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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Excellence Optoelectronics Holding Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 6.78%.
Excellence Optoelectronics Holding Co (TPE:3717) 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, Excellence Optoelectronics Holding Co's WACC % is 7.38%. Excellence Optoelectronics Holding Co's ROIC % is 1.09% (calculated using TTM income statement data).
Excellence Optoelectronics Holding 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.
Excellence Optoelectronics Holding Co ROIC % Related Terms
Excellence Optoelectronics Holding 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.
Excellence Optoelectronics Holding Co ROIC % Chart
Excellence Optoelectronics Holding Co Annual Data
Trend
Dec24
Dec25
ROIC %
0.30
1.39
Excellence Optoelectronics Holding Co Quarterly Data
Sep24
Dec24
Sep25
Dec25
ROIC %
0.00
-1.16
-1.08
6.78
TPE:3717 vs APH, GLW: ROIC % Comparison
For the Electronic Components subindustry, Excellence Optoelectronics Holding 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.
Excellence Optoelectronics Holding Co ROIC % vs Hardware 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.
Excellence Optoelectronics Holding Co (TPE:3717) has a ROIC % of 6.78% 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 Excellence Optoelectronics Holding Co and its competitors.
Is Excellence Optoelectronics Holding Co's ROIC % too high?
Excellence Optoelectronics Holding Co's current ROIC % is 6.78%. The Hardware industry median ROIC % is 4.12. Excellence Optoelectronics Holding Co's value of 6.78% is 64.6% above this industry median. Overall, Excellence Optoelectronics Holding Co has a GF Score™ of 2/100, reflecting its overall financial health beyond just this single metric.
How does Excellence Optoelectronics Holding Co's ROIC % compare to APH and GLW?
Excellence Optoelectronics Holding Co's ROIC % of 6.78% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.12. Excellence Optoelectronics Holding Co's value of 6.78% is 64.6% 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 Hardware company?
The median ROIC % among Hardware companies is 4.12, based on 2,451 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. Excellence Optoelectronics Holding Co's current ROIC % of 6.78% is 64.6% 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 Excellence Optoelectronics Holding Co 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. Excellence Optoelectronics Holding Co's current ROIC % is 6.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Excellence Optoelectronics Holding Co stock overvalued right now?
Excellence Optoelectronics Holding Co (TPE:3717) has a current ROIC % of 6.78%. The current ROIC % is 6.78% and 64.6% above the Hardware industry median of 4.12. Excellence Optoelectronics Holding Co's overall GF Score™ is 2/100 with 3 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 Excellence Optoelectronics Holding Co (TPE:3717), the current ROIC % is 6.78% 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.
Excellence Optoelectronics Holding Co Business Description
Excellence Optoelectronics Holding Co is a high technology-oriented company. It is a professional LED lamp manufacturer producing top quality of Super High Brightness LED lamps with AlInGaP and InGaN chip materials. It's subsidiaries nclude the design, development, testing, manufacturing of LED components, OEM/ODM LED modules and patented solution for the automotive market; LED traffic signals, LED street lighting, industrial lighting and LED consumer products for the energy-saving market; and the design, installation and construction of energy-saving products for government and public sector projects.
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