Chagee HoldingsCHA -8.17%22 ROC (Joel Greenblatt) % is 117.50% as of Mar. 2026, which is 67% below its 10-year median of 352.09. GuruFocus rates CHA with a GF Score™ of 22/100. The stock has 2 warning signs investors should review. Among 361 Restaurants companies, Chagee Holdings ranks better than 92.24% 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. Chagee Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 117.50%.
The historical rank and industry rank for Chagee Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
CHA'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -149.25 Med: 352.09 Max: 925.28
Current: 74.9
During the past 4 years, Chagee Holdings's highest ROC (Joel Greenblatt) % was 925.28%. The lowest was -149.25%. And the median was 352.09%.
CHA's ROC (Joel Greenblatt) % is ranked better than 92.24% of 361
companies
in the Restaurants industry
Industry Median: 8.67
vs CHA: 74.90
Chagee Holdings'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.
Chagee Holdings ROC (Joel Greenblatt) % Related Terms
Chagee Holdings ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Chagee Holdings'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.
CHA vs SHAK, ARCO, WEN: ROC (Joel Greenblatt) % Comparison
For the Restaurants subindustry, Chagee Holdings'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.
Chagee Holdings ROC (Joel Greenblatt) % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Chagee Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Chagee Holdings'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 four times the quarterly (Mar. 2026) 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 117.50% mean?
Chagee Holdings (CHA) has a ROC (Joel Greenblatt) % of 117.50% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Chagee Holdings and its competitors. This is 67% below median its historical median of 352.09. According to the industry distribution chart, Chagee Holdings ranks #28 out of 361 companies in the Restaurants industry, placing it in the top 7.8%.
Is Chagee Holdings' ROC (Joel Greenblatt) % too high?
Chagee Holdings' current ROC (Joel Greenblatt) % of 117.50% is 67% below median its 10-year median of 352.09. The Restaurants industry median ROC (Joel Greenblatt) % is 8.67. Chagee Holdings' value of 117.50% is 1255.2% above this industry median. Based on the distribution chart, Chagee Holdings ranks #28 out of 361 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Chagee Holdings has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Chagee Holdings' ROC (Joel Greenblatt) % compare to SHAK and ARCO?
According to the Restaurants industry distribution chart, Chagee Holdings ranks #28 out of 361 companies for ROC (Joel Greenblatt) %. This places Chagee Holdings in the top 8% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 8.67. Chagee Holdings' value of 117.50% is 1255.2% above this benchmark. While the company's 10-year median is 352.09 vs. the industry median of 8.67, Chagee Holdings 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 Restaurants company?
The median ROC (Joel Greenblatt) % among Restaurants companies is 8.67, based on 361 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. Chagee Holdings's current ROC (Joel Greenblatt) % of 117.50% is 1255.2% 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 Chagee Holdings and its competitors. For the Restaurants industry, the median ROC (Joel Greenblatt) % is 8.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chagee Holdings's current ROC (Joel Greenblatt) % is 117.50%, which is 67% below median its own 10-year median of 352.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chagee Holdings stock overvalued right now?
Chagee Holdings (CHA) has a current ROC (Joel Greenblatt) % of 117.50%. The current ROC (Joel Greenblatt) % is 117.50%, which is 67% below median its 10-year median of 352.09 and 1255.2% above the Restaurants industry median of 8.67. Chagee Holdings' overall GF Score™ is 22/100 with 2 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 Chagee Holdings (CHA), the current ROC (Joel Greenblatt) % is 117.50% as of Mar. 2026. 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.
Chagee Holdings Ltd is a premium tea drinks brand. It is engaged in the sales of freshly-made tea drinks, related raw materials, packaging, teahouse equipment, and other supplies in the People's Republic of China.
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