ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Yung Chi Paint & Varnish Mfg Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 9.90%.
As of today (2026-07-11), Yung Chi Paint & Varnish Mfg Co's WACC % is 4.76%. Yung Chi Paint & Varnish Mfg Co's ROIC % is 11.03% (calculated using TTM income statement data).
Yung Chi Paint & Varnish Mfg 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.
Yung Chi Paint & Varnish Mfg Co (TPE:1726) 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, Yung Chi Paint & Varnish Mfg Co's WACC % is 4.76%. Yung Chi Paint & Varnish Mfg Co's ROIC % is 11.03% (calculated using TTM income statement data).
Yung Chi Paint & Varnish Mfg 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.
Yung Chi Paint & Varnish Mfg Co ROIC % Related Terms
Yung Chi Paint & Varnish Mfg 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 Chemicals subindustry, Yung Chi Paint & Varnish Mfg 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.
Yung Chi Paint & Varnish Mfg Co ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Yung Chi Paint & Varnish Mfg Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Yung Chi Paint & Varnish Mfg 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.
Yung Chi Paint & Varnish Mfg Co (TPE:1726) has a ROIC % of 9.90% 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 Yung Chi Paint & Varnish Mfg Co and its competitors.
Is Yung Chi Paint & Varnish Mfg Co's ROIC % too high?
Yung Chi Paint & Varnish Mfg Co's current ROIC % is 9.90%. The Chemicals industry median ROIC % is 4.47. Yung Chi Paint & Varnish Mfg Co's value of 9.90% is 121.5% above this industry median. Overall, Yung Chi Paint & Varnish Mfg Co has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Yung Chi Paint & Varnish Mfg Co's ROIC % compare to LIN and SHW?
Yung Chi Paint & Varnish Mfg Co's ROIC % of 9.90% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.47. Yung Chi Paint & Varnish Mfg Co's value of 9.90% is 121.5% 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.47, based on 1,576 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. Yung Chi Paint & Varnish Mfg Co's current ROIC % of 9.90% is 121.5% 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 Yung Chi Paint & Varnish Mfg Co and its competitors. For the Chemicals industry, the median ROIC % is 4.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yung Chi Paint & Varnish Mfg Co's current ROIC % is 9.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yung Chi Paint & Varnish Mfg Co stock overvalued right now?
Based on GuruFocus' analysis, Yung Chi Paint & Varnish Mfg Co (TPE:1726) is currently considered Fairly Valued. The stock's GF Value™ is NT$77.15, compared to a current price of NT$78.80 — trading 2.1% above its estimated fair value. The current ROIC % is 9.90% and 121.5% above the Chemicals industry median of 4.47. Yung Chi Paint & Varnish Mfg Co's overall GF Score™ is 86/100 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 Yung Chi Paint & Varnish Mfg Co (TPE:1726), the current ROIC % is 9.90% 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 Yung Chi Paint & Varnish Mfg Co (TPE:1726) Overvalued in 2026?
Based on GuruFocus' analysis, Yung Chi Paint & Varnish Mfg Co stock appears to be overvalued.
The current stock price of NT$78.80 is trading 2.1% above its estimated GF Value™ of NT$77.15.
GuruFocus considers Yung Chi Paint & Varnish Mfg Co to be Fairly Valued.
Key valuation signals for TPE:1726:
ROIC %: 9.90%
GF Value™: NT$77.15 vs. price of NT$78.80 (2.1% above fair value)
Industry Position: 121.5% above the Chemicals median
No single metric tells the full story. See the TPE:1726 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yung Chi Paint & Varnish Mfg Co Business Description
Yung Chi Paint & Varnish Mfg Co Ltd is mainly engaged in the manufacture and sale of paints and coatings and the undertaking of painting projects. The company operates in two segments: the Paint Business Department, which is mainly engaged in the manufacture and sale of various paint products, and the Coating Engineering Department, engaged in the business of painting projects and structural coating or restoration. The company derives the majority of its revenue from the Paint business segment.
86GF Score
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