Coles GroupFRA:2OF 74 ROC (Joel Greenblatt) % is 12.27% as of Dec. 2025, which is 5% below its 10-year median of 12.97. GuruFocus rates FRA:2OF with a GF Score™ of 74/100 and a GF Value™ of €12.22 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 308 Retail - Defensive companies, Coles Group ranks worse than 55.52% 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. Coles Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 12.27%.
The historical rank and industry rank for Coles Group's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:2OF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 12.27 Med: 12.97 Max: 47.14
Current: 12.27
During the past 8 years, Coles Group's highest ROC (Joel Greenblatt) % was 47.14%. The lowest was 12.27%. And the median was 12.97%.
FRA:2OF's ROC (Joel Greenblatt) % is ranked worse than 55.52% of 308
companies
in the Retail - Defensive industry
Industry Median: 13.375
vs FRA:2OF: 12.27
Coles Group's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -4.90% per year.
Coles Group (FRA:2OF) 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.
Coles Group ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Coles 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.
FRA:2OF vs KR, SFM, ACI: ROC (Joel Greenblatt) % Comparison
For the Grocery Stores subindustry, Coles 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.
Coles Group ROC (Joel Greenblatt) % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Coles Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Coles 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 (Dec. 2025) 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 12.27% mean?
Coles Group (FRA:2OF) has a ROC (Joel Greenblatt) % of 12.27% as of Dec. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Coles Group and its competitors. This is near median its historical median of 12.97. Over the past decade, Coles Group's ROC (Joel Greenblatt) % has ranged from 12.27 to 47.14. According to the industry distribution chart, Coles Group ranks #171 out of 308 companies in the Retail - Defensive industry, placing it in the top 55.5%.
Is Coles Group's ROC (Joel Greenblatt) % too high?
Coles Group's current ROC (Joel Greenblatt) % of 12.27% is near median its 10-year median of 12.97. Over the past 10 years, this metric has ranged from a low of 12.27 to a high of 47.14. The Retail - Defensive industry median ROC (Joel Greenblatt) % is 13.38. Coles Group's value of 12.27% is 8.3% below this industry median. Based on the distribution chart, Coles Group ranks #171 out of 308 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Coles Group has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Coles Group's ROC (Joel Greenblatt) % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Coles Group ranks #171 out of 308 companies for ROC (Joel Greenblatt) %. This places Coles Group in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 13.38. Coles Group's value of 12.27% is 8.3% below this benchmark. Historically, Coles Group's own ROC (Joel Greenblatt) % has ranged from 12.27 to 47.14 over the past decade. While the company's 10-year median is 12.97 vs. the industry median of 13.38, Coles Group has consistently been below 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 Retail - Defensive company?
The median ROC (Joel Greenblatt) % among Retail - Defensive companies is 13.38, based on 308 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. Coles Group's current ROC (Joel Greenblatt) % of 12.27% is 8.3% below 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 Coles Group and its competitors. For the Retail - Defensive industry, the median ROC (Joel Greenblatt) % is 13.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Coles Group's current ROC (Joel Greenblatt) % is 12.27%, which is near median its own 10-year median of 12.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coles Group stock overvalued right now?
Based on GuruFocus' analysis, Coles Group (FRA:2OF) is currently considered Modestly Overvalued. The stock's GF Value™ is €12.22, compared to a current price of €14.50 — trading 18.7% above its estimated fair value. The current ROC (Joel Greenblatt) % is 12.27%, which is near median its 10-year median of 12.97 and 8.3% below the Retail - Defensive industry median of 13.38. Coles Group's overall GF Score™ is 74/100 with 8 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 Coles Group (FRA:2OF), the current ROC (Joel Greenblatt) % is 12.27% as of Dec. 2025. 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 Coles Group (FRA:2OF) Overvalued in 2026?
Based on GuruFocus' analysis, Coles Group stock appears to be overvalued.
The current stock price of €14.50 is trading 18.7% above its estimated GF Value™ of €12.22.
GuruFocus considers Coles Group to be Modestly Overvalued.
Key valuation signals for FRA:2OF:
ROC (Joel Greenblatt) %: 12.27% (near median its 10-year median of 12.97)
GF Value™: €12.22 vs. price of €14.50 (18.7% above fair value)
Industry Position: 8.3% below the Retail - Defensive median (#171 of 308)
No single metric tells the full story. See the FRA:2OF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coles is one of Australia's largest retailers, operating the second-largest supermarket chain behind market leader Woolworths, and the country's second-largest liquor chain. The group has an extensive store network of over 1,800 stores and roughly 80% of Australians live within a 10-minute drive from a Coles store. The retailer employs some 120,000 people, who process some 20 million individual customer transactions a week. This compares with Woolworths processing about 30 million customer transactions per week from Australia's population of 27 million.
74GF Score
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