and manufacturing of electronic equipment and components, computer software development, machinery and equipment rental, and related business services. Its products include consumer electronics, home appliances, information technology, and networking, data and telecommunications, industrial, and power solutions. The company generates maximum revenue from Digital Communication Solutions and Components. Geographically, it derives a majority of its revenue from China followed by Taiwan, United states and others.
80GF Score
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