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The Hongkong and Shanghai HotelsFRA:HSG 51 ROC (Joel Greenblatt) % is 13.02% as of Dec. 2025, which is 143% above its 10-year median of 5.36. GuruFocus rates FRA:HSG with a GF Score™ of 51/100 and a GF Value™ of €0.63 (Fairly Valued). The stock has 3 warning signs investors should review. Among 845 Travel & Leisure companies, The Hongkong and Shanghai Hotels ranks worse than 55.98% 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. The Hongkong and Shanghai Hotels's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 13.02%.
The historical rank and industry rank for The Hongkong and Shanghai Hotels's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:HSG'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -14.62 Med: 5.36 Max: 19.94
Current: 7.96
During the past 13 years, The Hongkong and Shanghai Hotels's highest ROC (Joel Greenblatt) % was 19.94%. The lowest was -14.62%. And the median was 5.36%.
FRA:HSG's ROC (Joel Greenblatt) % is ranked worse than 55.98% of 845
companies
in the Travel & Leisure industry
Industry Median: 10.04
vs FRA:HSG: 7.96
The Hongkong and Shanghai Hotels (FRA:HSG) 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.
* 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.
The Hongkong and Shanghai Hotels ROC (Joel Greenblatt) % Chart
FRA:HSG vs MAR, HLT, H: ROC (Joel Greenblatt) % Comparison
For the Lodging subindustry, The Hongkong and Shanghai Hotels'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.
The Hongkong and Shanghai Hotels ROC (Joel Greenblatt) % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, The Hongkong and Shanghai Hotels's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where The Hongkong and Shanghai Hotels's ROC (Joel Greenblatt) % falls into.
The Hongkong and Shanghai Hotels 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 13.02% mean?
The Hongkong and Shanghai Hotels (FRA:HSG) has a ROC (Joel Greenblatt) % of 13.02% 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 The Hongkong and Shanghai Hotels and its competitors. This is 143% above median its historical median of 5.36. According to the industry distribution chart, The Hongkong and Shanghai Hotels ranks #473 out of 845 companies in the Travel & Leisure industry, placing it in the top 56%.
Is The Hongkong and Shanghai Hotels' ROC (Joel Greenblatt) % too high?
The Hongkong and Shanghai Hotels' current ROC (Joel Greenblatt) % of 13.02% is 143% above median its 10-year median of 5.36. The Travel & Leisure industry median ROC (Joel Greenblatt) % is 10.04. The Hongkong and Shanghai Hotels' value of 13.02% is 29.7% above this industry median. Based on the distribution chart, The Hongkong and Shanghai Hotels ranks #473 out of 845 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, The Hongkong and Shanghai Hotels has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Hongkong and Shanghai Hotels' ROC (Joel Greenblatt) % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, The Hongkong and Shanghai Hotels ranks #473 out of 845 companies for ROC (Joel Greenblatt) %. This places The Hongkong and Shanghai Hotels in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 10.04. The Hongkong and Shanghai Hotels' value of 13.02% is 29.7% above this benchmark. While the company's 10-year median is 5.36 vs. the industry median of 10.04, The Hongkong and Shanghai Hotels 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 Travel & Leisure company?
The median ROC (Joel Greenblatt) % among Travel & Leisure companies is 10.04, based on 845 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. The Hongkong and Shanghai Hotels's current ROC (Joel Greenblatt) % of 13.02% is 29.7% 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 The Hongkong and Shanghai Hotels and its competitors. For the Travel & Leisure industry, the median ROC (Joel Greenblatt) % is 10.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Hongkong and Shanghai Hotels's current ROC (Joel Greenblatt) % is 13.02%, which is 143% above median its own 10-year median of 5.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Hongkong and Shanghai Hotels stock overvalued right now?
Based on GuruFocus' analysis, The Hongkong and Shanghai Hotels (FRA:HSG) is currently considered Fairly Valued. The stock's GF Value™ is €0.63, compared to a current price of €0.60 — trading 4.8% below its estimated fair value. The current ROC (Joel Greenblatt) % is 13.02%, which is 143% above median its 10-year median of 5.36 and 29.7% above the Travel & Leisure industry median of 10.04. The Hongkong and Shanghai Hotels' overall GF Score™ is 51/100 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 The Hongkong and Shanghai Hotels (FRA:HSG), the current ROC (Joel Greenblatt) % is 13.02% 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 The Hongkong and Shanghai Hotels (FRA:HSG) Overvalued in 2026?
Based on GuruFocus' analysis, The Hongkong and Shanghai Hotels stock appears to be undervalued.
The current stock price of €0.60 is trading 4.8% below its estimated GF Value™ of €0.63.
GuruFocus considers The Hongkong and Shanghai Hotels to be Fairly Valued.
Key valuation signals for FRA:HSG:
ROC (Joel Greenblatt) %: 13.02% (143% above median its 10-year median of 5.36)
GF Value™: €0.63 vs. price of €0.60 (4.8% below fair value)
Industry Position: 29.7% above the Travel & Leisure median (#473 of 845)
No single metric tells the full story. See the FRA:HSG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Hongkong and Shanghai Hotels Business Description
The Hongkong and Shanghai Hotels Ltd is a luxury hospitality and real estate group. It owns and operates hotel properties under the Peninsula brand located in city centres across Asia, the U.S., and Europe. The company's assets comprise a small number of ultra-luxury hotels, real estate assets, and tourism assets, including The Peak Tram, one of Hong Kong's tourist attractions. The group's reportable segments are: Hotels, Commercial Properties, Peak Tram, Retail, and Others. Maximum revenue is generated from its Hotels segment, which includes revenue generated from operating hotels, leasing of commercial shopping arcades, and office premises located within the hotel buildings. Geographically, the group generates the majority of its revenue from Greater China.
51GF 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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