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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Fine Digital's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was -18.52%.
As of today (2026-09-14), Fine Digital's WACC % is 4.31%. Fine Digital's ROIC % is -8.91% (calculated using TTM income statement data).
Fine Digital earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Fine Digital's WACC % is 4.31%. Fine Digital's ROIC % is -8.91% (calculated using TTM income statement data).
Fine Digital 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.
Fine Digital ROIC % Related Terms
Fine Digital ROIC % Historical Data
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The historical data trend for Fine Digital'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, Fine Digital'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.
Fine Digital ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, Fine Digital's ROIC % distribution charts can be found below:
* The bar in red indicates where Fine Digital's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 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.
Fine Digital (XKRX:038950) has a ROIC % of -18.52% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Fine Digital and its competitors.
Is Fine Digital's ROIC % too high?
Fine Digital's current ROIC % is -18.52%. Overall, Fine Digital has a GF Score™ of 54/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fine Digital's ROIC % compare to CSCO and MSI?
Fine Digital's ROIC % of -18.52% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.40. 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 4.40, based on 2,439 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. 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 Fine Digital and its competitors. For the Hardware industry, the median ROIC % is 4.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fine Digital's current ROIC % is -18.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fine Digital stock overvalued right now?
Based on GuruFocus' analysis, Fine Digital (XKRX:038950) is currently considered Fairly Valued. The stock's GF Value™ is ₩2,941.14, compared to a current price of ₩3,005.00 — trading 2.2% above its estimated fair value. The current ROIC % is -18.52%. Fine Digital's overall GF Score™ is 54/100 with 1 warning sign 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 Fine Digital (XKRX:038950), the current ROIC % is -18.52% as of Jun. 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 Fine Digital (XKRX:038950) Overvalued in 2026?
Based on GuruFocus' analysis, Fine Digital stock appears to be overvalued.
The current stock price of ₩3,005.00 is trading 2.2% above its estimated GF Value™ of ₩2,941.14.
GuruFocus considers Fine Digital to be Fairly Valued.
Key valuation signals for XKRX:038950:
ROIC %: -18.52%
GF Value™: ₩2,941.14 vs. price of ₩3,005.00 (2.2% above fair value)
No single metric tells the full story. See the XKRX:038950 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fine Digital Inc engages in the manufacture and sale of navigation systems and dashcams, and also operates a building rental business. It generates the majority of its revenue from the Navigation black box, abd golf rangefinder sector.
54GF Score
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