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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 %. Fibocom Wireless's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.67%.
As of today (2026-08-17), Fibocom Wireless's WACC % is 12.57%. Fibocom Wireless's ROIC % is 6.74% (calculated using TTM income statement data).
Fibocom Wireless earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Fibocom Wireless's WACC % is 12.57%. Fibocom Wireless's ROIC % is 6.74% (calculated using TTM income statement data).
Fibocom Wireless earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Fibocom Wireless ROIC % Related Terms
Fibocom Wireless ROIC % Historical Data
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The historical data trend for Fibocom Wireless's ROIC % 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.
For the Communication Equipment subindustry, Fibocom Wireless'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.
Fibocom Wireless ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, Fibocom Wireless's ROIC % distribution charts can be found below:
* The bar in red indicates where Fibocom Wireless's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) 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.
Fibocom Wireless (HKSE:00638) has a ROIC % of 2.67% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Fibocom Wireless and its competitors.
Is Fibocom Wireless' ROIC % too high?
Fibocom Wireless' current ROIC % is 2.67%. The Hardware industry median ROIC % is 4.29. Fibocom Wireless' value of 2.67% is 37.8% below this industry median. Overall, Fibocom Wireless has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does Fibocom Wireless' ROIC % compare to CSCO and MSI?
Fibocom Wireless' ROIC % of 2.67% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.29. Fibocom Wireless' value of 2.67% is 37.8% 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 ROIC % for a Hardware company?
The median ROIC % among Hardware companies is 4.29, based on 2,443 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. Fibocom Wireless's current ROIC % of 2.67% is 37.8% 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 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 Fibocom Wireless and its competitors. For the Hardware industry, the median ROIC % is 4.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fibocom Wireless's current ROIC % is 2.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fibocom Wireless stock overvalued right now?
Fibocom Wireless (HKSE:00638) has a current ROIC % of 2.67%. The stock's GF Value™ is HK$8.21, compared to a current price of HK$7.98 — trading 2.9% below its estimated fair value. The current ROIC % is 2.67% and 37.8% below the Hardware industry median of 4.29. Fibocom Wireless' overall GF Score™ is 90/100 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 Fibocom Wireless (HKSE:00638), the current ROIC % is 2.67% 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 Fibocom Wireless (HKSE:00638) Overvalued in 2026?
Based on GuruFocus' analysis, Fibocom Wireless stock appears to be undervalued.
The current stock price of HK$7.98 is trading 2.9% below its estimated GF Value™ of HK$8.21.
Key valuation signals for HKSE:00638:
ROIC %: 2.67%
GF Value™: HK$8.21 vs. price of HK$7.98 (2.9% below fair value)
Industry Position: 37.8% below the Hardware median
No single metric tells the full story. See the HKSE:00638 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fibocom Wireless Inc, along with its subsidiaries, is engaged in the design, R&D, and sales services of wireless communication modules and communication solutions for industry applications. The company's primary products include wireless communication modules based on 2G, 3G, 4G, 5G, NB-IoT , AI, and other technologies, as well as communication solutions tailored to their industry applications. These wireless communication modules are widely used in fields such as mobile payment, smart grids, vehicle networking, security monitoring, and mobile internet, enabling terminal devices to access the wireless communication networks for data transmission and interaction.
90GF Score
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