ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Hsin Kao Gas Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 2.51%.
As of today (2026-06-30), Hsin Kao Gas Co's WACC % is 4.16%. Hsin Kao Gas Co's ROIC % is 2.62% (calculated using TTM income statement data).
Hsin Kao Gas Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Hsin Kao Gas Co (TPE:9931) 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, Hsin Kao Gas Co's WACC % is 4.16%. Hsin Kao Gas Co's ROIC % is 2.62% (calculated using TTM income statement data).
Hsin Kao Gas 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.
Hsin Kao Gas Co ROIC % Related Terms
Hsin Kao Gas Co ROIC % Historical Data
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The historical data trend for Hsin Kao Gas 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 Utilities - Regulated Gas subindustry, Hsin Kao Gas 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.
Hsin Kao Gas Co ROIC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Hsin Kao Gas Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Hsin Kao Gas 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.
Hsin Kao Gas Co (TPE:9931) has a ROIC % of 2.51% 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 Hsin Kao Gas Co and its competitors.
Is Hsin Kao Gas Co's ROIC % too high?
Hsin Kao Gas Co's current ROIC % is 2.51%. The Utilities - Regulated industry median ROIC % is 4.18. Hsin Kao Gas Co's value of 2.51% is 40% below this industry median. Overall, Hsin Kao Gas Co has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hsin Kao Gas Co's ROIC % compare to ATO and NI?
Hsin Kao Gas Co's ROIC % of 2.51% can be compared against companies in the Utilities - Regulated industry. The industry median ROIC % is 4.18. Hsin Kao Gas Co's value of 2.51% is 40% 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 an Utilities - Regulated company?
The median ROIC % among Utilities - Regulated companies is 4.18, based on 503 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. Hsin Kao Gas Co's current ROIC % of 2.51% is 40% 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 Hsin Kao Gas Co and its competitors. For the Utilities - Regulated industry, the median ROIC % is 4.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hsin Kao Gas Co's current ROIC % is 2.51%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hsin Kao Gas Co stock overvalued right now?
Based on GuruFocus' analysis, Hsin Kao Gas Co (TPE:9931) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$37.60, compared to a current price of NT$33.45 — trading 11% below its estimated fair value. The current ROIC % is 2.51% and 40% below the Utilities - Regulated industry median of 4.18. Hsin Kao Gas Co's overall GF Score™ is 88/100 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 Hsin Kao Gas Co (TPE:9931), the current ROIC % is 2.51% 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 Hsin Kao Gas Co (TPE:9931) Overvalued in 2026?
Based on GuruFocus' analysis, Hsin Kao Gas Co stock appears to be undervalued.
The current stock price of NT$33.45 is trading 11% below its estimated GF Value™ of NT$37.60.
GuruFocus considers Hsin Kao Gas Co to be Modestly Undervalued.
Key valuation signals for TPE:9931:
ROIC %: 2.51%
GF Value™: NT$37.60 vs. price of NT$33.45 (11% below fair value)
Industry Position: 40% below the Utilities - Regulated median
No single metric tells the full story. See the TPE:9931 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hsin Kao Gas Co Ltd is a Taiwan-based company mainly engaged in the sale of natural gas and the installation of gas pipelines. The Company sells natural gas and transports the natural gas imported by CPC Corp Taiwan to residential and commercial users in the operating area through gas pipelines for use as fuel. The business scope mainly targets industrial, commercial and general household users in the nine administrative districts of Kaohsiung City, including Sanmin, Qianjin, Xinxing, Lingya, Qianzhen, Gushan, Zuoying, Nanzi and Yancheng.
88GF Score
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