ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Lumax International's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 13.02%.
As of today (2026-06-30), Lumax International's WACC % is 3.55%. Lumax International's ROIC % is 14.56% (calculated using TTM income statement data).
Lumax International 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.
Lumax International (TPE:6192) 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, Lumax International's WACC % is 3.55%. Lumax International's ROIC % is 14.56% (calculated using TTM income statement data).
Lumax International 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.
Lumax International ROIC % Related Terms
Lumax International ROIC % Historical Data
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The historical data trend for Lumax International'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 Industrial Distribution subindustry, Lumax International'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.
Lumax International ROIC % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Lumax International's ROIC % distribution charts can be found below:
* The bar in red indicates where Lumax International'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.
Lumax International (TPE:6192) has a ROIC % of 13.02% 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 Lumax International and its competitors.
Is Lumax International's ROIC % too high?
Lumax International's current ROIC % is 13.02%. The Industrial Distribution industry median ROIC % is 6.21. Lumax International's value of 13.02% is 109.7% above this industry median. Overall, Lumax International has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lumax International's ROIC % compare to GWW and FAST?
Lumax International's ROIC % of 13.02% can be compared against companies in the Industrial Distribution industry. The industry median ROIC % is 6.21. Lumax International's value of 13.02% is 109.7% 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 Distribution company?
The median ROIC % among Industrial Distribution companies is 6.21, based on 155 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. Lumax International's current ROIC % of 13.02% is 109.7% 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 Lumax International and its competitors. For the Industrial Distribution industry, the median ROIC % is 6.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumax International's current ROIC % is 13.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lumax International stock overvalued right now?
Based on GuruFocus' analysis, Lumax International (TPE:6192) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$102.74, compared to a current price of NT$121.50 — trading 18.3% above its estimated fair value. The current ROIC % is 13.02% and 109.7% above the Industrial Distribution industry median of 6.21. Lumax International's overall GF Score™ is 90/100 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 Lumax International (TPE:6192), the current ROIC % is 13.02% 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 Lumax International (TPE:6192) Overvalued in 2026?
Based on GuruFocus' analysis, Lumax International stock appears to be overvalued.
The current stock price of NT$121.50 is trading 18.3% above its estimated GF Value™ of NT$102.74.
GuruFocus considers Lumax International to be Modestly Overvalued.
Key valuation signals for TPE:6192:
ROIC %: 13.02%
GF Value™: NT$102.74 vs. price of NT$121.50 (18.3% above fair value)
Industry Position: 109.7% above the Industrial Distribution median
No single metric tells the full story. See the TPE:6192 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lumax International Corp Ltd is engaged in the trading of electronic components and process control equipment, the integration of process control systems, and the provision of related maintenance services. It provides goods or services in the following reportable segments: Process control instrument - department A; Process control system - department B; Telecommunication system - department C; Electronics component - department D; and Other process control - department CN. Maximum revenue is derived from the Process control division, which provides hardware products for calibration, inspection, and maintenance of control valves, switch valves, measurement instruments, analyzing instruments, etc. Geographically, it generates maximum revenue from Taiwan, followed by China, and other markets.
90GF Score
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