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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 %. Gwo Xi Stem Cell Applied Technology Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -10.18%.
Gwo Xi Stem Cell Applied Technology Co (ROCO:6704) 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, Gwo Xi Stem Cell Applied Technology Co's WACC % is 9.28%. Gwo Xi Stem Cell Applied Technology Co's ROIC % is -8.96% (calculated using TTM income statement data).
Gwo Xi Stem Cell Applied Technology 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.
Gwo Xi Stem Cell Applied Technology Co ROIC % Related Terms
Gwo Xi Stem Cell Applied Technology 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.
Gwo Xi Stem Cell Applied Technology Co ROIC % Chart
Gwo Xi Stem Cell Applied Technology Co Annual Data
For the Biotechnology subindustry, Gwo Xi Stem Cell Applied Technology 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.
Gwo Xi Stem Cell Applied Technology Co ROIC % vs Biotechnology Industry
Note:
The Operating Income data used here is two times the semi-annual (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.
Gwo Xi Stem Cell Applied Technology Co (ROCO:6704) has a ROIC % of -10.18% 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 Gwo Xi Stem Cell Applied Technology Co and its competitors.
Is Gwo Xi Stem Cell Applied Technology Co's ROIC % too high?
Gwo Xi Stem Cell Applied Technology Co's current ROIC % is -10.18%. Overall, Gwo Xi Stem Cell Applied Technology Co has a GF Score™ of 39/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Gwo Xi Stem Cell Applied Technology Co's ROIC % compare to VRTX and REGN?
Gwo Xi Stem Cell Applied Technology Co's ROIC % of -10.18% can be compared against companies in the Biotechnology industry. 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 Biotechnology company?
A good ROIC % depends on the Biotechnology industry context. 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 Gwo Xi Stem Cell Applied Technology Co and its competitors. Gwo Xi Stem Cell Applied Technology Co's current ROIC % is -10.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gwo Xi Stem Cell Applied Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Gwo Xi Stem Cell Applied Technology Co (ROCO:6704) is currently considered Possible Value Trap. The stock's GF Value™ is NT$35.51, compared to a current price of NT$19.15 — trading 46.1% below its estimated fair value. The current ROIC % is -10.18%. Gwo Xi Stem Cell Applied Technology Co's overall GF Score™ is 39/100 with 5 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 Gwo Xi Stem Cell Applied Technology Co (ROCO:6704), the current ROIC % is -10.18% 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 Gwo Xi Stem Cell Applied Technology Co (ROCO:6704) Overvalued in 2026?
Based on GuruFocus' analysis, Gwo Xi Stem Cell Applied Technology Co stock appears to be undervalued.
The current stock price of NT$19.15 is trading 46.1% below its estimated GF Value™ of NT$35.51.
GuruFocus considers Gwo Xi Stem Cell Applied Technology Co to be Possible Value Trap.
Key valuation signals for ROCO:6704:
ROIC %: -10.18%
GF Value™: NT$35.51 vs. price of NT$19.15 (46.1% below fair value)
No single metric tells the full story. See the ROCO:6704 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gwo Xi Stem Cell Applied Technology Co Business Description
Gwo Xi Stem Cell Applied Technology Co is committed to developing stem cell medicines that have the potential to help patients with unmet medical needs.
39GF Score
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