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. Matrix Composites & Engineering's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was -41.06%.
The historical rank and industry rank for Matrix Composites & Engineering's ROC (Joel Greenblatt) % or its related term are showing as below:
ASX:MCE'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -88.9 Med: -15.69 Max: 40.27
Current: -22.2
During the past 13 years, Matrix Composites & Engineering's highest ROC (Joel Greenblatt) % was 40.27%. The lowest was -88.90%. And the median was -15.69%.
ASX:MCE's ROC (Joel Greenblatt) % is ranked worse than 87.32% of 1775
companies
in the Construction industry
Industry Median: 19.37
vs ASX:MCE: -22.20
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:MCE vs PWR, FIX, EME: ROC (Joel Greenblatt) % Comparison
For the Engineering & Construction subindustry, Matrix Composites & Engineering'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.
Matrix Composites & Engineering ROC (Joel Greenblatt) % vs Construction Industry
For the Construction industry and Industrials sector, Matrix Composites & Engineering's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Matrix Composites & Engineering'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 -41.06% mean?
Matrix Composites & Engineering (ASX:MCE) has a ROC (Joel Greenblatt) % of -41.06% 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 Matrix Composites & Engineering and its competitors. According to the industry distribution chart, Matrix Composites & Engineering ranks #1550 out of 1775 companies in the Construction industry, placing it in the top 87.3%.
Is Matrix Composites & Engineering's ROC (Joel Greenblatt) % too high?
Matrix Composites & Engineering's current ROC (Joel Greenblatt) % is -41.06%. Based on the distribution chart, Matrix Composites & Engineering ranks #1550 out of 1775 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Matrix Composites & Engineering has a GF Score™ of 39/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Matrix Composites & Engineering's ROC (Joel Greenblatt) % compare to PWR and FIX?
According to the Construction industry distribution chart, Matrix Composites & Engineering ranks #1550 out of 1775 companies for ROC (Joel Greenblatt) %. This places Matrix Composites & Engineering in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 19.37. 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 Construction company?
The median ROC (Joel Greenblatt) % among Construction companies is 19.37, based on 1,775 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. 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 Matrix Composites & Engineering and its competitors. For the Construction industry, the median ROC (Joel Greenblatt) % is 19.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Matrix Composites & Engineering's current ROC (Joel Greenblatt) % is -41.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Matrix Composites & Engineering stock overvalued right now?
Based on GuruFocus' analysis, Matrix Composites & Engineering (ASX:MCE) is currently considered Fairly Valued. The stock's GF Value™ is A$0.38, compared to a current price of A$0.40 — trading 3.9% above its estimated fair value. The current ROC (Joel Greenblatt) % is -41.06%. Matrix Composites & Engineering's overall GF Score™ is 39/100 with 10 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 Matrix Composites & Engineering (ASX:MCE), the current ROC (Joel Greenblatt) % is -41.06% 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 Matrix Composites & Engineering (ASX:MCE) Overvalued in 2026?
Based on GuruFocus' analysis, Matrix Composites & Engineering stock appears to be overvalued.
The current stock price of A$0.40 is trading 3.9% above its estimated GF Value™ of A$0.38.
GuruFocus considers Matrix Composites & Engineering to be Fairly Valued.
Key valuation signals for ASX:MCE:
ROC (Joel Greenblatt) %: -41.06%
GF Value™: A$0.38 vs. price of A$0.40 (3.9% above fair value)
No single metric tells the full story. See the ASX:MCE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Matrix Composites & Engineering Business Description
Matrix Composites & Engineering Ltd is a manufacturer of engineered products and services for the offshore oil and gas, civil and infrastructure, and defence industry. The group is also involved in the businesses of manufacturing and supplying capital drilling equipment, consisting of syntactic foam buoyancy; manufacturing and supply of subsea umbilical risers and flowline (SURF) ancillary equipment and associated services; and manufacturing and supply of well construction products, including centralizers and conductors. Its products consist of buoyancy systems, epoxy resin systems, energy absorption systems, reinforced thermoplastics, and others. Geographically, it derives maximum revenue from Brazil and rest from Australia, Japan, China, the United States of America, and other regions.
39GF Score
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