ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Shanghai Fudan Microelectronics Group Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 12.15%.
Shanghai Fudan Microelectronics Group Co (OTCPK:SFDMY) 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, Shanghai Fudan Microelectronics Group Co's WACC % is 17.26%. Shanghai Fudan Microelectronics Group Co's ROIC % is 9.62% (calculated using TTM income statement data).
Shanghai Fudan Microelectronics Group 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.
Shanghai Fudan Microelectronics Group Co ROIC % Related Terms
Shanghai Fudan Microelectronics Group 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.
Shanghai Fudan Microelectronics Group Co ROIC % Chart
Shanghai Fudan Microelectronics Group Co Annual Data
For the Semiconductors subindustry, Shanghai Fudan Microelectronics Group 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.
Shanghai Fudan Microelectronics Group Co ROIC % vs Semiconductors Industry
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.
Shanghai Fudan Microelectronics Group Co (SFDMY) has a ROIC % of 12.15% 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 Shanghai Fudan Microelectronics Group Co and its competitors.
Is Shanghai Fudan Microelectronics Group Co's ROIC % too high?
Shanghai Fudan Microelectronics Group Co's current ROIC % is 12.15%. The Semiconductors industry median ROIC % is 3.74. Shanghai Fudan Microelectronics Group Co's value of 12.15% is 224.9% above this industry median. Overall, Shanghai Fudan Microelectronics Group Co has a GF Score™ of 94/100, reflecting its overall financial health beyond just this single metric.
How does Shanghai Fudan Microelectronics Group Co's ROIC % compare to NVDA and AVGO?
Shanghai Fudan Microelectronics Group Co's ROIC % of 12.15% can be compared against companies in the Semiconductors industry. The industry median ROIC % is 3.74. Shanghai Fudan Microelectronics Group Co's value of 12.15% is 224.9% 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 3.74, based on 1,012 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. Shanghai Fudan Microelectronics Group Co's current ROIC % of 12.15% is 224.9% 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 Shanghai Fudan Microelectronics Group Co and its competitors. For the Semiconductors industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Fudan Microelectronics Group Co's current ROIC % is 12.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Fudan Microelectronics Group Co stock overvalued right now?
Shanghai Fudan Microelectronics Group Co (SFDMY) has a current ROIC % of 12.15%. The stock's GF Value™ is $41.71, compared to a current price of $49.75 — trading 19.3% above its estimated fair value. The current ROIC % is 12.15% and 224.9% above the Semiconductors industry median of 3.74. Shanghai Fudan Microelectronics Group Co's overall GF Score™ is 94/100 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 Shanghai Fudan Microelectronics Group Co (SFDMY), the current ROIC % is 12.15% 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 Shanghai Fudan Microelectronics Group Co (SFDMY) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Fudan Microelectronics Group Co stock appears to be overvalued.
The current stock price of $49.75 is trading 19.3% above its estimated GF Value™ of $41.71.
Key valuation signals for SFDMY:
ROIC %: 12.15%
GF Value™: $41.71 vs. price of $49.75 (19.3% above fair value)
Industry Position: 224.9% above the Semiconductors median
No single metric tells the full story. See the SFDMY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Fudan Microelectronics Group Co Business Description
Shanghai Fudan Microelectronics Group Co Ltd is a China-based company. Along with its subsidiaries, it is engaged in the design, development, and sale of integrated circuit products; and integrated circuit product testing services. The company is organised into business units based on products and services and has two reportable segments as follows: The design, development and sale of IC products segment (Design segment): Production of security and identification chips, non-volatile memory, smart meter chips, FPGAs, and other chips; and The provision of testing services for the IC products segment (Testing segment): IC chip and IC product testing services.
94GF Score
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