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BMC Stock Holdings (BMC Stock Holdings) ROC (Joel Greenblatt) % : 29.54% (As of Sep. 2020)


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What is BMC Stock Holdings ROC (Joel Greenblatt) %?

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. BMC Stock Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2020 was 29.54%.

The historical rank and industry rank for BMC Stock Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:

BMCH' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -51.64   Med: 15.5   Max: 29.68
Current: 22.44

During the past 10 years, BMC Stock Holdings's highest ROC (Joel Greenblatt) % was 29.68%. The lowest was -51.64%. And the median was 15.50%.

BMCH's ROC (Joel Greenblatt) % is not ranked
in the Construction industry.
Industry Median: 18.08 vs BMCH: 22.44

BMC Stock Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 20.70% per year.


BMC Stock Holdings ROC (Joel Greenblatt) % Historical Data

The historical data trend for BMC Stock Holdings's ROC (Joel Greenblatt) % 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.

* Premium members only.

BMC Stock Holdings ROC (Joel Greenblatt) % Chart

BMC Stock Holdings Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.85 12.23 16.41 26.87 22.34

BMC Stock Holdings Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
ROC (Joel Greenblatt) % 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.97 15.75 16.21 28.63 29.54

Competitive Comparison of BMC Stock Holdings's ROC (Joel Greenblatt) %

For the Building Products & Equipment subindustry, BMC Stock Holdings's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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.


BMC Stock Holdings's ROC (Joel Greenblatt) % Distribution in the Construction Industry

For the Construction industry and Industrials sector, BMC Stock Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where BMC Stock Holdings's ROC (Joel Greenblatt) % falls into.



BMC Stock Holdings ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Working Capital(Q: Jun. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(361.953 + 326.807 + 70.926) - (341.743 + 42.61 + 18.487)
=356.846

Working Capital(Q: Sep. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(393.735 + 413.031 + 76.239) - (436.327 + 44.98 + 16.746)
=384.952

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of BMC Stock Holdings for the quarter that ended in Sep. 2020 can be restated as:

ROC (Joel Greenblatt) %(Q: Sep. 2020 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2020  Q: Sep. 2020
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=257.78/( ( (504.918 + max(356.846, 0)) + (498.312 + max(384.952, 0)) )/ 2 )
=257.78/( ( 861.764 + 883.264 )/ 2 )
=257.78/872.514
=29.54 %

Note: The EBIT data used here is four times the quarterly (Sep. 2020) EBIT data.

* 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.


BMC Stock Holdings  (NAS:BMCH) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


BMC Stock Holdings ROC (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of BMC Stock Holdings's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


BMC Stock Holdings (BMC Stock Holdings) Business Description

Traded in Other Exchanges
N/A
Address
8020 Arco Corporate Drive, Suite 400, Raleigh, NC, USA, 27617
BMC Stock Holdings Inc is a diversified lumber and building materials distributor and solutions provider. Its primary products are lumber and lumber sheet goods, millwork, doors, flooring, windows, and structural components, among others. The company offers services such as lock keying, decking and docking, cabinet specialists, showroom and design centers, window and door replacement, and others. It sells its products under the brand name Metrie, Huber, Trex, James Hardie, and Jeld-Wen among others. The company's reportable divisions are the Mid-Atlantic, Southeast, Texas, Intermountain and Western divisions.
Executives
Major James F. Jr. officer: See Remarks C/O STOCK BUILDING SUPPLY HOLDINGS, INC. 8020 ARCO CORPORATE DRIVE RALEIGH NC 27617
David E Flitman director, officer: See Remarks C/O NALCO COMPANY, 1601 WEST DIEHL ROAD, NAPERVILLE IL 60563
James Oleary director
David W Bullock director C/O GRAHAM PACKAGING HOLDINGS COMPANY, 2401 PLEASANT VALLEY ROAD, YORK PA 17402
Boydston Cory Jacobs director C/O BMC STOCK HOLDINGS, INC., 4800 FALLS OF NEUSE RD, SUITE 400, RALEIGH NC 27617
Henry Buckley director TWO LAKE SIDE COMMONS - BUILDING TWO 980 HAMMOND DRIVE,SUITE 500 ATLANTA GA 30328
David L. Keltner director C/O STOCK BUILDING SUPPLY HOLDINGS, INC. 8020 ARCO CORPORATE DR RALEIGH NC 27617
Michael Thomas Miller director C/O INSTALLED BUILDING PRODUCTS, INC., 495 SOUTH HIGH STREET, SUITE 50, COLUMBUS OH 43215
Mark A Alexander director C/O W. P. CAREY INC., 395 9TH AVENUE, 58TH FLOOR, NEW YORK, NEW YORK NY 10001
Vertuca Carl R Jr director 11101 W. 120TH AVENUE, SUITE 200, BROOMFIELD CO 80021
Cheemin Bo-linn director 4555 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Timothy D Johnson officer: See Remarks 5020 WESTON PARKWAY, SUITE 400, CARY NC 27513
Michael Alan Farmer officer: See Remarks C/O BMC STOCK HOLDINGS, INC., 4800 FALLS OF NEUSE RD, SUITE 400, RALEIGH NC 27609
Lisa M. Hamblet officer: See Remarks C/O STOCK BUILDING SUPPLY HOLDINGS, INC. 8020 ARCO CORPORATE DRIVE RALEIGH NC 27617
Jeffrey Gene Rea director C/O STOCK BUILDING SUPPLY HOLDINGS, INC., 8020 ARCO CORPORATE DRIVE, SUITE 400, RALEIGH NC 27617

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