DiplomaDPLMF +2.39%96 ROC (Joel Greenblatt) % is 73.38% as of Mar. 2026, which is 8% above its 10-year median of 68.08. GuruFocus rates DPLMF with a GF Score™ of 96/100 and a GF Value™ of $73.16 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 156 Industrial Distribution companies, Diploma ranks better than 94.23% 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. Diploma's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 73.38%.
The historical rank and industry rank for Diploma's ROC (Joel Greenblatt) % or its related term are showing as below:
DPLMF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 57.22 Med: 68.08 Max: 88.12
Current: 70.78
During the past 13 years, Diploma's highest ROC (Joel Greenblatt) % was 88.12%. The lowest was 57.22%. And the median was 68.08%.
DPLMF's ROC (Joel Greenblatt) % is ranked better than 94.23% of 156
companies
in the Industrial Distribution industry
Industry Median: 14.98
vs DPLMF: 70.78
Diploma's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 1.50% 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 Diploma'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.
DPLMF vs GWW, FAST, FERG: ROC (Joel Greenblatt) % Comparison
For the Industrial Distribution subindustry, Diploma'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.
Diploma ROC (Joel Greenblatt) % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Diploma's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Diploma'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 (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 73.38% mean?
Diploma (DPLMF) has a ROC (Joel Greenblatt) % of 73.38% 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 Diploma and its competitors. This is near median its historical median of 68.08. Over the past decade, Diploma's ROC (Joel Greenblatt) % has ranged from 57.22 to 88.12. According to the industry distribution chart, Diploma ranks #9 out of 156 companies in the Industrial Distribution industry, placing it in the top 5.8%.
Is Diploma's ROC (Joel Greenblatt) % too high?
Diploma's current ROC (Joel Greenblatt) % of 73.38% is near median its 10-year median of 68.08. Over the past 10 years, this metric has ranged from a low of 57.22 to a high of 88.12. The Industrial Distribution industry median ROC (Joel Greenblatt) % is 14.98. Diploma's value of 73.38% is 389.9% above this industry median. Based on the distribution chart, Diploma ranks #9 out of 156 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Diploma has a GF Score™ of 96/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Diploma's ROC (Joel Greenblatt) % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Diploma ranks #9 out of 156 companies for ROC (Joel Greenblatt) %. This places Diploma in the top 6% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 14.98. Diploma's value of 73.38% is 389.9% above this benchmark. Historically, Diploma's own ROC (Joel Greenblatt) % has ranged from 57.22 to 88.12 over the past decade. While the company's 10-year median is 68.08 vs. the industry median of 14.98, Diploma 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 Distribution company?
The median ROC (Joel Greenblatt) % among Industrial Distribution companies is 14.98, based on 156 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. Diploma's current ROC (Joel Greenblatt) % of 73.38% is 389.9% 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 Diploma and its competitors. For the Industrial Distribution industry, the median ROC (Joel Greenblatt) % is 14.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diploma's current ROC (Joel Greenblatt) % is 73.38%, which is near median its own 10-year median of 68.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diploma stock overvalued right now?
Based on GuruFocus' analysis, Diploma (DPLMF) is currently considered Modestly Overvalued. The stock's GF Value™ is $73.16, compared to a current price of $94.50 — trading 29.2% above its estimated fair value. The current ROC (Joel Greenblatt) % is 73.38%, which is near median its 10-year median of 68.08 and 389.9% above the Industrial Distribution industry median of 14.98. Diploma's overall GF Score™ is 96/100 with 6 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 Diploma (DPLMF), the current ROC (Joel Greenblatt) % is 73.38% 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.
Is Diploma (DPLMF) Overvalued in 2026?
Based on GuruFocus' analysis, Diploma stock appears to be overvalued.
The current stock price of $94.50 is trading 29.2% above its estimated GF Value™ of $73.16.
GuruFocus considers Diploma to be Modestly Overvalued.
Key valuation signals for DPLMF:
ROC (Joel Greenblatt) %: 73.38% (near median its 10-year median of 68.08)
GF Value™: $73.16 vs. price of $94.50 (29.2% above fair value)
Industry Position: 389.9% above the Industrial Distribution median (#9 of 156)
No single metric tells the full story. See the DPLMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diploma PLC is a group of businesses supplying specialised technical products and services to various industries. The Group is organized into three main reportable business sectors: Controls, Seals and Life Sciences. The company offers consumables, instrumentation, and related services to the healthcare and environmental industries; seals, gaskets, filters, cylinders, components, and kits for heavy mobile machinery and industrial equipment; and specialized wiring, connectors, fasteners, and control devices for various applications. It operates in segments such as Wire & Cable (UK), Industrial Automation, Specialty Adhesives, Windy City Wire, Interconnect and Specialty Fasteners. The company operates in UK, USA, Rest of Europe, and Rest of World.
96GF Score
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