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. ALA SpA's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2025 was 40.82%.
The historical rank and industry rank for ALA SpA's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:8WD'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 17.32 Med: 24.55 Max: 39.92
Current: 39.92
During the past 7 years, ALA SpA's highest ROC (Joel Greenblatt) % was 39.92%. The lowest was 17.32%. And the median was 24.55%.
FRA:8WD's ROC (Joel Greenblatt) % is not ranked
in the Industrial Distribution industry.
Industry Median: 14.41
vs FRA:8WD: 39.92
ALA SpA's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 11.00% per year.
ALA SpA (FRA:8WD) 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 ALA SpA'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:8WD vs GWW, FAST, FERG: ROC (Joel Greenblatt) % Comparison
For the Industrial Distribution subindustry, ALA SpA'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.
ALA SpA ROC (Joel Greenblatt) % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, ALA SpA's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where ALA SpA'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 (Jun. 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 40.82% mean?
ALA SpA (FRA:8WD) has a ROC (Joel Greenblatt) % of 40.82% as of Jun. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on ALA SpA and its competitors. This is 66% above median its historical median of 24.55. Over the past decade, ALA SpA's ROC (Joel Greenblatt) % has ranged from 17.32 to 39.92.
Is ALA SpA's ROC (Joel Greenblatt) % too high?
ALA SpA's current ROC (Joel Greenblatt) % of 40.82% is 66% above median its 10-year median of 24.55. Over the past 10 years, this metric has ranged from a low of 17.32 to a high of 39.92. The Industrial Distribution industry median ROC (Joel Greenblatt) % is 14.41. ALA SpA's value of 40.82% is 183.3% above this industry median. Overall, ALA SpA has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does ALA SpA's ROC (Joel Greenblatt) % compare to GWW and FAST?
ALA SpA's ROC (Joel Greenblatt) % of 40.82% can be compared against companies in the Industrial Distribution industry. The industry median ROC (Joel Greenblatt) % is 14.41. ALA SpA's value of 40.82% is 183.3% above this benchmark. Historically, ALA SpA's own ROC (Joel Greenblatt) % has ranged from 17.32 to 39.92 over the past decade. While the company's 10-year median is 24.55 vs. the industry median of 14.41, ALA SpA 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 14.41, based on 157 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. ALA SpA's current ROC (Joel Greenblatt) % of 40.82% is 183.3% 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 ALA SpA and its competitors. For the Industrial Distribution industry, the median ROC (Joel Greenblatt) % is 14.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALA SpA's current ROC (Joel Greenblatt) % is 40.82%, which is 66% above median its own 10-year median of 24.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALA SpA stock overvalued right now?
ALA SpA (FRA:8WD) has a current ROC (Joel Greenblatt) % of 40.82%. The stock's GF Value™ is €30.35, compared to a current price of €36.00 — trading 18.6% above its estimated fair value. The current ROC (Joel Greenblatt) % is 40.82%, which is 66% above median its 10-year median of 24.55 and 183.3% above the Industrial Distribution industry median of 14.41. ALA SpA's overall GF Score™ is 66/100 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 ALA SpA (FRA:8WD), the current ROC (Joel Greenblatt) % is 40.82% as of Jun. 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 ALA SpA (FRA:8WD) Overvalued in 2026?
Based on GuruFocus' analysis, ALA SpA stock appears to be overvalued.
The current stock price of €36.00 is trading 18.6% above its estimated GF Value™ of €30.35.
Key valuation signals for FRA:8WD:
ROC (Joel Greenblatt) %: 40.82% (66% above median its 10-year median of 24.55)
GF Value™: €30.35 vs. price of €36.00 (18.6% above fair value)
Industry Position: 183.3% above the Industrial Distribution median
No single metric tells the full story. See the FRA:8WD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ALA SpA is a distributor and supply chain solutions provider to the industrial markets. It is involved in the distribution of components and equipment for use in the civil and military aeronautical sectors. The company also offers integrated logistics services for the rail, energy, and marine sectors. Its various product offerings include power systems, oxygen systems, gate valves, protection valves, fasteners, regulators, and others. Geographically, the company derives maximum revenue from its business in Italy and the rest from other parts of the European Union and other regions.
66GF Score
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ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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