ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Yuen Chang Stainless Steel Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 4.56%.
As of today (2026-07-08), Yuen Chang Stainless Steel Co's WACC % is 3.58%. Yuen Chang Stainless Steel Co's ROIC % is 3.85% (calculated using TTM income statement data).
Yuen Chang Stainless Steel 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.
Yuen Chang Stainless Steel Co (TPE:2069) 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, Yuen Chang Stainless Steel Co's WACC % is 3.58%. Yuen Chang Stainless Steel Co's ROIC % is 3.85% (calculated using TTM income statement data).
Yuen Chang Stainless Steel 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.
Yuen Chang Stainless Steel Co ROIC % Related Terms
Yuen Chang Stainless Steel 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 Steel subindustry, Yuen Chang Stainless Steel 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.
Yuen Chang Stainless Steel Co ROIC % vs Steel Industry
For the Steel industry and Basic Materials sector, Yuen Chang Stainless Steel Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Yuen Chang Stainless Steel 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.
Yuen Chang Stainless Steel Co (TPE:2069) has a ROIC % of 4.56% 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 Yuen Chang Stainless Steel Co and its competitors.
Is Yuen Chang Stainless Steel Co's ROIC % too high?
Yuen Chang Stainless Steel Co's current ROIC % is 4.56%. The Steel industry median ROIC % is 2.55. Yuen Chang Stainless Steel Co's value of 4.56% is 78.8% above this industry median. Overall, Yuen Chang Stainless Steel Co has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Yuen Chang Stainless Steel Co's ROIC % compare to NUE and STLD?
Yuen Chang Stainless Steel Co's ROIC % of 4.56% can be compared against companies in the Steel industry. The industry median ROIC % is 2.55. Yuen Chang Stainless Steel Co's value of 4.56% is 78.8% 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 Steel company?
The median ROIC % among Steel companies is 2.55, based on 620 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. Yuen Chang Stainless Steel Co's current ROIC % of 4.56% is 78.8% 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 Yuen Chang Stainless Steel Co and its competitors. For the Steel industry, the median ROIC % is 2.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yuen Chang Stainless Steel Co's current ROIC % is 4.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yuen Chang Stainless Steel Co stock overvalued right now?
Based on GuruFocus' analysis, Yuen Chang Stainless Steel Co (TPE:2069) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$14.11, compared to a current price of NT$18.25 — trading 29.3% above its estimated fair value. The current ROIC % is 4.56% and 78.8% above the Steel industry median of 2.55. Yuen Chang Stainless Steel Co's overall GF Score™ is 65/100 with 7 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 Yuen Chang Stainless Steel Co (TPE:2069), the current ROIC % is 4.56% 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 Yuen Chang Stainless Steel Co (TPE:2069) Overvalued in 2026?
Based on GuruFocus' analysis, Yuen Chang Stainless Steel Co stock appears to be overvalued.
The current stock price of NT$18.25 is trading 29.3% above its estimated GF Value™ of NT$14.11.
GuruFocus considers Yuen Chang Stainless Steel Co to be Modestly Overvalued.
Key valuation signals for TPE:2069:
ROIC %: 4.56%
GF Value™: NT$14.11 vs. price of NT$18.25 (29.3% above fair value)
No single metric tells the full story. See the TPE:2069 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yuen Chang Stainless Steel Co Business Description
Yuen Chang Stainless Steel Co Ltd specializes in stainless steel processing and manufacturing. The company, together with its subsidiaries, is mainly involved in stainless steel shearing, splitting, surface finishing, processing, trading, and the import and export of stainless steel products. Geographically, it derives maximum revenue from Asia (excluding Taiwan), followed by the Americas, Taiwan, and other regions.
65GF Score
Get the complete analysis for TPE:2069
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:2069 has been successfully added to your 
