ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Horng Terng Automation Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 66.11%.
As of today (2026-07-07), Horng Terng Automation Co's WACC % is 10.48%. Horng Terng Automation Co's ROIC % is 64.75% (calculated using TTM income statement data).
Horng Terng Automation 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.
Horng Terng Automation Co (ROCO:7751) 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, Horng Terng Automation Co's WACC % is 10.48%. Horng Terng Automation Co's ROIC % is 64.75% (calculated using TTM income statement data).
Horng Terng Automation 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.
* 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, Horng Terng Automation 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.
Horng Terng Automation Co ROIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Horng Terng Automation Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Horng Terng Automation 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.
Horng Terng Automation Co (ROCO:7751) has a ROIC % of 66.11% 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 Horng Terng Automation Co and its competitors.
Is Horng Terng Automation Co's ROIC % too high?
Horng Terng Automation Co's current ROIC % is 66.11%. The Semiconductors industry median ROIC % is 3.77. Horng Terng Automation Co's value of 66.11% is 1653.6% above this industry median. Overall, Horng Terng Automation Co has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does Horng Terng Automation Co's ROIC % compare to AMAT and LRCX?
Horng Terng Automation Co's ROIC % of 66.11% can be compared against companies in the Semiconductors industry. The industry median ROIC % is 3.77. Horng Terng Automation Co's value of 66.11% is 1653.6% 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 1,009 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. Horng Terng Automation Co's current ROIC % of 66.11% is 1653.6% 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 Horng Terng Automation 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. Horng Terng Automation Co's current ROIC % is 66.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Horng Terng Automation Co stock overvalued right now?
Horng Terng Automation Co (ROCO:7751) has a current ROIC % of 66.11%. The current ROIC % is 66.11% and 1653.6% above the Semiconductors industry median of 3.77. Horng Terng Automation Co's overall GF Score™ is 25/100 with 1 warning sign 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 Horng Terng Automation Co (ROCO:7751), the current ROIC % is 66.11% 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.
Horng Terng Automation Co Ltd is a Company that concentrates all its efforts on continuous research and development and upgrading of skills, providing complete technologies and equipment to customers, and providing customized equipment development and design, detection efficiency improvement, equipment integration and application, and other immediate and complete solutions based on customer development trends. The Company generates revenue from the research and development, manufacturing, and sale of semiconductor automation equipment. It mainly focuses on the R&D, production, and sale of semiconductor automation equipment.
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