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. LOTTE Fine Chemical Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 8.97%.
LOTTE Fine Chemical Co (XKRX:004000) 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 (Mar. 2026) 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.
LOTTE Fine Chemical Co (XKRX:004000) has a ROCE % of 8.97% as of Mar. 2026.
Is LOTTE Fine Chemical Co's ROCE % too high?
LOTTE Fine Chemical Co's current ROCE % is 8.97%. The Chemicals industry median ROCE % is 6.42. LOTTE Fine Chemical Co's value of 8.97% is 39.7% above this industry median. Overall, LOTTE Fine Chemical Co has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does LOTTE Fine Chemical Co's ROCE % compare to DOW?
LOTTE Fine Chemical Co's ROCE % of 8.97% can be compared against companies in the Chemicals industry. The industry median ROCE % is 6.42. LOTTE Fine Chemical Co's value of 8.97% is 39.7% 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 Chemicals company?
The median ROCE % among Chemicals companies is 6.42, based on 1,589 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. LOTTE Fine Chemical Co's current ROCE % of 8.97% is 39.7% 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 Chemicals industry, the median ROCE % is 6.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LOTTE Fine Chemical Co's current ROCE % is 8.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LOTTE Fine Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, LOTTE Fine Chemical Co (XKRX:004000) is currently considered Fairly Valued. The stock's GF Value™ is ₩49,879.01, compared to a current price of ₩45,450.00 — trading 8.9% below its estimated fair value. The current ROCE % is 8.97% and 39.7% above the Chemicals industry median of 6.42. LOTTE Fine Chemical Co's overall GF Score™ is 90/100 with 5 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 LOTTE Fine Chemical Co (XKRX:004000), the current ROCE % is 8.97% 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 LOTTE Fine Chemical Co (XKRX:004000) Overvalued in 2026?
Based on GuruFocus' analysis, LOTTE Fine Chemical Co stock appears to be undervalued.
The current stock price of ₩45,450.00 is trading 8.9% below its estimated GF Value™ of ₩49,879.01.
GuruFocus considers LOTTE Fine Chemical Co to be Fairly Valued.
Key valuation signals for XKRX:004000:
ROCE %: 8.97%
GF Value™: ₩49,879.01 vs. price of ₩45,450.00 (8.9% below fair value)
Industry Position: 39.7% above the Chemicals median
No single metric tells the full story. See the XKRX:004000 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LOTTE Fine Chemical Co Ltd manufactures and sells a variety of chemicals, and chemical-based products. The firm organizes itself into three segments based on product type. The chlorine/cellulose segment, which generates the majority of revenue, sells cellulose and caustic soda used to make products for the construction, cement, ceramics, paint, detergent, and personal care industries. The electronic materials segment sells toner for color laser printers, liquid crystal display materials, and lithium nickel cobalt manganese oxide, used in rechargeable batteries. The ammonia segment's products are used in the production of fertilizer, textiles, and pharmaceuticals. The majority of sales come from Asia.
90GF Score
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