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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 %. Sun Brothers Development Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 0.58%.
As of today (2026-07-14), Sun Brothers Development Co's WACC % is 3.16%. Sun Brothers Development Co's ROIC % is 0.00% (calculated using TTM income statement data).
Sun Brothers Development Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sun Brothers Development Co (ROCO:3489) 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, Sun Brothers Development Co's WACC % is 3.16%. Sun Brothers Development Co's ROIC % is 0.00% (calculated using TTM income statement data).
Sun Brothers Development 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.
Sun Brothers Development Co ROIC % Related Terms
Sun Brothers Development Co ROIC % Historical Data
* 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.
Sun Brothers Development Co ROIC % Competitor Comparison
For the Real Estate - Development subindustry, Sun Brothers Development 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.
Sun Brothers Development Co ROIC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Sun Brothers Development Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Sun Brothers Development 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.
Sun Brothers Development Co (ROCO:3489) has a ROIC % of 0.58% 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 Sun Brothers Development Co and its competitors.
Is Sun Brothers Development Co's ROIC % too high?
Sun Brothers Development Co's current ROIC % is 0.58%. The Real Estate industry median ROIC % is 2.18. Sun Brothers Development Co's value of 0.58% is 73.4% below this industry median. Overall, Sun Brothers Development Co has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sun Brothers Development Co's ROIC % compare to competitors?
Sun Brothers Development Co's ROIC % of 0.58% can be compared against companies in the Real Estate industry. The industry median ROIC % is 2.18. Sun Brothers Development Co's value of 0.58% is 73.4% 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 Real Estate company?
The median ROIC % among Real Estate companies is 2.18, based on 1,758 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. Sun Brothers Development Co's current ROIC % of 0.58% is 73.4% 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 Sun Brothers Development Co and its competitors. For the Real Estate industry, the median ROIC % is 2.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sun Brothers Development Co's current ROIC % is 0.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sun Brothers Development Co stock overvalued right now?
Based on GuruFocus' analysis, Sun Brothers Development Co (ROCO:3489) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$9.16, compared to a current price of NT$19.85 — trading 116.7% above its estimated fair value. The current ROIC % is 0.58% and 73.4% below the Real Estate industry median of 2.18. Sun Brothers Development Co's overall GF Score™ is 52/100 with 9 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 Sun Brothers Development Co (ROCO:3489), the current ROIC % is 0.58% 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 Sun Brothers Development Co (ROCO:3489) Overvalued in 2026?
Based on GuruFocus' analysis, Sun Brothers Development Co stock appears to be overvalued.
The current stock price of NT$19.85 is trading 116.7% above its estimated GF Value™ of NT$9.16.
GuruFocus considers Sun Brothers Development Co to be Significantly Overvalued.
Key valuation signals for ROCO:3489:
ROIC %: 0.58%
GF Value™: NT$9.16 vs. price of NT$19.85 (116.7% above fair value)
Industry Position: 73.4% below the Real Estate median
No single metric tells the full story. See the ROCO:3489 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sun Brothers Development Co Ltd is engaged in wholesale of building materials, developing, constructing, leasing and selling for residential, commercial or industrial buildings and others. It is also involved in the development and construction of collective housing and public works contract construction. The company's segments are: Real property section, and Construction section. It derives revenue from Construction segment.
52GF Score
Get the complete analysis for ROCO:3489
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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