DP WorldDFM:DPW ROC (Joel Greenblatt) % is 16.36% as of Dec. 2019, which is 21% below its 10-year median of 20.66. 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. DP World's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2019 was 16.36%.
The historical rank and industry rank for DP World's ROC (Joel Greenblatt) % or its related term are showing as below:
DFM:DPW'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 16.03 Med: 20.66 Max: 24.06
Current: 19.38
During the past 13 years, DP World's highest ROC (Joel Greenblatt) % was 24.06%. The lowest was 16.03%. And the median was 20.66%.
DFM:DPW's ROC (Joel Greenblatt) % is not ranked
in the Transportation industry.
Industry Median: 11.695
vs DFM:DPW: 19.38
DP World's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
DP World (DFM:DPW) 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.
The historical data trend for DP World'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.
DFM:DPW vs KEX: ROC (Joel Greenblatt) % Comparison
For the Marine Shipping subindustry, DP World'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.
DP World ROC (Joel Greenblatt) % vs Transportation Industry
For the Transportation industry and Industrials sector, DP World's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where DP World'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. 2019) 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 16.36% mean?
DP World (DFM:DPW) has a ROC (Joel Greenblatt) % of 16.36% as of Dec. 2019. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on DP World and its competitors. This is 21% below median its historical median of 20.66. Over the past decade, DP World's ROC (Joel Greenblatt) % has ranged from 16.03 to 24.06.
Is DP World's ROC (Joel Greenblatt) % too high?
DP World's current ROC (Joel Greenblatt) % of 16.36% is 21% below median its 10-year median of 20.66. Over the past 10 years, this metric has ranged from a low of 16.03 to a high of 24.06. The Transportation industry median ROC (Joel Greenblatt) % is 11.70. DP World's value of 16.36% is 39.9% above this industry median.
How does DP World's ROC (Joel Greenblatt) % compare to KEX?
DP World's ROC (Joel Greenblatt) % of 16.36% can be compared against companies in the Transportation industry. The industry median ROC (Joel Greenblatt) % is 11.70. DP World's value of 16.36% is 39.9% above this benchmark. Historically, DP World's own ROC (Joel Greenblatt) % has ranged from 16.03 to 24.06 over the past decade. While the company's 10-year median is 20.66 vs. the industry median of 11.70, DP World 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 Transportation company?
The median ROC (Joel Greenblatt) % among Transportation companies is 11.70, based on 996 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. DP World's current ROC (Joel Greenblatt) % of 16.36% is 39.9% 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 DP World and its competitors. For the Transportation industry, the median ROC (Joel Greenblatt) % is 11.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DP World's current ROC (Joel Greenblatt) % is 16.36%, which is 21% below median its own 10-year median of 20.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DP World stock overvalued right now?
DP World (DFM:DPW) has a current ROC (Joel Greenblatt) % of 16.36%. The current ROC (Joel Greenblatt) % is 16.36%, which is 21% below median its 10-year median of 20.66 and 39.9% above the Transportation industry median of 11.70. 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 DP World (DFM:DPW), the current ROC (Joel Greenblatt) % is 16.36% as of Dec. 2019. 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.
DP World PLC is a transportation and logistics company, domiciled in the United Arab Emirates. The company develops and manages international marine and inland terminal facilities, operates industrial parks and economic zones, and provides logistics services. DP World organises itself into three geographical segments: Asia-Pacific and the Indian subcontinent; Australia and Americas; and the Middle East, Europe, and Africa. The company derives the vast majority of revenue from the Middle East, Europe, and Africa.
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