Contact EnergyASX:CEN 66 ROC (Joel Greenblatt) % is 11.02% as of Dec. 2025, which is 61% above its 10-year median of 6.83. GuruFocus rates ASX:CEN with a GF Score™ of 66/100 and a GF Value™ of A$6.72 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 434 Utilities - Independent Power Producers companies, Contact Energy ranks better than 65.44% on this metric.
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. Contact Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 11.02%.
The historical rank and industry rank for Contact Energy's ROC (Joel Greenblatt) % or its related term are showing as below:
ASX:CEN'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -0.04 Med: 6.83 Max: 11.12
Current: 11.12
During the past 13 years, Contact Energy's highest ROC (Joel Greenblatt) % was 11.12%. The lowest was -0.04%. And the median was 6.83%.
ASX:CEN's ROC (Joel Greenblatt) % is ranked better than 65.44% of 434
companies
in the Utilities - Independent Power Producers industry
Industry Median: 6.615
vs ASX:CEN: 11.12
Contact Energy's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 9.70% per year.
Contact Energy (ASX:CEN) 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.
Contact Energy ROC (Joel Greenblatt) % Related Terms
Contact Energy ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Contact Energy'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.
Contact Energy ROC (Joel Greenblatt) % Competitor Comparison
For the Utilities - Renewable subindustry, Contact Energy'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.
Contact Energy ROC (Joel Greenblatt) % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Contact Energy's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Contact Energy's ROC (Joel Greenblatt) % falls into.
Contact Energy 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:
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.
Note:
The EBIT data used here is two times the semi-annual (Dec. 2025) 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.
What does a ROC (Joel Greenblatt) % of 11.02% mean?
Contact Energy (ASX:CEN) has a ROC (Joel Greenblatt) % of 11.02% as of Dec. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Contact Energy and its competitors. This is 61% above median its historical median of 6.83. According to the industry distribution chart, Contact Energy ranks #150 out of 434 companies in the Utilities - Independent Power Producers industry, placing it in the top 34.6%.
Is Contact Energy's ROC (Joel Greenblatt) % too high?
Contact Energy's current ROC (Joel Greenblatt) % of 11.02% is 61% above median its 10-year median of 6.83. The Utilities - Independent Power Producers industry median ROC (Joel Greenblatt) % is 6.62. Contact Energy's value of 11.02% is 66.6% above this industry median. Based on the distribution chart, Contact Energy ranks #150 out of 434 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Contact Energy has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Contact Energy's ROC (Joel Greenblatt) % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Contact Energy ranks #150 out of 434 companies for ROC (Joel Greenblatt) %. This puts Contact Energy in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 6.62. Contact Energy's value of 11.02% is 66.6% above this benchmark. While the company's 10-year median is 6.83 vs. the industry median of 6.62, Contact Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC (Joel Greenblatt) % for an Utilities - Independent Power Producers company?
The median ROC (Joel Greenblatt) % among Utilities - Independent Power Producers companies is 6.62, based on 434 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Contact Energy's current ROC (Joel Greenblatt) % of 11.02% is 66.6% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Contact Energy and its competitors. For the Utilities - Independent Power Producers industry, the median ROC (Joel Greenblatt) % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Contact Energy's current ROC (Joel Greenblatt) % is 11.02%, which is 61% above median its own 10-year median of 6.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Contact Energy stock overvalued right now?
Based on GuruFocus' analysis, Contact Energy (ASX:CEN) is currently considered Modestly Overvalued. The stock's GF Value™ is A$6.72, compared to a current price of A$7.46 — trading 11% above its estimated fair value. The current ROC (Joel Greenblatt) % is 11.02%, which is 61% above median its 10-year median of 6.83 and 66.6% above the Utilities - Independent Power Producers industry median of 6.62. Contact Energy's overall GF Score™ is 66/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Contact Energy (ASX:CEN), the current ROC (Joel Greenblatt) % is 11.02% 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 Contact Energy (ASX:CEN) Overvalued in 2026?
Based on GuruFocus' analysis, Contact Energy stock appears to be overvalued.
The current stock price of A$7.46 is trading 11% above its estimated GF Value™ of A$6.72.
GuruFocus considers Contact Energy to be Modestly Overvalued.
Key valuation signals for ASX:CEN:
ROC (Joel Greenblatt) %: 11.02% (61% above median its 10-year median of 6.83)
GF Value™: A$6.72 vs. price of A$7.46 (11% above fair value)
Industry Position: 66.6% above the Utilities - Independent Power Producers median (#150 of 434)
No single metric tells the full story. See the ASX:CEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Contact Energy is a diversified and integrated energy company. It owns a fleet of hydro, geothermal, and gas-fired generation assets, which produce more than 25% of New Zealand's electricity. It also retails electricity and gas to nearly half a million customers.
66GF Score
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