Shanghai FourSemi Semiconductor Co (HKSE:03625) ROIC %: -31.09% (As of Dec. 2025)

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HKSE:03625 Shanghai FourSemi Semiconductor Co Ltd HKSE:03625
9 GF Score
Price HK$92.60
! 2 Warning Signs
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What is Shanghai FourSemi Semiconductor Co ROIC %?

Shanghai FourSemi Semiconductor Co HKSE:03625 +0.11% 9 ROIC % is -31.09% as of Dec. 2025. GuruFocus rates HKSE:03625 with a GF Score™ of 9/100. The stock has 2 warning signs investors should review.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Shanghai FourSemi Semiconductor Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -31.09%.

As of today (2026-09-02), Shanghai FourSemi Semiconductor Co's WACC % is 10.71%. Shanghai FourSemi Semiconductor Co's ROIC % is -31.09% (calculated using TTM income statement data). Shanghai FourSemi Semiconductor Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Shanghai FourSemi Semiconductor Co  (HKSE:03625) 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, Shanghai FourSemi Semiconductor Co's WACC % is 10.71%. Shanghai FourSemi Semiconductor Co's ROIC % is -31.09% (calculated using TTM income statement data). Shanghai FourSemi Semiconductor Co 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.

Shanghai FourSemi Semiconductor Co ROIC % Related Terms

Shanghai FourSemi Semiconductor Co ROIC % Historical Data

* Premium members only.

The historical data trend for Shanghai FourSemi Semiconductor 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.

Shanghai FourSemi Semiconductor Co ROIC % Chart

Shanghai FourSemi Semiconductor Co Annual Data
Trend Dec22 Dec23 Dec24 Dec25
ROIC %
-47.98 -59.24 -35.26 -31.09

Shanghai FourSemi Semiconductor Co Semi-Annual Data
Dec22 Dec23 Dec24 Dec25
ROIC % -47.98 -59.24 -35.26 -31.09

HKSE:03625 vs LRCX, AMAT, KLAC: ROIC % Comparison

For the Semiconductor Equipment & Materials subindustry, Shanghai FourSemi Semiconductor 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.

Shanghai FourSemi Semiconductor Co ROIC % vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Shanghai FourSemi Semiconductor Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Shanghai FourSemi Semiconductor Co's ROIC % falls into.


HKSE:03625
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Shanghai FourSemi Semiconductor Co Ltd HKSE:03625
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Shanghai FourSemi Semiconductor Co ROIC % Calculation

Shanghai FourSemi Semiconductor Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2025 is calculated as:

ROIC % (A: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2024 ) + Invested Capital (A: Dec. 2025 ))/ count )
=-57.79 * ( 1 - 0% )/( (186.051 + 185.73)/ 2 )
=-57.79/185.8905
=-31.09 %

where

Invested Capital(A: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=343.179 - 51.131 - ( 105.997 - max(0, 148.286 - 299.534+105.997))
=186.051

Invested Capital(A: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=350.059 - 33.895 - ( 130.434 - max(0, 203.937 - 337.16+130.434))
=185.73

Shanghai FourSemi Semiconductor Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2025 is calculated as:

ROIC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2024 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=-57.79 * ( 1 - 0% )/( (186.051 + 185.73)/ 2 )
=-57.79/185.8905
=-31.09 %

where

Invested Capital(Q: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=343.179 - 51.131 - ( 105.997 - max(0, 148.286 - 299.534+105.997))
=186.051

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=350.059 - 33.895 - ( 130.434 - max(0, 203.937 - 337.16+130.434))
=185.73

Note: The Operating Income data used here is one times the 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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of -31.09% mean?
Shanghai FourSemi Semiconductor Co (HKSE:03625) has a ROIC % of -31.09% 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 Shanghai FourSemi Semiconductor Co and its competitors.
Is Shanghai FourSemi Semiconductor Co's ROIC % too high?
Shanghai FourSemi Semiconductor Co's current ROIC % is -31.09%. Overall, Shanghai FourSemi Semiconductor Co has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Shanghai FourSemi Semiconductor Co's ROIC % compare to LRCX and AMAT?
Shanghai FourSemi Semiconductor Co's ROIC % of -31.09% can be compared against companies in the Semiconductors industry. The industry median ROIC % is 4.49. 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 Semiconductors company?
The median ROIC % among Semiconductors companies is 4.49, based on 1,018 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. 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 Shanghai FourSemi Semiconductor Co and its competitors. For the Semiconductors industry, the median ROIC % is 4.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai FourSemi Semiconductor Co's current ROIC % is -31.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai FourSemi Semiconductor Co stock overvalued right now?
Shanghai FourSemi Semiconductor Co (HKSE:03625) has a current ROIC % of -31.09%. The current ROIC % is -31.09%. Shanghai FourSemi Semiconductor Co's overall GF Score™ is 9/100 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 Shanghai FourSemi Semiconductor Co (HKSE:03625), the current ROIC % is -31.09% 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.

Shanghai FourSemi Semiconductor Co Business Description

Address No. 88 Yunjuan Road, Lane 11, Second Street, Room 303, Building 4, Gangcheng Square, Lin-gang Special Area, China (Shanghai) Free Trade Pilot Zone, Shanghai, CHN
Shanghai FourSemi Semiconductor Co Ltd, along with its subsidiaries, is principally engaged in the design, research, development, and sale of perceptual-intelligence chips focusing on power amplifier audio and haptic driver in China. It specializes in the design of low-power audio chips, mid/high-power audio chips, and haptic drivers under a fabless model to offer a range of solutions for various application scenarios. The company's product portfolio includes automotive intelligent audio chips, medium-to-high power intelligent audio chips, portable intelligent audio chips, haptic feedback chips, and power chips. The majority of the company's revenue is derived from the sale of Low-power audio chips. Geographically, all of its revenue is derived from the PRC.
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