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Hong Leong AsiaFRA:HOM +2.70%62 ROC (Joel Greenblatt) % is 27.93% as of Dec. 2025, which is 23% above its 10-year median of 22.66. GuruFocus rates FRA:HOM with a GF Score™ of 62/100 and a GF Value™ of €0.66 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,331 Vehicles & Parts companies, Hong Leong Asia ranks better than 84% 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. Hong Leong Asia's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 27.93%.
The historical rank and industry rank for Hong Leong Asia's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:HOM'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 8.12 Med: 22.66 Max: 34.88
Current: 31.17
During the past 13 years, Hong Leong Asia's highest ROC (Joel Greenblatt) % was 34.88%. The lowest was 8.12%. And the median was 22.66%.
FRA:HOM's ROC (Joel Greenblatt) % is ranked better than 84% of 1331
companies
in the Vehicles & Parts industry
Industry Median: 12.03
vs FRA:HOM: 31.17
Hong Leong Asia's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 14.30% per year.
Hong Leong Asia (FRA:HOM) 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.
Hong Leong Asia ROC (Joel Greenblatt) % Related Terms
Hong Leong Asia ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Hong Leong Asia'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:HOM vs TSLA, GM, F: ROC (Joel Greenblatt) % Comparison
For the Auto Manufacturers subindustry, Hong Leong Asia'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.
Hong Leong Asia ROC (Joel Greenblatt) % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hong Leong Asia's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Hong Leong Asia's ROC (Joel Greenblatt) % falls into.
Hong Leong Asia ROC (Joel Greenblatt) % Calculation
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 27.93% mean?
Hong Leong Asia (FRA:HOM) has a ROC (Joel Greenblatt) % of 27.93% 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 Hong Leong Asia and its competitors. This is 23% above median its historical median of 22.66. Over the past decade, Hong Leong Asia's ROC (Joel Greenblatt) % has ranged from 8.12 to 34.88. According to the industry distribution chart, Hong Leong Asia ranks #213 out of 1331 companies in the Vehicles & Parts industry, placing it in the top 16%.
Is Hong Leong Asia's ROC (Joel Greenblatt) % too high?
Hong Leong Asia's current ROC (Joel Greenblatt) % of 27.93% is 23% above median its 10-year median of 22.66. Over the past 10 years, this metric has ranged from a low of 8.12 to a high of 34.88. The Vehicles & Parts industry median ROC (Joel Greenblatt) % is 12.03. Hong Leong Asia's value of 27.93% is 132.2% above this industry median. Based on the distribution chart, Hong Leong Asia ranks #213 out of 1331 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Hong Leong Asia has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Leong Asia's ROC (Joel Greenblatt) % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Hong Leong Asia ranks #213 out of 1331 companies for ROC (Joel Greenblatt) %. This places Hong Leong Asia in the top 16% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 12.03. Hong Leong Asia's value of 27.93% is 132.2% above this benchmark. Historically, Hong Leong Asia's own ROC (Joel Greenblatt) % has ranged from 8.12 to 34.88 over the past decade. While the company's 10-year median is 22.66 vs. the industry median of 12.03, Hong Leong Asia 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 Vehicles & Parts company?
The median ROC (Joel Greenblatt) % among Vehicles & Parts companies is 12.03, based on 1,331 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. Hong Leong Asia's current ROC (Joel Greenblatt) % of 27.93% is 132.2% 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 Hong Leong Asia and its competitors. For the Vehicles & Parts industry, the median ROC (Joel Greenblatt) % is 12.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Leong Asia's current ROC (Joel Greenblatt) % is 27.93%, which is 23% above median its own 10-year median of 22.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Leong Asia stock overvalued right now?
Based on GuruFocus' analysis, Hong Leong Asia (FRA:HOM) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.66, compared to a current price of €1.90 — trading 187.9% above its estimated fair value. The current ROC (Joel Greenblatt) % is 27.93%, which is 23% above median its 10-year median of 22.66 and 132.2% above the Vehicles & Parts industry median of 12.03. Hong Leong Asia's overall GF Score™ is 62/100 with 3 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 Hong Leong Asia (FRA:HOM), the current ROC (Joel Greenblatt) % is 27.93% 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 Hong Leong Asia (FRA:HOM) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Leong Asia stock appears to be overvalued.
The current stock price of €1.90 is trading 187.9% above its estimated GF Value™ of €0.66.
GuruFocus considers Hong Leong Asia to be Significantly Overvalued.
Key valuation signals for FRA:HOM:
ROC (Joel Greenblatt) %: 27.93% (23% above median its 10-year median of 22.66)
GF Value™: €0.66 vs. price of €1.90 (187.9% above fair value)
Industry Position: 132.2% above the Vehicles & Parts median (#213 of 1331)
No single metric tells the full story. See the FRA:HOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Leong Asia Ltd is the industrial manufacturing and distribution division of Hong Leong Group Singapore. It operates as the diversified industrial conglomerate in China and Southeast Asia. Its reportable segments are Powertrain solutions: engines for on-road, off-road, genset and marine applications. and Building materials: cement, precast concrete products, ready-mix concrete and quarry products. Geographically it derives key revenue from China.
62GF Score
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