ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Apogee Optocom Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 7.40%.
As of today (2026-06-30), Apogee Optocom Co's WACC % is -2.25%. Apogee Optocom Co's ROIC % is -3.43% (calculated using TTM income statement data).
Apogee Optocom Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Apogee Optocom Co (TPE:6426) 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, Apogee Optocom Co's WACC % is -2.25%. Apogee Optocom Co's ROIC % is -3.43% (calculated using TTM income statement data).
Apogee Optocom 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.
Apogee Optocom Co ROIC % Related Terms
Apogee Optocom Co ROIC % Historical Data
* Premium members only.
The historical data trend for Apogee Optocom Co'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 Communication Equipment subindustry, Apogee Optocom 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.
Apogee Optocom Co ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, Apogee Optocom Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Apogee Optocom 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.
Apogee Optocom Co (TPE:6426) has a ROIC % of 7.40% 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 Apogee Optocom Co and its competitors.
Is Apogee Optocom Co's ROIC % too high?
Apogee Optocom Co's current ROIC % is 7.40%. The Hardware industry median ROIC % is 4.10. Apogee Optocom Co's value of 7.40% is 80.5% above this industry median. Overall, Apogee Optocom Co has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Apogee Optocom Co's ROIC % compare to CSCO and CIEN?
Apogee Optocom Co's ROIC % of 7.40% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.10. Apogee Optocom Co's value of 7.40% is 80.5% 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 4.10, based on 2,448 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. Apogee Optocom Co's current ROIC % of 7.40% is 80.5% 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 Apogee Optocom Co and its competitors. For the Hardware industry, the median ROIC % is 4.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Apogee Optocom Co's current ROIC % is 7.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Apogee Optocom Co stock overvalued right now?
Based on GuruFocus' analysis, Apogee Optocom Co (TPE:6426) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$88.88, compared to a current price of NT$190.00 — trading 113.8% above its estimated fair value. The current ROIC % is 7.40% and 80.5% above the Hardware industry median of 4.10. Apogee Optocom Co's overall GF Score™ is 59/100 with 2 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 Apogee Optocom Co (TPE:6426), the current ROIC % is 7.40% 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 Apogee Optocom Co (TPE:6426) Overvalued in 2026?
Based on GuruFocus' analysis, Apogee Optocom Co stock appears to be overvalued.
The current stock price of NT$190.00 is trading 113.8% above its estimated GF Value™ of NT$88.88.
GuruFocus considers Apogee Optocom Co to be Significantly Overvalued.
Key valuation signals for TPE:6426:
ROIC %: 7.40%
GF Value™: NT$88.88 vs. price of NT$190.00 (113.8% above fair value)
Industry Position: 80.5% above the Hardware median
No single metric tells the full story. See the TPE:6426 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Apogee Optocom Co Ltd is a communication component manufacturer based in Taiwan. Its product offerings mainly include thin-film filters for active optical communication components (E-PON, G-PON) and thin-film filters for passive optical communication components (CWDM, DWDM). Additionally, Group is involved in optical and functional thin film processing, and offers optical filters for 1.6T Gbps optical communication modules, co-packaged optics coating applications, and bandpass filters for mid-infrared (MIR) sensors. It also offers measurement instruments like white light interferometers, spectrometers, and mid and far-infrared spectrometers. The Group's reportable operating segments are: the parent company, which derives key revenue, and Subsidiary. Geographically, its key market is China.
59GF Score
Get the complete analysis for TPE:6426
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:6426 has been successfully added to your 
