ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Standard Chemical & Pharmaceutical Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 13.52%.
As of today (2026-07-12), Standard Chemical & Pharmaceutical Co's WACC % is 5.92%. Standard Chemical & Pharmaceutical Co's ROIC % is 13.95% (calculated using TTM income statement data).
Standard Chemical & Pharmaceutical 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.
Standard Chemical & Pharmaceutical Co (TPE:1720) 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, Standard Chemical & Pharmaceutical Co's WACC % is 5.92%. Standard Chemical & Pharmaceutical Co's ROIC % is 13.95% (calculated using TTM income statement data).
Standard Chemical & Pharmaceutical 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.
Standard Chemical & Pharmaceutical Co ROIC % Related Terms
Standard Chemical & Pharmaceutical 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.
Standard Chemical & Pharmaceutical Co ROIC % Chart
For the Drug Manufacturers - Specialty & Generic subindustry, Standard Chemical & Pharmaceutical 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.
Standard Chemical & Pharmaceutical Co ROIC % vs Drug Manufacturers 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.
Standard Chemical & Pharmaceutical Co (TPE:1720) has a ROIC % of 13.52% 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 Standard Chemical & Pharmaceutical Co and its competitors.
Is Standard Chemical & Pharmaceutical Co's ROIC % too high?
Standard Chemical & Pharmaceutical Co's current ROIC % is 13.52%. The Drug Manufacturers industry median ROIC % is 4.50. Standard Chemical & Pharmaceutical Co's value of 13.52% is 200.8% above this industry median. Overall, Standard Chemical & Pharmaceutical Co has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Standard Chemical & Pharmaceutical Co's ROIC % compare to ZTS and UTHR?
Standard Chemical & Pharmaceutical Co's ROIC % of 13.52% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.50. Standard Chemical & Pharmaceutical Co's value of 13.52% is 200.8% 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 Drug Manufacturers company?
The median ROIC % among Drug Manufacturers companies is 4.50, based on 986 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. Standard Chemical & Pharmaceutical Co's current ROIC % of 13.52% is 200.8% 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 Standard Chemical & Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Standard Chemical & Pharmaceutical Co's current ROIC % is 13.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Standard Chemical & Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Standard Chemical & Pharmaceutical Co (TPE:1720) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$70.93, compared to a current price of NT$63.90 — trading 9.9% below its estimated fair value. The current ROIC % is 13.52% and 200.8% above the Drug Manufacturers industry median of 4.50. Standard Chemical & Pharmaceutical Co's overall GF Score™ is 95/100 with 2 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 Standard Chemical & Pharmaceutical Co (TPE:1720), the current ROIC % is 13.52% 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 Standard Chemical & Pharmaceutical Co (TPE:1720) Overvalued in 2026?
Based on GuruFocus' analysis, Standard Chemical & Pharmaceutical Co stock appears to be undervalued.
The current stock price of NT$63.90 is trading 9.9% below its estimated GF Value™ of NT$70.93.
GuruFocus considers Standard Chemical & Pharmaceutical Co to be Modestly Undervalued.
Key valuation signals for TPE:1720:
ROIC %: 13.52%
GF Value™: NT$70.93 vs. price of NT$63.90 (9.9% below fair value)
Industry Position: 200.8% above the Drug Manufacturers median
No single metric tells the full story. See the TPE:1720 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Standard Chemical & Pharmaceutical Co Business Description
Standard Chemical & Pharmaceutical Co Ltd is engaged in the manufacturing and sales of Chinese and western medicine, cosmetics, beverage, normal instruments and medical instruments. Its segments include Medicine, Dietary supplement and Ingredients. The majority of the revenue is derived from the Medicine segment. Geographically it operates in Taiwan, Japan and Others with Taiwan generating the maximum revenue.
95GF Score
Get the complete analysis for TPE:1720
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TPE:1720 has been successfully added to your 
