Chin Hsin Environ Engineering Co (TPE:6951) ROIC %: 32.30% (As of Dec. 2025)


TPE:6951 Chin Hsin Environ Engineering Co Ltd TPE:6951
74 GF Score
Price NT$69.62
GF Value NT$79.47
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Chin Hsin Environ Engineering Co ROIC %?

Chin Hsin Environ Engineering Co TPE:6951 74 ROIC % is 32.30% as of Dec. 2025. GuruFocus rates TPE:6951 with a GF Score™ of 74/100 and a GF Value™ of NT$79.47 (Modestly Undervalued). The stock has 3 warning signs investors should review.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Chin Hsin Environ Engineering Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 32.30%.

As of today (2026-07-11), Chin Hsin Environ Engineering Co's WACC % is 10.33%. Chin Hsin Environ Engineering Co's ROIC % is 27.37% (calculated using TTM income statement data). Chin Hsin Environ Engineering Co 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.


Chin Hsin Environ Engineering Co  (TPE:6951) 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, Chin Hsin Environ Engineering Co's WACC % is 10.33%. Chin Hsin Environ Engineering Co's ROIC % is 27.37% (calculated using TTM income statement data). Chin Hsin Environ Engineering Co 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.


Chin Hsin Environ Engineering Co ROIC % Related Terms


Chin Hsin Environ Engineering Co ROIC % Historical Data

* Premium members only.

The historical data trend for Chin Hsin Environ Engineering 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.

Chin Hsin Environ Engineering Co ROIC % Chart

Chin Hsin Environ Engineering Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROIC %
Get a 7-Day Free Trial 9.48 15.15 14.93 26.03 29.53

Chin Hsin Environ Engineering Co Quarterly Data
Dec20 Dec21 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.45 21.75 21.72 30.74 32.30

TPE:6951 vs WM, RSG, WCN: ROIC % Comparison

For the Waste Management subindustry, Chin Hsin Environ Engineering 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.


Chin Hsin Environ Engineering Co ROIC % vs Waste Management Industry

For the Waste Management industry and Industrials sector, Chin Hsin Environ Engineering Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Chin Hsin Environ Engineering Co's ROIC % falls into.


TPE:6951
74GF Score
Chin Hsin Environ Engineering Co Ltd TPE:6951
ROIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Chin Hsin Environ Engineering Co ROIC % Calculation

Chin Hsin Environ Engineering Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2025 is calculated as:

ROIC % (A: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2024 ) + Invested Capital (A: Dec. 2025 ))/ count )
=353.064 * ( 1 - 19.98% )/( (840.073 + 1073.239)/ 2 )
=282.5218128/956.656
=29.53 %

where

Invested Capital(A: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1543.407 - 272.553 - ( 616.899 - max(0, 410.066 - 840.847+616.899))
=840.073

Invested Capital(A: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1625.29 - 304.503 - ( 472.995 - max(0, 447.062 - 694.61+472.995))
=1073.239

Chin Hsin Environ Engineering Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2025 is calculated as:

ROIC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=444.392 * ( 1 - 20.25% )/( (1121.253 + 1073.239)/ 2 )
=354.40262/1097.246
=32.30 %

where

Invested Capital(Q: Sep. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1554.518 - 267.458 - ( 344.542 - max(0, 423.707 - 589.514+344.542))
=1121.253

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1625.29 - 304.503 - ( 472.995 - max(0, 447.062 - 694.61+472.995))
=1073.239

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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of 32.30% mean?
Chin Hsin Environ Engineering Co (TPE:6951) has a ROIC % of 32.30% 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 Chin Hsin Environ Engineering Co and its competitors.
Is Chin Hsin Environ Engineering Co's ROIC % too high?
Chin Hsin Environ Engineering Co's current ROIC % is 32.30%. The Waste Management industry median ROIC % is 3.51. Chin Hsin Environ Engineering Co's value of 32.30% is 820.2% above this industry median. Overall, Chin Hsin Environ Engineering Co has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chin Hsin Environ Engineering Co's ROIC % compare to WM and RSG?
Chin Hsin Environ Engineering Co's ROIC % of 32.30% can be compared against companies in the Waste Management industry. The industry median ROIC % is 3.51. Chin Hsin Environ Engineering Co's value of 32.30% is 820.2% 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 Waste Management company?
The median ROIC % among Waste Management companies is 3.51, based on 245 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. Chin Hsin Environ Engineering Co's current ROIC % of 32.30% is 820.2% 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 Chin Hsin Environ Engineering Co and its competitors. For the Waste Management industry, the median ROIC % is 3.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chin Hsin Environ Engineering Co's current ROIC % is 32.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chin Hsin Environ Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Chin Hsin Environ Engineering Co (TPE:6951) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$79.47, compared to a current price of NT$69.62 — trading 12.4% below its estimated fair value. The current ROIC % is 32.30% and 820.2% above the Waste Management industry median of 3.51. Chin Hsin Environ Engineering Co's overall GF Score™ is 74/100 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 Chin Hsin Environ Engineering Co (TPE:6951), the current ROIC % is 32.30% 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 Chin Hsin Environ Engineering Co (TPE:6951) Overvalued in 2026?

Based on GuruFocus' analysis, Chin Hsin Environ Engineering Co stock appears to be undervalued. The current stock price of NT$69.62 is trading 12.4% below its estimated GF Value™ of NT$79.47. GuruFocus considers Chin Hsin Environ Engineering Co to be Modestly Undervalued.

Key valuation signals for TPE:6951:

  • ROIC %: 32.30%
  • GF Value™: NT$79.47 vs. price of NT$69.62 (12.4% below fair value)
  • GF Score™: 74/100 with 3 warning signs
  • Industry Position: 820.2% above the Waste Management median

No single metric tells the full story. See the TPE:6951 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Chin Hsin Environ Engineering Co Business Description

Address No. 58-1, Yanping Road, Yunlin County, Citong, TWN, 647008
Chin Hsin Environ Engineering Co Ltd offers the removal of general, hazardous industrial waste and biomedical waste produced by business institutions and medical institutions in Taiwan. It offers hazardous industrial waste and biomedical waste treatment for business institutions and medical institutions. The firm's segment comprises: Disposal Department, Treatment, Plastic-Wood Department, and Environmental Safety Department. The firm generates the majority of its revenue from the Disposal Department, which includes Medical Waste and Industrial Waste.
74GF Score

Get the complete analysis for TPE:6951

ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$69.62
Price
NT$79.47
GF Value