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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 %. Wai Chi Holdings Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 9.81%.
As of today (2026-08-24), Wai Chi Holdings Co's WACC % is 7.89%. Wai Chi Holdings Co's ROIC % is 8.22% (calculated using TTM income statement data).
Wai Chi Holdings Co 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.
Wai Chi Holdings Co (HKSE:01305) 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, Wai Chi Holdings Co's WACC % is 7.89%. Wai Chi Holdings Co's ROIC % is 8.22% (calculated using TTM income statement data).
Wai Chi Holdings Co 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.
Wai Chi Holdings Co ROIC % Related Terms
Wai Chi Holdings Co ROIC % Historical Data
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The historical data trend for Wai Chi Holdings Co'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 Electronic Components subindustry, Wai Chi Holdings Co'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.
Wai Chi Holdings Co ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, Wai Chi Holdings Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Wai Chi Holdings Co's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Wai Chi Holdings Co (HKSE:01305) has a ROIC % of 9.81% 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 Wai Chi Holdings Co and its competitors.
Is Wai Chi Holdings Co's ROIC % too high?
Wai Chi Holdings Co's current ROIC % is 9.81%. The Hardware industry median ROIC % is 4.61. Wai Chi Holdings Co's value of 9.81% is 112.8% above this industry median. Overall, Wai Chi Holdings Co has a GF Score™ of 86/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Wai Chi Holdings Co's ROIC % compare to APH and GLW?
Wai Chi Holdings Co's ROIC % of 9.81% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.61. Wai Chi Holdings Co's value of 9.81% is 112.8% 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 4.61, based on 2,439 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. Wai Chi Holdings Co's current ROIC % of 9.81% is 112.8% 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 Wai Chi Holdings Co and its competitors. For the Hardware industry, the median ROIC % is 4.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wai Chi Holdings Co's current ROIC % is 9.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wai Chi Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Wai Chi Holdings Co (HKSE:01305) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.08, compared to a current price of HK$0.75 — trading 31% below its estimated fair value. The current ROIC % is 9.81% and 112.8% above the Hardware industry median of 4.61. Wai Chi Holdings Co's overall GF Score™ is 86/100 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 Wai Chi Holdings Co (HKSE:01305), the current ROIC % is 9.81% 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 Wai Chi Holdings Co (HKSE:01305) Overvalued in 2026?
Based on GuruFocus' analysis, Wai Chi Holdings Co stock appears to be undervalued.
The current stock price of HK$0.75 is trading 31% below its estimated GF Value™ of HK$1.08.
GuruFocus considers Wai Chi Holdings Co to be Possible Value Trap.
Key valuation signals for HKSE:01305:
ROIC %: 9.81%
GF Value™: HK$1.08 vs. price of HK$0.75 (31% below fair value)
Industry Position: 112.8% above the Hardware median
No single metric tells the full story. See the HKSE:01305 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wai Chi Holdings Co Ltd engages in the manufacturing of light-emitting diode (LED) products for public and commercial use. It operates through the following segments: LED Backlight, LED Lighting, and Semiconductor memory chips. The LED backlight segment engages in the manufacturing and trading of LED backlight products in different sizes and applications. The LED lighting segment engages in the manufacturing and trading of LED lighting products for public and commercial use. The Semiconductor memory chips segment engages in the provision of packaging and testing services and related product sourcing business. Geographically, the company receives maximum revenue from the People's Republic of China.
86GF Score
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