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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Highness Microelectronics's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2025 was 28.60%.
As of today (2026-08-09), Highness Microelectronics's WACC % is 12.95%. Highness Microelectronics's ROIC % is 28.60% (calculated using TTM income statement data).
Highness Microelectronics 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.
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, Highness Microelectronics's WACC % is 12.95%. Highness Microelectronics's ROIC % is 28.60% (calculated using TTM income statement data).
Highness Microelectronics 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.
Highness Microelectronics ROIC % Chart
Highness Microelectronics Annual Data
Trend
Mar23
Mar24
Mar25
ROIC %
12.81
41.86
28.60
Highness Microelectronics Semi-Annual Data
Mar23
Mar24
Mar25
ROIC %
12.81
41.86
28.60
BOM:544741 vs APH, GLW, TEL: ROIC % Comparison
For the Electronic Components subindustry, Highness Microelectronics'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.
Highness Microelectronics ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, Highness Microelectronics's ROIC % distribution charts can be found below:
* The bar in red indicates where Highness Microelectronics's ROIC % falls into.
Note:
The Operating Income data used here is one times the annual (Mar. 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.
Highness Microelectronics (BOM:544741) has a ROIC % of 28.60% as of Mar. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Highness Microelectronics and its competitors.
Is Highness Microelectronics' ROIC % too high?
Highness Microelectronics' current ROIC % is 28.60%. The Hardware industry median ROIC % is 4.24. Highness Microelectronics' value of 28.60% is 574.5% above this industry median. Overall, Highness Microelectronics has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Highness Microelectronics' ROIC % compare to APH and GLW?
Highness Microelectronics' ROIC % of 28.60% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.24. Highness Microelectronics' value of 28.60% is 574.5% 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 4.24, based on 2,441 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. Highness Microelectronics's current ROIC % of 28.60% is 574.5% 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 Highness Microelectronics and its competitors. For the Hardware industry, the median ROIC % is 4.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Highness Microelectronics's current ROIC % is 28.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Highness Microelectronics stock overvalued right now?
Highness Microelectronics (BOM:544741) has a current ROIC % of 28.60%. The current ROIC % is 28.60% and 574.5% above the Hardware industry median of 4.24. Highness Microelectronics' overall GF Score™ is 18/100 with 8 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 Highness Microelectronics (BOM:544741), the current ROIC % is 28.60% as of Mar. 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.
Highness Microelectronics Ltd is engaged in the Design, Development, Integration, Assembly and Manufacture of Digital-Imaging Solutions. The company operates in two main categories, namely 'Off the Shelf Products' and 'Market Specific Solutions/Project'. Its offerings include display modules and components such as TFT and LCD modules, display controllers, touch screens, backlight drivers, and related assemblies, as well as display systems, including Open-Frame Displays, Panel-Mount Displays, Industrial Grade Displays and Medical Grade Display Monitors for industrial and medical applications. The majority of the company's revenue is derived from designing, developing, integrating, assembling and manufacturing of Digital-Imaging Solutions.
18GF Score
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