WatercoASX:WAT +1.96%80 ROC (Joel Greenblatt) % is 11.13% as of Dec. 2025, which is 91% above its 10-year median of 5.84. GuruFocus rates ASX:WAT with a GF Score™ of 80/100 and a GF Value™ of A$7.67 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 3,055 Industrial Products companies, Waterco ranks worse than 57.87% 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. Waterco's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 11.13%.
The historical rank and industry rank for Waterco's ROC (Joel Greenblatt) % or its related term are showing as below:
ASX:WAT'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.78 Med: 5.84 Max: 9.89
Current: 8.31
During the past 13 years, Waterco's highest ROC (Joel Greenblatt) % was 9.89%. The lowest was 2.78%. And the median was 5.84%.
ASX:WAT's ROC (Joel Greenblatt) % is ranked worse than 57.87% of 3055
companies
in the Industrial Products industry
Industry Median: 11.75
vs ASX:WAT: 8.31
Waterco's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 14.40% 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 Waterco'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:WAT vs VLTO, ZWS, CECO: ROC (Joel Greenblatt) % Comparison
For the Pollution & Treatment Controls subindustry, Waterco'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.
Waterco ROC (Joel Greenblatt) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Waterco's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Waterco'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 11.13% mean?
Waterco (ASX:WAT) has a ROC (Joel Greenblatt) % of 11.13% 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 Waterco and its competitors. This is 91% above median its historical median of 5.84. Over the past decade, Waterco's ROC (Joel Greenblatt) % has ranged from 2.78 to 9.89. According to the industry distribution chart, Waterco ranks #1768 out of 3055 companies in the Industrial Products industry, placing it in the top 57.9%.
Is Waterco's ROC (Joel Greenblatt) % too high?
Waterco's current ROC (Joel Greenblatt) % of 11.13% is 91% above median its 10-year median of 5.84. Over the past 10 years, this metric has ranged from a low of 2.78 to a high of 9.89. The Industrial Products industry median ROC (Joel Greenblatt) % is 11.75. Waterco's value of 11.13% is 5.3% below this industry median. Based on the distribution chart, Waterco ranks #1768 out of 3055 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Waterco has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Waterco's ROC (Joel Greenblatt) % compare to VLTO and ZWS?
According to the Industrial Products industry distribution chart, Waterco ranks #1768 out of 3055 companies for ROC (Joel Greenblatt) %. This places Waterco in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.75. Waterco's value of 11.13% is 5.3% below this benchmark. Historically, Waterco's own ROC (Joel Greenblatt) % has ranged from 2.78 to 9.89 over the past decade. While the company's 10-year median is 5.84 vs. the industry median of 11.75, Waterco has consistently been below 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 Industrial Products company?
The median ROC (Joel Greenblatt) % among Industrial Products companies is 11.75, based on 3,055 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. Waterco's current ROC (Joel Greenblatt) % of 11.13% is 5.3% below 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 Waterco and its competitors. For the Industrial Products industry, the median ROC (Joel Greenblatt) % is 11.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Waterco's current ROC (Joel Greenblatt) % is 11.13%, which is 91% above median its own 10-year median of 5.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Waterco stock overvalued right now?
Based on GuruFocus' analysis, Waterco (ASX:WAT) is currently considered Significantly Undervalued. The stock's GF Value™ is A$7.67, compared to a current price of A$5.20 — trading 32.2% below its estimated fair value. The current ROC (Joel Greenblatt) % is 11.13%, which is 91% above median its 10-year median of 5.84 and 5.3% below the Industrial Products industry median of 11.75. Waterco's overall GF Score™ is 80/100 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 Waterco (ASX:WAT), the current ROC (Joel Greenblatt) % is 11.13% 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 Waterco (ASX:WAT) Overvalued in 2026?
Based on GuruFocus' analysis, Waterco stock appears to be undervalued.
The current stock price of A$5.20 is trading 32.2% below its estimated GF Value™ of A$7.67.
GuruFocus considers Waterco to be Significantly Undervalued.
Key valuation signals for ASX:WAT:
ROC (Joel Greenblatt) %: 11.13% (91% above median its 10-year median of 5.84)
GF Value™: A$7.67 vs. price of A$5.20 (32.2% below fair value)
Industry Position: 5.3% below the Industrial Products median (#1768 of 3055)
No single metric tells the full story. See the ASX:WAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Waterco Ltd designs, manufactures, and distributes filtration and sanitisation products for swimming pools, spas, aquaculture, and water purification sectors. The company serves residential, commercial, and industrial markets in various countries. Waterco operates manufacturing and R&D facilities in Australia, New Zealand, Malaysia, China, and other countries. It also franchises Swimart, a pool and spa retail network in Australia and New Zealand, and is the exclusive distributor of Zane Solar Pool Heating systems. Waterco's product range includes pool equipment, water treatment systems, chemicals, and solar heating solutions. The company generates revenue predominantly through the sales of pool and spa equipment, water treatment systems, and franchising operations.
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