ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Nan Liu Enterprise Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 2.42%.
As of today (2026-06-29), Nan Liu Enterprise Co's WACC % is 1.94%. Nan Liu Enterprise Co's ROIC % is 0.00% (calculated using TTM income statement data).
Nan Liu Enterprise Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Nan Liu Enterprise Co (TPE:6504) 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, Nan Liu Enterprise Co's WACC % is 1.94%. Nan Liu Enterprise Co's ROIC % is 0.00% (calculated using TTM income statement data).
Nan Liu Enterprise 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.
* 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 Household & Personal Products subindustry, Nan Liu Enterprise 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.
Nan Liu Enterprise Co ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nan Liu Enterprise Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Nan Liu Enterprise 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.
Nan Liu Enterprise Co (TPE:6504) has a ROIC % of 2.42% 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 Nan Liu Enterprise Co and its competitors.
Is Nan Liu Enterprise Co's ROIC % too high?
Nan Liu Enterprise Co's current ROIC % is 2.42%. The Consumer Packaged Goods industry median ROIC % is 5.13. Nan Liu Enterprise Co's value of 2.42% is 52.8% below this industry median. Overall, Nan Liu Enterprise Co has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Nan Liu Enterprise Co's ROIC % compare to PG and CL?
Nan Liu Enterprise Co's ROIC % of 2.42% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.13. Nan Liu Enterprise Co's value of 2.42% is 52.8% 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 Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.13, based on 1,944 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. Nan Liu Enterprise Co's current ROIC % of 2.42% is 52.8% 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 Nan Liu Enterprise Co and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nan Liu Enterprise Co's current ROIC % is 2.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nan Liu Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Nan Liu Enterprise Co (TPE:6504) is currently considered Possible Value Trap. The stock's GF Value™ is NT$76.16, compared to a current price of NT$36.00 — trading 52.7% below its estimated fair value. The current ROIC % is 2.42% and 52.8% below the Consumer Packaged Goods industry median of 5.13. Nan Liu Enterprise Co's overall GF Score™ is 62/100 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 Nan Liu Enterprise Co (TPE:6504), the current ROIC % is 2.42% 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 Nan Liu Enterprise Co (TPE:6504) Overvalued in 2026?
Based on GuruFocus' analysis, Nan Liu Enterprise Co stock appears to be undervalued.
The current stock price of NT$36.00 is trading 52.7% below its estimated GF Value™ of NT$76.16.
GuruFocus considers Nan Liu Enterprise Co to be Possible Value Trap.
Key valuation signals for TPE:6504:
ROIC %: 2.42%
GF Value™: NT$76.16 vs. price of NT$36.00 (52.7% below fair value)
Industry Position: 52.8% below the Consumer Packaged Goods median
No single metric tells the full story. See the TPE:6504 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nan Liu Enterprise Co Ltd is engaged in the manufacture and sales of air-through nonwoven, spunlace non-woven, wet napkins, facial mask and skin care products. Its products include spunlace nonwoven fabric, High-tech spunlace wood pulp composite fabric, pure cotton, and hot-pressed/hot-air nonwoven fabric. Its finished products include wet wipes, face mask, facial mask, and dry towel. Its segments include Nan Liu Enterprise Co., Ltd.; Nanliu Enterprises (Pinghu) Ltd.; Nanliu Manufacturing (India) Private Limited; and Others. Its geographical operations are spread across Taiwan, Mainland China, Japa, India, and Others with majority of revenue contribution from Mainland China.
62GF Score
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