ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Chipsea Technologies Shenzhen's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -12.07%.
As of today (2026-07-05), Chipsea Technologies Shenzhen's WACC % is 13.14%. Chipsea Technologies Shenzhen's ROIC % is -7.72% (calculated using TTM income statement data).
Chipsea Technologies Shenzhen earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Chipsea Technologies Shenzhen's WACC % is 13.14%. Chipsea Technologies Shenzhen's ROIC % is -7.72% (calculated using TTM income statement data).
Chipsea Technologies Shenzhen 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.
Chipsea Technologies Shenzhen ROIC % Related Terms
Chipsea Technologies Shenzhen 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.
SHSE:688595 vs AMAT, LRCX, KLAC: ROIC % Comparison
For the Semiconductor Equipment & Materials subindustry, Chipsea Technologies Shenzhen'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.
Chipsea Technologies Shenzhen ROIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Chipsea Technologies Shenzhen's ROIC % distribution charts can be found below:
* The bar in red indicates where Chipsea Technologies Shenzhen'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.
Chipsea Technologies Shenzhen (SHSE:688595) has a ROIC % of -12.07% 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 Chipsea Technologies Shenzhen and its competitors.
Is Chipsea Technologies Shenzhen's ROIC % too high?
Chipsea Technologies Shenzhen's current ROIC % is -12.07%. Overall, Chipsea Technologies Shenzhen has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chipsea Technologies Shenzhen's ROIC % compare to AMAT and LRCX?
Chipsea Technologies Shenzhen's ROIC % of -12.07% can be compared against companies in the Semiconductors industry. The industry median ROIC % is 3.77. 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. 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 Chipsea Technologies Shenzhen 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. Chipsea Technologies Shenzhen's current ROIC % is -12.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chipsea Technologies Shenzhen stock overvalued right now?
Based on GuruFocus' analysis, Chipsea Technologies Shenzhen (SHSE:688595) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥54.74, compared to a current price of ¥40.04 — trading 26.9% below its estimated fair value. The current ROIC % is -12.07%. Chipsea Technologies Shenzhen's overall GF Score™ is 74/100 with 4 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 Chipsea Technologies Shenzhen (SHSE:688595), the current ROIC % is -12.07% 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 Chipsea Technologies Shenzhen (SHSE:688595) Overvalued in 2026?
Based on GuruFocus' analysis, Chipsea Technologies Shenzhen stock appears to be undervalued.
The current stock price of ¥40.04 is trading 26.9% below its estimated GF Value™ of ¥54.74.
GuruFocus considers Chipsea Technologies Shenzhen to be Modestly Undervalued.
Key valuation signals for SHSE:688595:
ROIC %: -12.07%
GF Value™: ¥54.74 vs. price of ¥40.04 (26.9% below fair value)
No single metric tells the full story. See the SHSE:688595 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chipsea Technologies Shenzhen Business Description
Chipsea Technologies Shenzhen Corp Ltd is a full-signal chain chip design company integrating perception, calculation, and control. It focuses on the research and development of high-precision Analog-to-digital converters, high-performance microcontroller units, measurement algorithms and one-stop solutions for the Internet of Things. The company's products and solutions are widely used in smart health, pressure touch, smart home perception, industrial measurement, general-purpose microcontrollers and other fields.
74GF Score
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