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Hikari TsushinFRA:HIK 77 ROC (Joel Greenblatt) % is 129.95% as of Mar. 2026, which is 35% below its 10-year median of 200.98. GuruFocus rates FRA:HIK with a GF Score™ of 77/100 and a GF Value™ of €214.87 (Fairly Valued). The stock has 5 warning signs investors should review. Among 553 Conglomerates companies, Hikari Tsushin ranks better than 95.48% 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. Hikari Tsushin's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 129.95%.
The historical rank and industry rank for Hikari Tsushin's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:HIK'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 87.01 Med: 200.98 Max: 287.92
Current: 187.12
During the past 13 years, Hikari Tsushin's highest ROC (Joel Greenblatt) % was 287.92%. The lowest was 87.01%. And the median was 200.98%.
FRA:HIK's ROC (Joel Greenblatt) % is ranked better than 95.48% of 553
companies
in the Conglomerates industry
Industry Median: 14.87
vs FRA:HIK: 187.12
Hikari Tsushin's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -1.20% 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.
Hikari Tsushin ROC (Joel Greenblatt) % Related Terms
Hikari Tsushin ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Hikari Tsushin'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:HIK vs MMM, HON: ROC (Joel Greenblatt) % Comparison
For the Conglomerates subindustry, Hikari Tsushin'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.
Hikari Tsushin ROC (Joel Greenblatt) % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hikari Tsushin's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Hikari Tsushin'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 129.95% mean?
Hikari Tsushin (FRA:HIK) has a ROC (Joel Greenblatt) % of 129.95% 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 Hikari Tsushin and its competitors. This is 35% below median its historical median of 200.98. Over the past decade, Hikari Tsushin's ROC (Joel Greenblatt) % has ranged from 87.01 to 287.92. According to the industry distribution chart, Hikari Tsushin ranks #25 out of 553 companies in the Conglomerates industry, placing it in the top 4.5%.
Is Hikari Tsushin's ROC (Joel Greenblatt) % too high?
Hikari Tsushin's current ROC (Joel Greenblatt) % of 129.95% is 35% below median its 10-year median of 200.98. Over the past 10 years, this metric has ranged from a low of 87.01 to a high of 287.92. The Conglomerates industry median ROC (Joel Greenblatt) % is 14.87. Hikari Tsushin's value of 129.95% is 773.9% above this industry median. Based on the distribution chart, Hikari Tsushin ranks #25 out of 553 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Hikari Tsushin has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hikari Tsushin's ROC (Joel Greenblatt) % compare to MMM and HON?
According to the Conglomerates industry distribution chart, Hikari Tsushin ranks #25 out of 553 companies for ROC (Joel Greenblatt) %. This places Hikari Tsushin in the top 5% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 14.87. Hikari Tsushin's value of 129.95% is 773.9% above this benchmark. Historically, Hikari Tsushin's own ROC (Joel Greenblatt) % has ranged from 87.01 to 287.92 over the past decade. While the company's 10-year median is 200.98 vs. the industry median of 14.87, Hikari Tsushin 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 Conglomerates company?
The median ROC (Joel Greenblatt) % among Conglomerates companies is 14.87, based on 553 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. Hikari Tsushin's current ROC (Joel Greenblatt) % of 129.95% is 773.9% 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 Hikari Tsushin and its competitors. For the Conglomerates industry, the median ROC (Joel Greenblatt) % is 14.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikari Tsushin's current ROC (Joel Greenblatt) % is 129.95%, which is 35% below median its own 10-year median of 200.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hikari Tsushin stock overvalued right now?
Based on GuruFocus' analysis, Hikari Tsushin (FRA:HIK) is currently considered Fairly Valued. The stock's GF Value™ is €214.87, compared to a current price of €214.00 — trading 0.4% below its estimated fair value. The current ROC (Joel Greenblatt) % is 129.95%, which is 35% below median its 10-year median of 200.98 and 773.9% above the Conglomerates industry median of 14.87. Hikari Tsushin's overall GF Score™ is 77/100 with 5 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 Hikari Tsushin (FRA:HIK), the current ROC (Joel Greenblatt) % is 129.95% 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 Hikari Tsushin (FRA:HIK) Overvalued in 2026?
Based on GuruFocus' analysis, Hikari Tsushin stock appears to be undervalued.
The current stock price of €214.00 is trading 0.4% below its estimated GF Value™ of €214.87.
GuruFocus considers Hikari Tsushin to be Fairly Valued.
Key valuation signals for FRA:HIK:
ROC (Joel Greenblatt) %: 129.95% (35% below median its 10-year median of 200.98)
GF Value™: €214.87 vs. price of €214.00 (0.4% below fair value)
Industry Position: 773.9% above the Conglomerates median (#25 of 553)
No single metric tells the full story. See the FRA:HIK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hikari Tsushin Inc operates as a holding company engaged in diversified businesses through seven segments: Electricity and Gas, Telecommunications, Beverages, Insurance, Finance, Solutions, and Agency Sales. The group provides electricity and gas supply, communication services, natural mineral water, non-life insurance, and warranty services, as well as financial services such as microfinance, industry-specific solution platforms, and agency sales of various products from telecommunications carriers and manufacturers. It generates the majority of its revenue from the Electricity and Gas segment.
77GF Score
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