ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Hiwin Mikrosystem's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 7.43%.
As of today (2026-07-04), Hiwin Mikrosystem's WACC % is 2.93%. Hiwin Mikrosystem's ROIC % is 5.86% (calculated using TTM income statement data).
Hiwin Mikrosystem 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.
Hiwin Mikrosystem (TPE:4576) 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, Hiwin Mikrosystem's WACC % is 2.93%. Hiwin Mikrosystem's ROIC % is 5.86% (calculated using TTM income statement data).
Hiwin Mikrosystem 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.
Hiwin Mikrosystem ROIC % Related Terms
Hiwin Mikrosystem ROIC % Historical Data
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The historical data trend for Hiwin Mikrosystem's ROIC % can be seen below:
* 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 Electrical Equipment & Parts subindustry, Hiwin Mikrosystem'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.
Hiwin Mikrosystem ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hiwin Mikrosystem's ROIC % distribution charts can be found below:
* The bar in red indicates where Hiwin Mikrosystem'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.
Hiwin Mikrosystem (TPE:4576) has a ROIC % of 7.43% 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 Hiwin Mikrosystem and its competitors.
Is Hiwin Mikrosystem's ROIC % too high?
Hiwin Mikrosystem's current ROIC % is 7.43%. The Industrial Products industry median ROIC % is 5.21. Hiwin Mikrosystem's value of 7.43% is 42.6% above this industry median. Overall, Hiwin Mikrosystem has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hiwin Mikrosystem's ROIC % compare to VRT and BE?
Hiwin Mikrosystem's ROIC % of 7.43% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.21. Hiwin Mikrosystem's value of 7.43% is 42.6% 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 an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.21, based on 3,033 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. Hiwin Mikrosystem's current ROIC % of 7.43% is 42.6% 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 Hiwin Mikrosystem and its competitors. For the Industrial Products industry, the median ROIC % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hiwin Mikrosystem's current ROIC % is 7.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hiwin Mikrosystem stock overvalued right now?
Based on GuruFocus' analysis, Hiwin Mikrosystem (TPE:4576) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$125.29, compared to a current price of NT$222.50 — trading 77.6% above its estimated fair value. The current ROIC % is 7.43% and 42.6% above the Industrial Products industry median of 5.21. Hiwin Mikrosystem's overall GF Score™ is 64/100 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 Hiwin Mikrosystem (TPE:4576), the current ROIC % is 7.43% 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 Hiwin Mikrosystem (TPE:4576) Overvalued in 2026?
Based on GuruFocus' analysis, Hiwin Mikrosystem stock appears to be overvalued.
The current stock price of NT$222.50 is trading 77.6% above its estimated GF Value™ of NT$125.29.
GuruFocus considers Hiwin Mikrosystem to be Significantly Overvalued.
Key valuation signals for TPE:4576:
ROIC %: 7.43%
GF Value™: NT$125.29 vs. price of NT$222.50 (77.6% above fair value)
Industry Position: 42.6% above the Industrial Products median
No single metric tells the full story. See the TPE:4576 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hiwin Mikrosystem Corp is engaged in manufacturing, repairing, and selling a variety of motors, drives, and automation systems. Its product offerings include ballscrews, rolled ballscrews, precision linear guideways, rotary motors, and single-axis motors, among others. Its products can be applied in semiconductor equipment, optical component manufacturing equipment, automation equipment, Medicare and healthcare equipment, rehabilitation equipment, and transportation. The company's reportable segments are precision motion and control parts, micro and nano-positioning systems and others. The majority of revenue is derived from the micro and nano-positioning systems segment. Geographically, the maximum revenue is generated from Taiwan.
64GF Score
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