ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. HH Galaxy Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 12.37%.
As of today (2026-07-06), HH Galaxy Co's WACC % is 8.75%. HH Galaxy Co's ROIC % is 9.21% (calculated using TTM income statement data).
HH Galaxy 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.
HH Galaxy Co (ROCO:2949) 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, HH Galaxy Co's WACC % is 8.75%. HH Galaxy Co's ROIC % is 9.21% (calculated using TTM income statement data).
HH Galaxy 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.
HH Galaxy Co ROIC % Related Terms
HH Galaxy Co ROIC % Historical Data
* Premium members only.
The historical data trend for HH Galaxy 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 Internet Retail subindustry, HH Galaxy 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.
HH Galaxy Co ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, HH Galaxy Co's ROIC % distribution charts can be found below:
* The bar in red indicates where HH Galaxy 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.
HH Galaxy Co (ROCO:2949) has a ROIC % of 12.37% 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 HH Galaxy Co and its competitors.
Is HH Galaxy Co's ROIC % too high?
HH Galaxy Co's current ROIC % is 12.37%. The Retail - Cyclical industry median ROIC % is 4.38. HH Galaxy Co's value of 12.37% is 182.7% above this industry median. Overall, HH Galaxy Co has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HH Galaxy Co's ROIC % compare to AMZN and BABA?
HH Galaxy Co's ROIC % of 12.37% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.38. HH Galaxy Co's value of 12.37% is 182.7% 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 Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.38, based on 1,106 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. HH Galaxy Co's current ROIC % of 12.37% is 182.7% 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 HH Galaxy Co and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HH Galaxy Co's current ROIC % is 12.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HH Galaxy Co stock overvalued right now?
Based on GuruFocus' analysis, HH Galaxy Co (ROCO:2949) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$99.87, compared to a current price of NT$75.00 — trading 24.9% below its estimated fair value. The current ROIC % is 12.37% and 182.7% above the Retail - Cyclical industry median of 4.38. HH Galaxy Co's overall GF Score™ is 65/100 with 7 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 HH Galaxy Co (ROCO:2949), the current ROIC % is 12.37% 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 HH Galaxy Co (ROCO:2949) Overvalued in 2026?
Based on GuruFocus' analysis, HH Galaxy Co stock appears to be undervalued.
The current stock price of NT$75.00 is trading 24.9% below its estimated GF Value™ of NT$99.87.
GuruFocus considers HH Galaxy Co to be Modestly Undervalued.
Key valuation signals for ROCO:2949:
ROIC %: 12.37%
GF Value™: NT$99.87 vs. price of NT$75.00 (24.9% below fair value)
Industry Position: 182.7% above the Retail - Cyclical median
No single metric tells the full story. See the ROCO:2949 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HH Galaxy Co Ltd provides comprehensive e-commerce sales services to brand owners. The Company offers customized solutions for the sale of branded products through the cross-disciplinary integration of technical expertise, including media, design, systems, sales channels, warehousing, logistics, and customer service. The company has two reportable operating segments as follows: E-Commerce Department: Product sales and e-commerce operation services; and Digital Marketing Department: Assist clients with brand digital management and digital marketing. Its geographic information includes Taiwan, Southeast Asia, and Japan.
65GF Score
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