Kip McGrath Education CentresASX:KME 59 ROC (Joel Greenblatt) % is 154.97% as of Dec. 2025, which is 7% below its 10-year median of 166.46. GuruFocus rates ASX:KME with a GF Score™ of 59/100 and a GF Value™ of A$0.55 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 263 Education companies, Kip McGrath Education Centres ranks better than 87.83% 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. Kip McGrath Education Centres's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 154.97%.
The historical rank and industry rank for Kip McGrath Education Centres's ROC (Joel Greenblatt) % or its related term are showing as below:
ASX:KME'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 81.32 Med: 166.46 Max: 5132.31
Current: 138.04
During the past 13 years, Kip McGrath Education Centres's highest ROC (Joel Greenblatt) % was 5132.31%. The lowest was 81.32%. And the median was 166.46%.
ASX:KME's ROC (Joel Greenblatt) % is ranked better than 87.83% of 263
companies
in the Education industry
Industry Median: 17.53
vs ASX:KME: 138.04
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.
* 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:KME vs EDU, TAL, LAUR: ROC (Joel Greenblatt) % Comparison
For the Education & Training Services subindustry, Kip McGrath Education Centres'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.
Kip McGrath Education Centres ROC (Joel Greenblatt) % vs Education Industry
For the Education industry and Consumer Defensive sector, Kip McGrath Education Centres's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Kip McGrath Education Centres'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 154.97% mean?
Kip McGrath Education Centres (ASX:KME) has a ROC (Joel Greenblatt) % of 154.97% 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 Kip McGrath Education Centres and its competitors. This is near median its historical median of 166.46. Over the past decade, Kip McGrath Education Centres' ROC (Joel Greenblatt) % has ranged from 81.32 to 5,132.31. According to the industry distribution chart, Kip McGrath Education Centres ranks #32 out of 263 companies in the Education industry, placing it in the top 12.2%.
Is Kip McGrath Education Centres' ROC (Joel Greenblatt) % too high?
Kip McGrath Education Centres' current ROC (Joel Greenblatt) % of 154.97% is near median its 10-year median of 166.46. Over the past 10 years, this metric has ranged from a low of 81.32 to a high of 5,132.31. The Education industry median ROC (Joel Greenblatt) % is 17.53. Kip McGrath Education Centres' value of 154.97% is 784% above this industry median. Based on the distribution chart, Kip McGrath Education Centres ranks #32 out of 263 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Kip McGrath Education Centres has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kip McGrath Education Centres' ROC (Joel Greenblatt) % compare to EDU and TAL?
According to the Education industry distribution chart, Kip McGrath Education Centres ranks #32 out of 263 companies for ROC (Joel Greenblatt) %. This places Kip McGrath Education Centres in the top 12% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 17.53. Kip McGrath Education Centres' value of 154.97% is 784% above this benchmark. Historically, Kip McGrath Education Centres' own ROC (Joel Greenblatt) % has ranged from 81.32 to 5,132.31 over the past decade. While the company's 10-year median is 166.46 vs. the industry median of 17.53, Kip McGrath Education Centres 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 Education company?
The median ROC (Joel Greenblatt) % among Education companies is 17.53, based on 263 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. Kip McGrath Education Centres's current ROC (Joel Greenblatt) % of 154.97% is 784% 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 Kip McGrath Education Centres and its competitors. For the Education industry, the median ROC (Joel Greenblatt) % is 17.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kip McGrath Education Centres's current ROC (Joel Greenblatt) % is 154.97%, which is near median its own 10-year median of 166.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kip McGrath Education Centres stock overvalued right now?
Based on GuruFocus' analysis, Kip McGrath Education Centres (ASX:KME) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.55, compared to a current price of A$0.48 — trading 12.7% below its estimated fair value. The current ROC (Joel Greenblatt) % is 154.97%, which is near median its 10-year median of 166.46 and 784% above the Education industry median of 17.53. Kip McGrath Education Centres' overall GF Score™ is 59/100 with 4 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 Kip McGrath Education Centres (ASX:KME), the current ROC (Joel Greenblatt) % is 154.97% 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 Kip McGrath Education Centres (ASX:KME) Overvalued in 2026?
Based on GuruFocus' analysis, Kip McGrath Education Centres stock appears to be undervalued.
The current stock price of A$0.48 is trading 12.7% below its estimated GF Value™ of A$0.55.
GuruFocus considers Kip McGrath Education Centres to be Modestly Undervalued.
Key valuation signals for ASX:KME:
ROC (Joel Greenblatt) %: 154.97% (near median its 10-year median of 166.46)
GF Value™: A$0.55 vs. price of A$0.48 (12.7% below fair value)
Industry Position: 784% above the Education median (#32 of 263)
No single metric tells the full story. See the ASX:KME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kip McGrath Education Centres Business Description
Kip McGrath Education Centres Ltd offers supplementary education to students through the franchise in Australia and overseas, in the United Kingdom and New Zealand. Its products are face-to-face tuition programs, direct at-home educational products, and online tertiary courses. Geographically, the company operates in Australasia, the United Kingdom and Europe, and Other overseas regions. It derives revenue from franchise fees, student lesson fees, sales of master territories and franchise centers, and direct sales, of which a majority of the revenue is derived from franchise fees.
59GF Score
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