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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 %. Senci Electric Machinery Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 8.68%.
As of today (2026-08-06), Senci Electric Machinery Co's WACC % is 14.06%. Senci Electric Machinery Co's ROIC % is 5.99% (calculated using TTM income statement data).
Senci Electric Machinery Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Senci Electric Machinery Co (SHSE:603109) 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, Senci Electric Machinery Co's WACC % is 14.06%. Senci Electric Machinery Co's ROIC % is 5.99% (calculated using TTM income statement data).
Senci Electric Machinery 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.
Senci Electric Machinery Co ROIC % Related Terms
Senci Electric Machinery 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.
For the Specialty Industrial Machinery subindustry, Senci Electric Machinery 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.
Senci Electric Machinery Co ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Senci Electric Machinery Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Senci Electric Machinery Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) 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.
Senci Electric Machinery Co (SHSE:603109) has a ROIC % of 8.68% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Senci Electric Machinery Co and its competitors.
Is Senci Electric Machinery Co's ROIC % too high?
Senci Electric Machinery Co's current ROIC % is 8.68%. The Industrial Products industry median ROIC % is 5.17. Senci Electric Machinery Co's value of 8.68% is 67.9% above this industry median. Overall, Senci Electric Machinery Co has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Senci Electric Machinery Co's ROIC % compare to GEV and ETN?
Senci Electric Machinery Co's ROIC % of 8.68% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.17. Senci Electric Machinery Co's value of 8.68% is 67.9% 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 an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.17, based on 3,026 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. Senci Electric Machinery Co's current ROIC % of 8.68% is 67.9% 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 Senci Electric Machinery Co and its competitors. For the Industrial Products industry, the median ROIC % is 5.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Senci Electric Machinery Co's current ROIC % is 8.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Senci Electric Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Senci Electric Machinery Co (SHSE:603109) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥23.84, compared to a current price of ¥16.97 — trading 28.8% below its estimated fair value. The current ROIC % is 8.68% and 67.9% above the Industrial Products industry median of 5.17. Senci Electric Machinery Co's overall GF Score™ is 85/100 with 6 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 Senci Electric Machinery Co (SHSE:603109), the current ROIC % is 8.68% as of Mar. 2026. 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 Senci Electric Machinery Co (SHSE:603109) Overvalued in 2026?
Based on GuruFocus' analysis, Senci Electric Machinery Co stock appears to be undervalued.
The current stock price of ¥16.97 is trading 28.8% below its estimated GF Value™ of ¥23.84.
GuruFocus considers Senci Electric Machinery Co to be Modestly Undervalued.
Key valuation signals for SHSE:603109:
ROIC %: 8.68%
GF Value™: ¥23.84 vs. price of ¥16.97 (28.8% below fair value)
Industry Position: 67.9% above the Industrial Products median
No single metric tells the full story. See the SHSE:603109 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Senci Electric Machinery Co Ltd engages in research, development, manufacturing and sale of small generators, general gasoline engines and their terminal products. The company manufactures generators, starters, motors, inverters, internal combustion engines, generator sets, air compressors, washing machines, garden machinery and equipment, welding equipment, lighting equipment, uninterruptible power supplies, electronic components, microelectronics , mechatronic products and gasoline and diesel engine parts, power tools, electric vehicle parts, auto parts, motorcycle parts, general machinery, construction machinery and equipment; surface treatment of machine parts; sales of steel, building materials.
85GF Score
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