ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Chaintech Technology's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 0.79%.
As of today (2026-06-25), Chaintech Technology's WACC % is 5.39%. Chaintech Technology's ROIC % is -0.43% (calculated using TTM income statement data).
Chaintech Technology 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, Chaintech Technology's WACC % is 5.39%. Chaintech Technology's ROIC % is -0.43% (calculated using TTM income statement data).
Chaintech Technology 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.
* 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 Computer Hardware subindustry, Chaintech Technology'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.
Chaintech Technology ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, Chaintech Technology's ROIC % distribution charts can be found below:
* The bar in red indicates where Chaintech Technology'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.
Chaintech Technology (TPE:2425) has a ROIC % of 0.79% 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 Chaintech Technology and its competitors.
Is Chaintech Technology's ROIC % too high?
Chaintech Technology's current ROIC % is 0.79%. The Hardware industry median ROIC % is 4.12. Chaintech Technology's value of 0.79% is 80.8% below this industry median. Overall, Chaintech Technology has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chaintech Technology's ROIC % compare to DELL and SNDK?
Chaintech Technology's ROIC % of 0.79% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.12. Chaintech Technology's value of 0.79% is 80.8% below 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 Hardware company?
The median ROIC % among Hardware companies is 4.12, based on 2,443 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. Chaintech Technology's current ROIC % of 0.79% is 80.8% below 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 Chaintech Technology and its competitors. For the Hardware industry, the median ROIC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chaintech Technology's current ROIC % is 0.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chaintech Technology stock overvalued right now?
Based on GuruFocus' analysis, Chaintech Technology (TPE:2425) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$29.81, compared to a current price of NT$42.35 — trading 42.1% above its estimated fair value. The current ROIC % is 0.79% and 80.8% below the Hardware industry median of 4.12. Chaintech Technology's overall GF Score™ is 65/100 with 10 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 Chaintech Technology (TPE:2425), the current ROIC % is 0.79% 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 Chaintech Technology (TPE:2425) Overvalued in 2026?
Based on GuruFocus' analysis, Chaintech Technology stock appears to be overvalued.
The current stock price of NT$42.35 is trading 42.1% above its estimated GF Value™ of NT$29.81.
GuruFocus considers Chaintech Technology to be Significantly Overvalued.
Key valuation signals for TPE:2425:
ROIC %: 0.79%
GF Value™: NT$29.81 vs. price of NT$42.35 (42.1% above fair value)
Industry Position: 80.8% below the Hardware median
No single metric tells the full story. See the TPE:2425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chaintech Technology Corp is principally engaged in the business of buying and selling and manufacturing of motherboards, display cards, and computer peripherals. The company has reportable segments, namely, Consumer goods, AI servers and related products. The majority of revenue is derived from the AI servers and related products. Geographically, the company generates a majority of its revenue from China and the rest from Taiwan.
65GF Score
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