ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. M31 Technology's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 22.65%.
As of today (2026-07-11), M31 Technology's WACC % is -1.23%. M31 Technology's ROIC % is 5.20% (calculated using TTM income statement data).
M31 Technology 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.
M31 Technology (ROCO:6643) 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, M31 Technology's WACC % is -1.23%. M31 Technology's ROIC % is 5.20% (calculated using TTM income statement data).
M31 Technology 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.
M31 Technology ROIC % Related Terms
M31 Technology ROIC % Historical Data
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The historical data trend for M31 Technology'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 Semiconductors subindustry, M31 Technology'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.
M31 Technology ROIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, M31 Technology's ROIC % distribution charts can be found below:
* The bar in red indicates where M31 Technology'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.
M31 Technology (ROCO:6643) has a ROIC % of 22.65% 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 M31 Technology and its competitors.
Is M31 Technology's ROIC % too high?
M31 Technology's current ROIC % is 22.65%. The Semiconductors industry median ROIC % is 3.77. M31 Technology's value of 22.65% is 500.8% above this industry median. Overall, M31 Technology has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does M31 Technology's ROIC % compare to NVDA and AVGO?
M31 Technology's ROIC % of 22.65% can be compared against companies in the Semiconductors industry. The industry median ROIC % is 3.77. M31 Technology's value of 22.65% is 500.8% 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 Semiconductors company?
The median ROIC % among Semiconductors companies is 3.77, based on 1,009 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. M31 Technology's current ROIC % of 22.65% is 500.8% 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 M31 Technology and its competitors. For the Semiconductors industry, the median ROIC % is 3.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. M31 Technology's current ROIC % is 22.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is M31 Technology stock overvalued right now?
Based on GuruFocus' analysis, M31 Technology (ROCO:6643) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$893.61, compared to a current price of NT$442.00 — trading 50.5% below its estimated fair value. The current ROIC % is 22.65% and 500.8% above the Semiconductors industry median of 3.77. M31 Technology's overall GF Score™ is 87/100 with 3 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 M31 Technology (ROCO:6643), the current ROIC % is 22.65% 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 M31 Technology (ROCO:6643) Overvalued in 2026?
Based on GuruFocus' analysis, M31 Technology stock appears to be undervalued.
The current stock price of NT$442.00 is trading 50.5% below its estimated GF Value™ of NT$893.61.
GuruFocus considers M31 Technology to be Significantly Undervalued.
Key valuation signals for ROCO:6643:
ROIC %: 22.65%
GF Value™: NT$893.61 vs. price of NT$442.00 (50.5% below fair value)
Industry Position: 500.8% above the Semiconductors median
No single metric tells the full story. See the ROCO:6643 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
M31 Technology Corp is a professional silicon intellectual property (IP) provider. The company focuses on providing high-speed interface IPs, memory compilers, and standard cell library solutions. The company provides customers with differentiated IP solutions. These solutions help customers grasp market opportunities in short design cycles, low manufacturing costs, and high product competitiveness.
87GF Score
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ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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