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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 %. Gudeng Equipment Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 29.24%.
As of today (2026-07-13), Gudeng Equipment Co's WACC % is 10.29%. Gudeng Equipment Co's ROIC % is 24.78% (calculated using TTM income statement data).
Gudeng Equipment 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.
Gudeng Equipment Co (ROCO:6953) 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, Gudeng Equipment Co's WACC % is 10.29%. Gudeng Equipment Co's ROIC % is 24.78% (calculated using TTM income statement data).
Gudeng Equipment 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.
Gudeng Equipment Co ROIC % Related Terms
Gudeng Equipment Co ROIC % Historical Data
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The historical data trend for Gudeng Equipment 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 Semiconductor Equipment & Materials subindustry, Gudeng Equipment 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.
Gudeng Equipment Co ROIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Gudeng Equipment Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Gudeng Equipment 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.
Gudeng Equipment Co (ROCO:6953) has a ROIC % of 29.24% 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 Gudeng Equipment Co and its competitors.
Is Gudeng Equipment Co's ROIC % too high?
Gudeng Equipment Co's current ROIC % is 29.24%. The Semiconductors industry median ROIC % is 3.77. Gudeng Equipment Co's value of 29.24% is 675.6% above this industry median. Overall, Gudeng Equipment Co has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Gudeng Equipment Co's ROIC % compare to AMAT and LRCX?
Gudeng Equipment Co's ROIC % of 29.24% can be compared against companies in the Semiconductors industry. The industry median ROIC % is 3.77. Gudeng Equipment Co's value of 29.24% is 675.6% 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 1,011 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. Gudeng Equipment Co's current ROIC % of 29.24% is 675.6% 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 Gudeng Equipment Co 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. Gudeng Equipment Co's current ROIC % is 29.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gudeng Equipment Co stock overvalued right now?
Based on GuruFocus' analysis, Gudeng Equipment Co (ROCO:6953) is currently considered Fairly Valued. The stock's GF Value™ is NT$247.72, compared to a current price of NT$228.50 — trading 7.8% below its estimated fair value. The current ROIC % is 29.24% and 675.6% above the Semiconductors industry median of 3.77. Gudeng Equipment Co's overall GF Score™ is 74/100 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 Gudeng Equipment Co (ROCO:6953), the current ROIC % is 29.24% 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 Gudeng Equipment Co (ROCO:6953) Overvalued in 2026?
Based on GuruFocus' analysis, Gudeng Equipment Co stock appears to be undervalued.
The current stock price of NT$228.50 is trading 7.8% below its estimated GF Value™ of NT$247.72.
GuruFocus considers Gudeng Equipment Co to be Fairly Valued.
Key valuation signals for ROCO:6953:
ROIC %: 29.24%
GF Value™: NT$247.72 vs. price of NT$228.50 (7.8% below fair value)
Industry Position: 675.6% above the Semiconductors median
No single metric tells the full story. See the ROCO:6953 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gudeng Equipment Co Ltd is engaged in the sale, repair, and maintenance of precision instruments. Its products include Automatic EIP Inspection Equipment/ EUV Reticle Sidewall Inspection, EUV Lite Exchanger, EUV Reticle Exchanger, EUV Vacuum Cleaner, Reticle Cleaner, Large-Size Reticle Cleaner, Reticle Exchanger, Reticle Cabinet Solution, Reticle Storage Solution, and PVD Technology.
74GF Score
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