ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Longchen Paper & Packaging Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 1.55%.
As of today (2026-06-29), Longchen Paper & Packaging Co's WACC % is 3.74%. Longchen Paper & Packaging Co's ROIC % is 0.02% (calculated using TTM income statement data).
Longchen Paper & Packaging Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Longchen Paper & Packaging Co (TPE:1909) 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, Longchen Paper & Packaging Co's WACC % is 3.74%. Longchen Paper & Packaging Co's ROIC % is 0.02% (calculated using TTM income statement data).
Longchen Paper & Packaging 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.
Longchen Paper & Packaging Co ROIC % Related Terms
Longchen Paper & Packaging 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.
Longchen Paper & Packaging Co ROIC % Competitor Comparison
For the Paper & Paper Products subindustry, Longchen Paper & Packaging 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.
Longchen Paper & Packaging Co ROIC % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Longchen Paper & Packaging Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Longchen Paper & Packaging 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.
Longchen Paper & Packaging Co (TPE:1909) has a ROIC % of 1.55% 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 Longchen Paper & Packaging Co and its competitors.
Is Longchen Paper & Packaging Co's ROIC % too high?
Longchen Paper & Packaging Co's current ROIC % is 1.55%. The Forest Products industry median ROIC % is 1.55. Longchen Paper & Packaging Co's value of 1.55% is 0% at this industry median. Overall, Longchen Paper & Packaging Co has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Longchen Paper & Packaging Co's ROIC % compare to competitors?
Longchen Paper & Packaging Co's ROIC % of 1.55% can be compared against companies in the Forest Products industry. The industry median ROIC % is 1.55. Longchen Paper & Packaging Co's value of 1.55% is 0% at 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 Forest Products company?
The median ROIC % among Forest Products companies is 1.55, based on 277 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. Longchen Paper & Packaging Co's current ROIC % of 1.55% is 0% at 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 Longchen Paper & Packaging Co and its competitors. For the Forest Products industry, the median ROIC % is 1.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Longchen Paper & Packaging Co's current ROIC % is 1.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Longchen Paper & Packaging Co stock overvalued right now?
Based on GuruFocus' analysis, Longchen Paper & Packaging Co (TPE:1909) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$12.33, compared to a current price of NT$9.46 — trading 23.3% below its estimated fair value. The current ROIC % is 1.55% and 0% at the Forest Products industry median of 1.55. Longchen Paper & Packaging Co's overall GF Score™ is 63/100 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 Longchen Paper & Packaging Co (TPE:1909), the current ROIC % is 1.55% 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 Longchen Paper & Packaging Co (TPE:1909) Overvalued in 2026?
Based on GuruFocus' analysis, Longchen Paper & Packaging Co stock appears to be undervalued.
The current stock price of NT$9.46 is trading 23.3% below its estimated GF Value™ of NT$12.33.
GuruFocus considers Longchen Paper & Packaging Co to be Modestly Undervalued.
Key valuation signals for TPE:1909:
ROIC %: 1.55%
GF Value™: NT$12.33 vs. price of NT$9.46 (23.3% below fair value)
Industry Position: 0% at the Forest Products median
No single metric tells the full story. See the TPE:1909 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Longchen Paper & Packaging Co Business Description
Longchen Paper & Packaging Co Ltd is engaged in manufacturing, processing, and trading paper raw materials; manufacturing, printing, processing and trading of corrugated containers; and recycling/renewal of energy and resources, including turnkey design, trial-run and operation of cogeneration and incinerator systems. Its segments include Containerboard: manufacturing and sales of Containerboard; Corrugated container: manufacturing and sale of paper machines; Wastepaper: procurement and sale of wastepaper; and Others: public wastewater treatment and general administration in the Group. It derives majority of the revenue from Containerboard segment.
63GF Score
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