ESCO TechnologiesESE -2.09%87 ROC (Joel Greenblatt) % is 75.70% as of Mar. 2026, which is 90% above its 10-year median of 39.77. GuruFocus rates ESE with a GF Score™ of 87/100 and a GF Value™ of $186.72 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,487 Hardware companies, ESCO Technologies ranks better than 91.15% 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. ESCO Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 75.70%.
The historical rank and industry rank for ESCO Technologies's ROC (Joel Greenblatt) % or its related term are showing as below:
ESE'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 19.43 Med: 39.77 Max: 66.76
Current: 66.76
During the past 13 years, ESCO Technologies's highest ROC (Joel Greenblatt) % was 66.76%. The lowest was 19.43%. And the median was 39.77%.
ESE's ROC (Joel Greenblatt) % is ranked better than 91.15% of 2487
companies
in the Hardware industry
Industry Median: 10.43
vs ESE: 66.76
ESCO Technologies's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 17.70% 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.
ESCO Technologies ROC (Joel Greenblatt) % Related Terms
ESCO Technologies ROC (Joel Greenblatt) % Historical Data
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The historical data trend for ESCO Technologies'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.
ESE vs ST, CGNX, TRMB: ROC (Joel Greenblatt) % Comparison
For the Scientific & Technical Instruments subindustry, ESCO Technologies'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.
ESCO Technologies ROC (Joel Greenblatt) % vs Hardware Industry
For the Hardware industry and Technology sector, ESCO Technologies's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where ESCO Technologies'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 75.70% mean?
ESCO Technologies (ESE) has a ROC (Joel Greenblatt) % of 75.70% 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 ESCO Technologies and its competitors. This is 90% above median its historical median of 39.77. Over the past decade, ESCO Technologies' ROC (Joel Greenblatt) % has ranged from 19.43 to 66.76. According to the industry distribution chart, ESCO Technologies ranks #220 out of 2487 companies in the Hardware industry, placing it in the top 8.8%.
Is ESCO Technologies' ROC (Joel Greenblatt) % too high?
ESCO Technologies' current ROC (Joel Greenblatt) % of 75.70% is 90% above median its 10-year median of 39.77. Over the past 10 years, this metric has ranged from a low of 19.43 to a high of 66.76. The Hardware industry median ROC (Joel Greenblatt) % is 10.43. ESCO Technologies' value of 75.70% is 625.8% above this industry median. Based on the distribution chart, ESCO Technologies ranks #220 out of 2487 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, ESCO Technologies has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ESCO Technologies' ROC (Joel Greenblatt) % compare to ST and CGNX?
According to the Hardware industry distribution chart, ESCO Technologies ranks #220 out of 2487 companies for ROC (Joel Greenblatt) %. This places ESCO Technologies in the top 9% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 10.43. ESCO Technologies' value of 75.70% is 625.8% above this benchmark. Historically, ESCO Technologies' own ROC (Joel Greenblatt) % has ranged from 19.43 to 66.76 over the past decade. While the company's 10-year median is 39.77 vs. the industry median of 10.43, ESCO Technologies 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 Hardware company?
The median ROC (Joel Greenblatt) % among Hardware companies is 10.43, based on 2,487 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. ESCO Technologies's current ROC (Joel Greenblatt) % of 75.70% is 625.8% 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 ESCO Technologies and its competitors. For the Hardware industry, the median ROC (Joel Greenblatt) % is 10.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ESCO Technologies's current ROC (Joel Greenblatt) % is 75.70%, which is 90% above median its own 10-year median of 39.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ESCO Technologies stock overvalued right now?
Based on GuruFocus' analysis, ESCO Technologies (ESE) is currently considered Significantly Overvalued. The stock's GF Value™ is $186.72, compared to a current price of $332.78 — trading 78.2% above its estimated fair value. The current ROC (Joel Greenblatt) % is 75.70%, which is 90% above median its 10-year median of 39.77 and 625.8% above the Hardware industry median of 10.43. ESCO Technologies' overall GF Score™ is 87/100 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 ESCO Technologies (ESE), the current ROC (Joel Greenblatt) % is 75.70% 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 ESCO Technologies (ESE) Overvalued in 2026?
Based on GuruFocus' analysis, ESCO Technologies stock appears to be overvalued.
The current stock price of $332.78 is trading 78.2% above its estimated GF Value™ of $186.72.
GuruFocus considers ESCO Technologies to be Significantly Overvalued.
Key valuation signals for ESE:
ROC (Joel Greenblatt) %: 75.70% (90% above median its 10-year median of 39.77)
GF Value™: $186.72 vs. price of $332.78 (78.2% above fair value)
Industry Position: 625.8% above the Hardware median (#220 of 2487)
No single metric tells the full story. See the ESE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ESCO Technologies Inc sells engineered products and systems for utility, industrial, aerospace, and commercial applications. The firm operates in three segments: Aerospace & Defense (A&D), Utility Solutions Group (USG), and RF Test & Measurement (Test). The Aerospace and Defense segment designs and manufactures specialty filtration and naval products. The USG segment provides diagnostic testing solutions. The Test segment provides its customers with the ability to identify, measure, and contain magnetic, electromagnetic, and acoustic energy.
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