ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Allied Industrial's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -4.91%.
As of today (2026-07-03), Allied Industrial's WACC % is 0.59%. Allied Industrial's ROIC % is -3.38% (calculated using TTM income statement data).
Allied Industrial earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Allied Industrial (ROCO:4702) 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, Allied Industrial's WACC % is 0.59%. Allied Industrial's ROIC % is -3.38% (calculated using TTM income statement data).
Allied Industrial 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.
Allied Industrial ROIC % Related Terms
Allied Industrial ROIC % Historical Data
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The historical data trend for Allied Industrial'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 Specialty Chemicals subindustry, Allied Industrial'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.
Allied Industrial ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Allied Industrial's ROIC % distribution charts can be found below:
* The bar in red indicates where Allied Industrial'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.
Allied Industrial (ROCO:4702) has a ROIC % of -4.91% 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 Allied Industrial and its competitors.
Is Allied Industrial's ROIC % too high?
Allied Industrial's current ROIC % is -4.91%. Overall, Allied Industrial has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Allied Industrial's ROIC % compare to LIN and SHW?
Allied Industrial's ROIC % of -4.91% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.46. 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.46, based on 1,580 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 Allied Industrial and its competitors. For the Chemicals industry, the median ROIC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allied Industrial's current ROIC % is -4.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allied Industrial stock overvalued right now?
Based on GuruFocus' analysis, Allied Industrial (ROCO:4702) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$2.47, compared to a current price of NT$10.25 — trading 315% above its estimated fair value. The current ROIC % is -4.91%. Allied Industrial's overall GF Score™ is 49/100 with 6 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 Allied Industrial (ROCO:4702), the current ROIC % is -4.91% 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 Allied Industrial (ROCO:4702) Overvalued in 2026?
Based on GuruFocus' analysis, Allied Industrial stock appears to be overvalued.
The current stock price of NT$10.25 is trading 315% above its estimated GF Value™ of NT$2.47.
GuruFocus considers Allied Industrial to be Significantly Overvalued.
Key valuation signals for ROCO:4702:
ROIC %: -4.91%
GF Value™: NT$2.47 vs. price of NT$10.25 (315% above fair value)
No single metric tells the full story. See the ROCO:4702 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allied Industrial Corp Ltd is engaged in the trading of disperse dyes, automobiles, and commodities, and in the production and sale of cigarette filters, nylon fibers, and polyester fibers. It is also actively investing in new businesses, including mobile distribution, venture capital, and financial technology. The group has two reportable operating segments: Department A and Department B. Department A, which generates the majority of overall revenue, is engaged in the trading of chemical products, such as dyes, in Taiwan. Department B is engaged in the trading of various commodities, while other departments are engaged in strategic investments. Geographically, it operates in Taiwan and Asia, which generate the maximum revenue, as well as other regions.
49GF Score
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