ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Arch Meter's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 17.02%.
As of today (2026-07-09), Arch Meter's WACC % is 8.22%. Arch Meter's ROC % is 10.58% (calculated using TTM income statement data).
Arch Meter 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.
Arch Meter (TPE:4588) 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, Arch Meter's WACC % is 8.22%. Arch Meter's ROC % is 10.58% (calculated using TTM income statement data).
Arch Meter 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.
Arch Meter ROC % Related Terms
Arch Meter ROC % Historical Data
* Premium members only.
The historical data trend for Arch Meter'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 (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.
Arch Meter (TPE:4588) has a ROC % of 17.02% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Arch Meter and its competitors.
Is Arch Meter's ROC % too high?
Arch Meter's current ROC % is 17.02%. The Industrial Products industry median ROC % is 5.19. Arch Meter's value of 17.02% is 227.9% above this industry median. Overall, Arch Meter has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arch Meter's ROC % compare to VRT and BE?
Arch Meter's ROC % of 17.02% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.19. Arch Meter's value of 17.02% is 227.9% 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 an Industrial Products company?
The median ROC % among Industrial Products companies is 5.19, based on 3,029 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. Arch Meter's current ROC % of 17.02% is 227.9% 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 Arch Meter and its competitors. For the Industrial Products industry, the median ROC % is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arch Meter's current ROC % is 17.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arch Meter stock overvalued right now?
Based on GuruFocus' analysis, Arch Meter (TPE:4588) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$72.40, compared to a current price of NT$57.50 — trading 20.6% below its estimated fair value. The current ROC % is 17.02% and 227.9% above the Industrial Products industry median of 5.19. Arch Meter's overall GF Score™ is 67/100 with 7 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 Arch Meter (TPE:4588), the current ROC % is 17.02% 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 Arch Meter (TPE:4588) Overvalued in 2026?
Based on GuruFocus' analysis, Arch Meter stock appears to be undervalued.
The current stock price of NT$57.50 is trading 20.6% below its estimated GF Value™ of NT$72.40.
GuruFocus considers Arch Meter to be Modestly Undervalued.
Key valuation signals for TPE:4588:
ROC %: 17.02%
GF Value™: NT$72.40 vs. price of NT$57.50 (20.6% below fair value)
Industry Position: 227.9% above the Industrial Products median
No single metric tells the full story. See the TPE:4588 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arch Meter Corp is engaged in manufacturing and trading measuring instruments and control equipment. Its products include Embedded Instrumentation, Product Line, Electronic Energy Meter, Power Measurement Instrument, and Smart Meter IC. It operates in a single segment.
67GF Score
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