ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. LOTTE Fine Chemical Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.99%.
As of today (2026-07-12), LOTTE Fine Chemical Co's WACC % is 6.00%. LOTTE Fine Chemical Co's ROIC % is 3.72% (calculated using TTM income statement data).
LOTTE Fine Chemical Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
LOTTE Fine Chemical Co (XKRX:004000) 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, LOTTE Fine Chemical Co's WACC % is 6.00%. LOTTE Fine Chemical Co's ROIC % is 3.72% (calculated using TTM income statement data).
LOTTE Fine Chemical 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 Chemicals subindustry, LOTTE Fine Chemical 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.
LOTTE Fine Chemical Co ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, LOTTE Fine Chemical Co's ROIC % distribution charts can be found below:
* The bar in red indicates where LOTTE Fine Chemical Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) 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.
LOTTE Fine Chemical Co (XKRX:004000) has a ROIC % of 4.99% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on LOTTE Fine Chemical Co and its competitors.
Is LOTTE Fine Chemical Co's ROIC % too high?
LOTTE Fine Chemical Co's current ROIC % is 4.99%. The Chemicals industry median ROIC % is 4.48. LOTTE Fine Chemical Co's value of 4.99% is 11.4% above this industry median. Overall, LOTTE Fine Chemical Co has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LOTTE Fine Chemical Co's ROIC % compare to DOW?
LOTTE Fine Chemical Co's ROIC % of 4.99% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.48. LOTTE Fine Chemical Co's value of 4.99% is 11.4% 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.48, based on 1,577 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. LOTTE Fine Chemical Co's current ROIC % of 4.99% is 11.4% 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 LOTTE Fine Chemical Co and its competitors. For the Chemicals industry, the median ROIC % is 4.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LOTTE Fine Chemical Co's current ROIC % is 4.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LOTTE Fine Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, LOTTE Fine Chemical Co (XKRX:004000) is currently considered Modestly Undervalued. The stock's GF Value™ is ₩49,981.25, compared to a current price of ₩45,150.00 — trading 9.7% below its estimated fair value. The current ROIC % is 4.99% and 11.4% above the Chemicals industry median of 4.48. LOTTE Fine Chemical Co's overall GF Score™ is 89/100 with 5 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 LOTTE Fine Chemical Co (XKRX:004000), the current ROIC % is 4.99% as of Mar. 2026. 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 LOTTE Fine Chemical Co (XKRX:004000) Overvalued in 2026?
Based on GuruFocus' analysis, LOTTE Fine Chemical Co stock appears to be undervalued.
The current stock price of ₩45,150.00 is trading 9.7% below its estimated GF Value™ of ₩49,981.25.
GuruFocus considers LOTTE Fine Chemical Co to be Modestly Undervalued.
Key valuation signals for XKRX:004000:
ROIC %: 4.99%
GF Value™: ₩49,981.25 vs. price of ₩45,150.00 (9.7% below fair value)
Industry Position: 11.4% above the Chemicals median
No single metric tells the full story. See the XKRX:004000 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LOTTE Fine Chemical Co Ltd manufactures and sells a variety of chemicals, and chemical-based products. The firm organizes itself into three segments based on product type. The chlorine/cellulose segment, which generates the majority of revenue, sells cellulose and caustic soda used to make products for the construction, cement, ceramics, paint, detergent, and personal care industries. The electronic materials segment sells toner for color laser printers, liquid crystal display materials, and lithium nickel cobalt manganese oxide, used in rechargeable batteries. The ammonia segment's products are used in the production of fertilizer, textiles, and pharmaceuticals. The majority of sales come from Asia.
89GF Score
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