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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. Cheng Fwa Industrial Co's annualized ROCE % for the quarter that ended in Dec. 2025 was 1.93%.
Cheng Fwa Industrial Co (ROCO:5426) 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.
* 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.
(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.
Cheng Fwa Industrial Co (ROCO:5426) has a ROCE % of 1.93% as of Dec. 2025.
Is Cheng Fwa Industrial Co's ROCE % too high?
Cheng Fwa Industrial Co's current ROCE % is 1.93%. The Industrial Products industry median ROCE % is 7.08. Cheng Fwa Industrial Co's value of 1.93% is 72.7% below this industry median. Overall, Cheng Fwa Industrial Co has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cheng Fwa Industrial Co's ROCE % compare to CRS and ATI?
Cheng Fwa Industrial Co's ROCE % of 1.93% can be compared against companies in the Industrial Products industry. The industry median ROCE % is 7.08. Cheng Fwa Industrial Co's value of 1.93% is 72.7% 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 ROCE % for an Industrial Products company?
The median ROCE % among Industrial Products companies is 7.08, based on 3,026 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. Cheng Fwa Industrial Co's current ROCE % of 1.93% is 72.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Industrial Products industry, the median ROCE % is 7.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cheng Fwa Industrial Co's current ROCE % is 1.93%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cheng Fwa Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Cheng Fwa Industrial Co (ROCO:5426) is currently considered Fairly Valued. The stock's GF Value™ is NT$24.52, compared to a current price of NT$26.15 — trading 6.6% above its estimated fair value. The current ROCE % is 1.93% and 72.7% below the Industrial Products industry median of 7.08. Cheng Fwa Industrial Co's overall GF Score™ is 57/100 with 3 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 Cheng Fwa Industrial Co (ROCO:5426), the current ROCE % is 1.93% 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 Cheng Fwa Industrial Co (ROCO:5426) Overvalued in 2026?
Based on GuruFocus' analysis, Cheng Fwa Industrial Co stock appears to be overvalued.
The current stock price of NT$26.15 is trading 6.6% above its estimated GF Value™ of NT$24.52.
GuruFocus considers Cheng Fwa Industrial Co to be Fairly Valued.
Key valuation signals for ROCO:5426:
ROCE %: 1.93%
GF Value™: NT$24.52 vs. price of NT$26.15 (6.6% above fair value)
Industry Position: 72.7% below the Industrial Products median
No single metric tells the full story. See the ROCO:5426 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cheng Fwa Industrial Co Ltd manufactures and supplies precision-stamped metal parts for the computer, telecommunication, networking, and electronic industries. Its products include computer casings and related components, precision stampings, server-side rails, and plastic injection molding solutions, among others. Their core services comprise the following main areas: design and engineering, rapid prototyping, tooling development, precision metal stamping, finishing processing, and plastic injection. Geographically, the Group generates maximum revenue from America, followed by Taiwan, Asia, and other regions.
57GF Score
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