Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Axera Semiconductor Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -10.34%.
As of today (2026-08-09), Axera Semiconductor Co's WACC % is 9.80%. Axera Semiconductor Co's ROIC % is -2.85% (calculated using TTM income statement data).
Axera Semiconductor Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Axera Semiconductor Co (HKSE:0600) 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, Axera Semiconductor Co's WACC % is 9.80%. Axera Semiconductor Co's ROIC % is -2.85% (calculated using TTM income statement data).
Axera 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.
* 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.
Axera Semiconductor Co ROIC % Chart
Axera Semiconductor Co Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
ROIC %
-21.90
-16.78
-11.23
-9.61
Axera Semiconductor Co Quarterly Data
Dec22
Dec23
Dec24
Sep25
Dec25
ROIC %
0.00
0.00
-9.76
0.00
-10.34
HKSE:0600 vs NVDA, AVGO, MU: ROIC % Comparison
For the Semiconductors subindustry, Axera 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.
Axera Semiconductor Co ROIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Axera Semiconductor Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Axera Semiconductor Co'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.
Axera Semiconductor Co (HKSE:0600) has a ROIC % of -10.34% 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 Axera Semiconductor Co and its competitors.
Is Axera Semiconductor Co's ROIC % too high?
Axera Semiconductor Co's current ROIC % is -10.34%.
How does Axera Semiconductor Co's ROIC % compare to NVDA and AVGO?
Axera Semiconductor Co's ROIC % of -10.34% can be compared against companies in the Semiconductors industry. The industry median ROIC % is 3.91. 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 3.91, based on 1,012 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 Axera Semiconductor Co and its competitors. For the Semiconductors industry, the median ROIC % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axera Semiconductor Co's current ROIC % is -10.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axera Semiconductor Co stock overvalued right now?
Axera Semiconductor Co (HKSE:0600) has a current ROIC % of -10.34%. The current ROIC % is -10.34%. 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 Axera Semiconductor Co (HKSE:0600), the current ROIC % is -10.34% 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.
Axera Semiconductor Co Ltd is principally engaged in the AI inference SoCs, delivering cutting-edge perception and computing platforms for edge and endpoint AI applications. It is building an AI computing infrastructure to make artificial intelligence accessible to everyone, creating an empowered future where AI improves lives for all. The company is focused on three business areas: on-device computing, smart vehicles, and edge AI inference, and is executing a plan to become a top-tier, internationally scaled, and well-capitalized industrial. Its product portfolio includes On-device Computing products, Smart Vehicle products, and Edge AI Inference products. The company derives the majority of its revenue from the sale of its On-device computing products.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:0600 has been successfully added to your 
