Nortel Inversora (BUE:NORT6) ROC (Joel Greenblatt) %: 53.88% (As of Sep. 2017) — 30% Above Median

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What is Nortel Inversora ROC (Joel Greenblatt) %?

Nortel Inversora BUE:NORT6 ROC (Joel Greenblatt) % is 53.88% as of Sep. 2017, which is 30% above its 10-year median of 41.55. The stock has 9 warning signs investors should review.

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. Nortel Inversora's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2017 was 53.88%.

The historical rank and industry rank for Nortel Inversora's ROC (Joel Greenblatt) % or its related term are showing as below:

BUE:NORT6' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 23.8   Med: 41.55   Max: 51.55
Current: 48.95

During the past 13 years, Nortel Inversora's highest ROC (Joel Greenblatt) % was 51.55%. The lowest was 23.80%. And the median was 41.55%.

BUE:NORT6's ROC (Joel Greenblatt) % is not ranked
in the Telecommunication Services industry.
Industry Median: 16.63 vs BUE:NORT6: 48.95

Nortel Inversora's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -9.80% per year.


Nortel Inversora  (BUE:NORT6) 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.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


Nortel Inversora ROC (Joel Greenblatt) % Related Terms


Nortel Inversora ROC (Joel Greenblatt) % Historical Data

* Premium members only.

The historical data trend for Nortel Inversora'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.

Nortel Inversora ROC (Joel Greenblatt) % Chart

Nortel Inversora Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 49.80 50.71 47.13 37.11 36.40

Nortel Inversora Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
ROC (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 32.65 39.95 57.95 47.25 53.88

BUE:NORT6 vs GLIBA, TDCAF: ROC (Joel Greenblatt) % Comparison

For the Telecom Services subindustry, Nortel Inversora'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.


Nortel Inversora ROC (Joel Greenblatt) % vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Nortel Inversora's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Nortel Inversora's ROC (Joel Greenblatt) % falls into.



Nortel Inversora 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:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

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.

Working Capital(Q: Jun. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(7854 + 1251 + 878) - (15432 + 1061 + 418)
=-6928

Working Capital(Q: Sep. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(7824 + 1951 + 743) - (17768 + 818 + 477)
=-8545

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Nortel Inversora for the quarter that ended in Sep. 2017 can be restated as:

ROC (Joel Greenblatt) %(Q: Sep. 2017 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2017  Q: Sep. 2017
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=13756/( ( (24727 + max(-6928, 0)) + (26333 + max(-8545, 0)) )/ 2 )
=13756/( ( 24727 + 26333 )/ 2 )
=13756/25530
=53.88 %

Note: The EBIT data used here is four times the quarterly (Sep. 2017) 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 53.88% mean?
Nortel Inversora (BUE:NORT6) has a ROC (Joel Greenblatt) % of 53.88% as of Sep. 2017. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Nortel Inversora and its competitors. This is 30% above median its historical median of 41.55. Over the past decade, Nortel Inversora's ROC (Joel Greenblatt) % has ranged from 23.80 to 51.55.
Is Nortel Inversora's ROC (Joel Greenblatt) % too high?
Nortel Inversora's current ROC (Joel Greenblatt) % of 53.88% is 30% above median its 10-year median of 41.55. Over the past 10 years, this metric has ranged from a low of 23.80 to a high of 51.55. The Telecommunication Services industry median ROC (Joel Greenblatt) % is 16.63. Nortel Inversora's value of 53.88% is 224% above this industry median.
How does Nortel Inversora's ROC (Joel Greenblatt) % compare to GLIBA and TDCAF?
Nortel Inversora's ROC (Joel Greenblatt) % of 53.88% can be compared against companies in the Telecommunication Services industry. The industry median ROC (Joel Greenblatt) % is 16.63. Nortel Inversora's value of 53.88% is 224% above this benchmark. Historically, Nortel Inversora's own ROC (Joel Greenblatt) % has ranged from 23.80 to 51.55 over the past decade. While the company's 10-year median is 41.55 vs. the industry median of 16.63, Nortel Inversora 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 Telecommunication Services company?
The median ROC (Joel Greenblatt) % among Telecommunication Services companies is 16.63, based on 367 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. Nortel Inversora's current ROC (Joel Greenblatt) % of 53.88% is 224% 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 Nortel Inversora and its competitors. For the Telecommunication Services industry, the median ROC (Joel Greenblatt) % is 16.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nortel Inversora's current ROC (Joel Greenblatt) % is 53.88%, which is 30% above median its own 10-year median of 41.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nortel Inversora stock overvalued right now?
Nortel Inversora (BUE:NORT6) has a current ROC (Joel Greenblatt) % of 53.88%. The current ROC (Joel Greenblatt) % is 53.88%, which is 30% above median its 10-year median of 41.55 and 224% above the Telecommunication Services industry median of 16.63. 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 Nortel Inversora (BUE:NORT6), the current ROC (Joel Greenblatt) % is 53.88% as of Sep. 2017. 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.

Nortel Inversora Business Description

Nortel Inversora SA is a holding company. The company provides fixed-line public telecommunications services and basic telephone services. Nortel operates through the following segments: Fixed Services; Personal Mobile Services; and Nucleo Mobile Services. The Fixed Services division provides a local area, national long-distance and international communications, supplementary services, data transmission, internet services, IT solution outsourcing and sales of equipment. Personal Mobile Services and Nucleo Mobile Services division offerings include voice communications, high-speed mobile internet content and applications download, multimedia messaging services, among others; and sale of mobile communication devices.