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Smiths GroupCHIX:SMINL +1.50%68 ROC (Joel Greenblatt) % is 20.74% as of Jan. 2026, which is 58% below its 10-year median of 49.10. GuruFocus rates CHIX:SMINL with a GF Score™ of 68/100 and a GF Value™ of £12.76 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,065 Industrial Products companies, Smiths Group ranks better than 79.25% 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. Smiths Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2026 was 20.74%.
The historical rank and industry rank for Smiths Group's ROC (Joel Greenblatt) % or its related term are showing as below:
CHIX:SMINl'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 12.2 Med: 49.1 Max: 80.95
Current: 31.14
During the past 13 years, Smiths Group's highest ROC (Joel Greenblatt) % was 80.95%. The lowest was 12.20%. And the median was 49.10%.
CHIX:SMINl's ROC (Joel Greenblatt) % is ranked better than 79.25% of 3065
companies
in the Industrial Products industry
Industry Median: 11.67
vs CHIX:SMINl: 31.14
Smiths Group's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 39.90% per year.
Smiths Group (CHIX:SMINl) 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.
Smiths Group ROC (Joel Greenblatt) % Related Terms
Smiths Group ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Smiths Group'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.
CHIX:SMINL vs GEV, ETN, PH: ROC (Joel Greenblatt) % Comparison
For the Specialty Industrial Machinery subindustry, Smiths Group'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.
Smiths Group ROC (Joel Greenblatt) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Smiths Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Smiths Group'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 (Jan. 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 20.74% mean?
Smiths Group (CHIX:SMINL) has a ROC (Joel Greenblatt) % of 20.74% as of Jan. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Smiths Group and its competitors. This is 58% below median its historical median of 49.10. Over the past decade, Smiths Group's ROC (Joel Greenblatt) % has ranged from 12.20 to 80.95. According to the industry distribution chart, Smiths Group ranks #636 out of 3065 companies in the Industrial Products industry, placing it in the top 20.8%.
Is Smiths Group's ROC (Joel Greenblatt) % too high?
Smiths Group's current ROC (Joel Greenblatt) % of 20.74% is 58% below median its 10-year median of 49.10. Over the past 10 years, this metric has ranged from a low of 12.20 to a high of 80.95. The Industrial Products industry median ROC (Joel Greenblatt) % is 11.67. Smiths Group's value of 20.74% is 77.7% above this industry median. Based on the distribution chart, Smiths Group ranks #636 out of 3065 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Smiths Group has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smiths Group's ROC (Joel Greenblatt) % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Smiths Group ranks #636 out of 3065 companies for ROC (Joel Greenblatt) %. This places Smiths Group in the top 21% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.67. Smiths Group's value of 20.74% is 77.7% above this benchmark. Historically, Smiths Group's own ROC (Joel Greenblatt) % has ranged from 12.20 to 80.95 over the past decade. While the company's 10-year median is 49.10 vs. the industry median of 11.67, Smiths Group 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 Industrial Products company?
The median ROC (Joel Greenblatt) % among Industrial Products companies is 11.67, based on 3,065 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. Smiths Group's current ROC (Joel Greenblatt) % of 20.74% is 77.7% 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 Smiths Group and its competitors. For the Industrial Products industry, the median ROC (Joel Greenblatt) % is 11.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smiths Group's current ROC (Joel Greenblatt) % is 20.74%, which is 58% below median its own 10-year median of 49.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smiths Group stock overvalued right now?
Based on GuruFocus' analysis, Smiths Group (CHIX:SMINL) is currently considered Significantly Overvalued. The stock's GF Value™ is £12.76, compared to a current price of £26.37 — trading 106.7% above its estimated fair value. The current ROC (Joel Greenblatt) % is 20.74%, which is 58% below median its 10-year median of 49.10 and 77.7% above the Industrial Products industry median of 11.67. Smiths Group's overall GF Score™ is 68/100 with 5 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 Smiths Group (CHIX:SMINL), the current ROC (Joel Greenblatt) % is 20.74% as of Jan. 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.
Is Smiths Group (CHIX:SMINL) Overvalued in 2026?
Based on GuruFocus' analysis, Smiths Group stock appears to be overvalued.
The current stock price of £26.37 is trading 106.7% above its estimated GF Value™ of £12.76.
GuruFocus considers Smiths Group to be Significantly Overvalued.
Key valuation signals for CHIX:SMINL:
ROC (Joel Greenblatt) %: 20.74% (58% below median its 10-year median of 49.10)
GF Value™: £12.76 vs. price of £26.37 (106.7% above fair value)
Industry Position: 77.7% above the Industrial Products median (#636 of 3065)
No single metric tells the full story. See the CHIX:SMINL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smiths Group is a UK-based industrial technology company focused on engineered solutions for fluid and energy management, following the agreed divestments of its Detection and Interconnect divisions. Its two core businesses—John Crane and Flex-Tek - serve critical infrastructure, energy, aerospace, HVAC, and industrial markets. John Crane supplies mechanical seals, filtration systems, and condition-monitoring technologies used in rotating equipment, with a high-margin, recurring aftermarket business. Flex-Tek provides specialized tubing, heating components, and ducting systems primarily for US HVAC and aerospace OEMs.
68GF Score
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