Hon Hai Precision Industry Co (LSE:HHPD) ROCE %: 16.21% (As of Dec. 2025)


LSE:HHPD Hon Hai Precision Industry Co Ltd LSE:HHPD
90 GF Score
Price $16.26
GF Value $14.08
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Hon Hai Precision Industry Co ROCE %?

Hon Hai Precision Industry Co LSE:HHPD +0.74% 90 ROCE % is 16.21% as of Dec. 2025. GuruFocus rates LSE:HHPD with a GF Score™ of 90/100 and a GF Value™ of $14.08 (Modestly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Hon Hai Precision Industry Co's annualized ROCE % for the quarter that ended in Dec. 2025 was 16.21%.

Hon Hai Precision Industry Co  (LSE:HHPD) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Hon Hai Precision Industry Co ROCE % Related Terms

Hon Hai Precision Industry Co ROCE % Historical Data

* Premium members only.

The historical data trend for Hon Hai Precision Industry Co's ROCE % 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.

Hon Hai Precision Industry Co ROCE % Chart

Hon Hai Precision Industry Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.84 10.76 12.60 11.47 14.64

Hon Hai Precision Industry Co Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.86 11.91 14.73 18.19 16.21
LSE:HHPD
90GF Score
Hon Hai Precision Industry Co Ltd LSE:HHPD
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Hon Hai Precision Industry Co ROCE % Calculation

Hon Hai Precision Industry Co's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=10574.703/( ( (134906.952 - 66764.829) + (162816.515 - 86464.104) )/ 2 )
=10574.703/( (68142.123+76352.411)/ 2 )
=10574.703/72247.267
=14.64 %

Hon Hai Precision Industry Co's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=12036.94/( ( (161163.5 - 88962.925) + (162816.515 - 86464.104) )/ 2 )
=12036.94/( ( 72200.575 + 76352.411 )/ 2 )
=12036.94/74276.493
=16.21 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2025) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 16.21% mean?
Hon Hai Precision Industry Co (LSE:HHPD) has a ROCE % of 16.21% as of Dec. 2025.
Is Hon Hai Precision Industry Co's ROCE % too high?
Hon Hai Precision Industry Co's current ROCE % is 16.21%. The Hardware industry median ROCE % is 5.83. Hon Hai Precision Industry Co's value of 16.21% is 178.3% above this industry median. Overall, Hon Hai Precision Industry Co has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hon Hai Precision Industry Co's ROCE % compare to APH and GLW?
Hon Hai Precision Industry Co's ROCE % of 16.21% can be compared against companies in the Hardware industry. The industry median ROCE % is 5.83. Hon Hai Precision Industry Co's value of 16.21% is 178.3% 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 ROCE % for a Hardware company?
The median ROCE % among Hardware companies is 5.83, based on 2,444 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hon Hai Precision Industry Co's current ROCE % of 16.21% is 178.3% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Hardware industry, the median ROCE % is 5.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hon Hai Precision Industry Co's current ROCE % is 16.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hon Hai Precision Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Hon Hai Precision Industry Co (LSE:HHPD) is currently considered Modestly Overvalued. The stock's GF Value™ is $14.08, compared to a current price of $16.26 — trading 15.5% above its estimated fair value. The current ROCE % is 16.21% and 178.3% above the Hardware industry median of 5.83. Hon Hai Precision Industry Co's overall GF Score™ is 90/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Hon Hai Precision Industry Co (LSE:HHPD), the current ROCE % is 16.21% 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 Hon Hai Precision Industry Co (LSE:HHPD) Overvalued in 2026?

Based on GuruFocus' analysis, Hon Hai Precision Industry Co stock appears to be overvalued. The current stock price of $16.26 is trading 15.5% above its estimated GF Value™ of $14.08. GuruFocus considers Hon Hai Precision Industry Co to be Modestly Overvalued.

Key valuation signals for LSE:HHPD:

  • ROCE %: 16.21%
  • GF Value™: $14.08 vs. price of $16.26 (15.5% above fair value)
  • GF Score™: 90/100 with 6 warning signs
  • Industry Position: 178.3% above the Hardware median

No single metric tells the full story. See the LSE:HHPD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Hon Hai Precision Industry Co Business Description

Address 236 No. 2, Ziyou Street, Tucheng District, New Taipei, TWN, 236
Hon Hai Precision is the world's largest contract manufacturer of consumer electronics, communications, and computer products. It is the biggest supplier to Apple, whose business accounted for around 50% of overall revenue in 2025. Hon Hai is also involved in the production of upstream components such as electronic connectors, semiconductor packaging, and metal casings for smartphones, as well as producing servers. These upstream activities are mainly conducted through its listed majority-owned subsidiaries Foxconn Industrial Internet and FIH Mobile. In response to its traditional end markets of computers, smartphones, and telecom equipment maturing in 2019 it started on a strategy to develop expertise in three new growth areas—electric vehicles, digital health, and robotics.
90GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$16.26
Price
$14.08
GF Value