IRESSASX:IRE +3.40%73 ROC (Joel Greenblatt) % is 321.40% as of Dec. 2025, which is 83% above its 10-year median of 175.39. GuruFocus rates ASX:IRE with a GF Score™ of 73/100 and a GF Value™ of A$7.56 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,806 Software companies, IRESS ranks better than 84.43% 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. IRESS's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 321.40%.
The historical rank and industry rank for IRESS's ROC (Joel Greenblatt) % or its related term are showing as below:
ASX:IRE'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -128.94 Med: 175.39 Max: 3340.97
Current: 205.27
During the past 13 years, IRESS's highest ROC (Joel Greenblatt) % was 3340.97%. The lowest was -128.94%. And the median was 175.39%.
ASX:IRE's ROC (Joel Greenblatt) % is ranked better than 84.43% of 2806
companies
in the Software industry
Industry Median: 19.605
vs ASX:IRE: 205.27
IRESS's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
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.
The historical data trend for IRESS'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.
ASX:IRE vs UBER, SHOP, CRM: ROC (Joel Greenblatt) % Comparison
For the Software - Application subindustry, IRESS'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.
IRESS ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, IRESS's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where IRESS's ROC (Joel Greenblatt) % falls into.
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 321.40% mean?
IRESS (ASX:IRE) has a ROC (Joel Greenblatt) % of 321.40% 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 IRESS and its competitors. This is 83% above median its historical median of 175.39. According to the industry distribution chart, IRESS ranks #437 out of 2806 companies in the Software industry, placing it in the top 15.6%.
Is IRESS's ROC (Joel Greenblatt) % too high?
IRESS's current ROC (Joel Greenblatt) % of 321.40% is 83% above median its 10-year median of 175.39. The Software industry median ROC (Joel Greenblatt) % is 19.61. IRESS's value of 321.40% is 1539.4% above this industry median. Based on the distribution chart, IRESS ranks #437 out of 2806 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, IRESS has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does IRESS's ROC (Joel Greenblatt) % compare to UBER and SHOP?
According to the Software industry distribution chart, IRESS ranks #437 out of 2806 companies for ROC (Joel Greenblatt) %. This places IRESS in the top 16% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 19.61. IRESS's value of 321.40% is 1539.4% above this benchmark. While the company's 10-year median is 175.39 vs. the industry median of 19.61, IRESS 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 a Software company?
The median ROC (Joel Greenblatt) % among Software companies is 19.61, based on 2,806 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. IRESS's current ROC (Joel Greenblatt) % of 321.40% is 1539.4% 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 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 IRESS and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 19.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IRESS's current ROC (Joel Greenblatt) % is 321.40%, which is 83% above median its own 10-year median of 175.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IRESS stock overvalued right now?
Based on GuruFocus' analysis, IRESS (ASX:IRE) is currently considered Modestly Undervalued. The stock's GF Value™ is A$7.56, compared to a current price of A$6.39 — trading 15.5% below its estimated fair value. The current ROC (Joel Greenblatt) % is 321.40%, which is 83% above median its 10-year median of 175.39 and 1539.4% above the Software industry median of 19.61. IRESS's overall GF Score™ is 73/100 with 3 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 IRESS (ASX:IRE), the current ROC (Joel Greenblatt) % is 321.40% 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 IRESS (ASX:IRE) Overvalued in 2026?
Based on GuruFocus' analysis, IRESS stock appears to be undervalued.
The current stock price of A$6.39 is trading 15.5% below its estimated GF Value™ of A$7.56.
GuruFocus considers IRESS to be Modestly Undervalued.
Key valuation signals for ASX:IRE:
ROC (Joel Greenblatt) %: 321.40% (83% above median its 10-year median of 175.39)
GF Value™: A$7.56 vs. price of A$6.39 (15.5% below fair value)
Industry Position: 1539.4% above the Software median (#437 of 2806)
No single metric tells the full story. See the ASX:IRE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Iress develops software for the financial-services industry, operating in multiple regions and servicing clients ranging from small retail to large institutional businesses. Its core business unit, mainly in Australia, generates most of the company's earnings and free cash flows. Iress expanded into noncore markets through acquisitions, ultimately eroding returns and margins, with free cash flows from the core business invested in the noncore businesses. Its recent strategy includes reprioritizing growth in the core Trading and Market Data and Wealth businesses, and divesting/monetizing noncore assets. We view this renewed focus on its core business as a positive, as it will help maintain Iress' economic moat.
73GF Score
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