ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Allied Telesis Holdings KK's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 17.13%.
As of today (2026-06-28), Allied Telesis Holdings KK's WACC % is 2.35%. Allied Telesis Holdings KK's ROIC % is 12.36% (calculated using TTM income statement data).
Allied Telesis Holdings KK 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.
Allied Telesis Holdings KK (OTCPK:ATSKF) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Allied Telesis Holdings KK's WACC % is 2.35%. Allied Telesis Holdings KK's ROIC % is 12.36% (calculated using TTM income statement data).
Allied Telesis Holdings KK 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 %, ROIC % 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.
* 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.
For the Communication Equipment subindustry, Allied Telesis Holdings KK's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Allied Telesis Holdings KK ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, Allied Telesis Holdings KK's ROIC % distribution charts can be found below:
* The bar in red indicates where Allied Telesis Holdings KK's ROIC % falls into.
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.
Allied Telesis Holdings KK (ATSKF) has a ROIC % of 17.13% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Allied Telesis Holdings KK and its competitors.
Is Allied Telesis Holdings KK's ROIC % too high?
Allied Telesis Holdings KK's current ROIC % is 17.13%. The Hardware industry median ROIC % is 4.09. Allied Telesis Holdings KK's value of 17.13% is 319.3% above this industry median. Overall, Allied Telesis Holdings KK has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Allied Telesis Holdings KK's ROIC % compare to CSCO and CIEN?
Allied Telesis Holdings KK's ROIC % of 17.13% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.09. Allied Telesis Holdings KK's value of 17.13% is 319.3% 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 ROIC % for a Hardware company?
The median ROIC % among Hardware companies is 4.09, based on 2,448 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allied Telesis Holdings KK's current ROIC % of 17.13% is 319.3% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Allied Telesis Holdings KK and its competitors. For the Hardware industry, the median ROIC % is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allied Telesis Holdings KK's current ROIC % is 17.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allied Telesis Holdings KK stock overvalued right now?
Allied Telesis Holdings KK (ATSKF) has a current ROIC % of 17.13%. The stock's GF Value™ is $0.49, compared to a current price of $0.88 — trading 78.7% above its estimated fair value. The current ROIC % is 17.13% and 319.3% above the Hardware industry median of 4.09. Allied Telesis Holdings KK's overall GF Score™ is 60/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Allied Telesis Holdings KK (ATSKF), the current ROIC % is 17.13% 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 Allied Telesis Holdings KK (ATSKF) Overvalued in 2026?
Based on GuruFocus' analysis, Allied Telesis Holdings KK stock appears to be overvalued.
The current stock price of $0.88 is trading 78.7% above its estimated GF Value™ of $0.49.
Key valuation signals for ATSKF:
ROIC %: 17.13%
GF Value™: $0.49 vs. price of $0.88 (78.7% above fair value)
Industry Position: 319.3% above the Hardware median
No single metric tells the full story. See the ATSKF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allied Telesis Holdings KK is a Japan-based company engaged in the planning, development, manufacture, and sales of network devices and solutions. The company operates in three businesses namely network products, solutions, and support services. Its network products business manufactures software and hardware related products. The solutions business provides optimum ecosystem solutions. Its support services business is involved in planning and consulting, installation and structuring, operation and monitoring, and education and related support businesses.
60GF Score
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