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Li Ning CoFRA:LNL +2.12%98 ROC (Joel Greenblatt) % is 53.19% as of Dec. 2025, which is 29% below its 10-year median of 75.43. GuruFocus rates FRA:LNL with a GF Score™ of 98/100 and a GF Value™ of €54.50. The stock has 3 warning signs investors should review. Among 847 Travel & Leisure companies, Li Ning Co ranks better than 87.49% 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. Li Ning Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 53.19%.
The historical rank and industry rank for Li Ning Co's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:LNL'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 21.5 Med: 75.43 Max: 214.77
Current: 70.51
During the past 13 years, Li Ning Co's highest ROC (Joel Greenblatt) % was 214.77%. The lowest was 21.50%. And the median was 75.43%.
FRA:LNL's ROC (Joel Greenblatt) % is ranked better than 87.49% of 847
companies
in the Travel & Leisure industry
Industry Median: 9.91
vs FRA:LNL: 70.51
Li Ning Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -16.80% per year.
Li Ning Co (FRA:LNL) 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.
Li Ning Co ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Li Ning Co'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:LNL vs AS, HAS, LTH: ROC (Joel Greenblatt) % Comparison
For the Leisure subindustry, Li Ning Co'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.
Li Ning Co ROC (Joel Greenblatt) % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Li Ning Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Li Ning Co'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 53.19% mean?
Li Ning Co (FRA:LNL) has a ROC (Joel Greenblatt) % of 53.19% 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 Li Ning Co and its competitors. This is 29% below median its historical median of 75.43. Over the past decade, Li Ning Co's ROC (Joel Greenblatt) % has ranged from 21.50 to 214.77. According to the industry distribution chart, Li Ning Co ranks #106 out of 847 companies in the Travel & Leisure industry, placing it in the top 12.5%.
Is Li Ning Co's ROC (Joel Greenblatt) % too high?
Li Ning Co's current ROC (Joel Greenblatt) % of 53.19% is 29% below median its 10-year median of 75.43. Over the past 10 years, this metric has ranged from a low of 21.50 to a high of 214.77. The Travel & Leisure industry median ROC (Joel Greenblatt) % is 9.91. Li Ning Co's value of 53.19% is 436.7% above this industry median. Based on the distribution chart, Li Ning Co ranks #106 out of 847 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Li Ning Co has a GF Score™ of 98/100, reflecting its overall financial health beyond just this single metric.
How does Li Ning Co's ROC (Joel Greenblatt) % compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, Li Ning Co ranks #106 out of 847 companies for ROC (Joel Greenblatt) %. This places Li Ning Co in the top 13% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 9.91. Li Ning Co's value of 53.19% is 436.7% above this benchmark. Historically, Li Ning Co's own ROC (Joel Greenblatt) % has ranged from 21.50 to 214.77 over the past decade. While the company's 10-year median is 75.43 vs. the industry median of 9.91, Li Ning Co 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 9.91, based on 847 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. Li Ning Co's current ROC (Joel Greenblatt) % of 53.19% is 436.7% 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 Li Ning Co and its competitors. For the Travel & Leisure industry, the median ROC (Joel Greenblatt) % is 9.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Li Ning Co's current ROC (Joel Greenblatt) % is 53.19%, which is 29% below median its own 10-year median of 75.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Li Ning Co stock overvalued right now?
Li Ning Co (FRA:LNL) has a current ROC (Joel Greenblatt) % of 53.19%. The stock's GF Value™ is €54.50, compared to a current price of €38.60 — trading 29.2% below its estimated fair value. The current ROC (Joel Greenblatt) % is 53.19%, which is 29% below median its 10-year median of 75.43 and 436.7% above the Travel & Leisure industry median of 9.91. Li Ning Co's overall GF Score™ is 98/100 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 Li Ning Co (FRA:LNL), the current ROC (Joel Greenblatt) % is 53.19% 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 Li Ning Co (FRA:LNL) Overvalued in 2026?
Based on GuruFocus' analysis, Li Ning Co stock appears to be undervalued.
The current stock price of €38.60 is trading 29.2% below its estimated GF Value™ of €54.50.
Key valuation signals for FRA:LNL:
ROC (Joel Greenblatt) %: 53.19% (29% below median its 10-year median of 75.43)
GF Value™: €54.50 vs. price of €38.60 (29.2% below fair value)
Industry Position: 436.7% above the Travel & Leisure median (#106 of 847)
No single metric tells the full story. See the FRA:LNL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Established in 1989, Li Ning is one of the largest sportswear companies in China. Headquartered in Beijing, Li Ning mainly sells professional and leisure footwear and apparel under the Li Ning brand. Despite having a single-brand strategy, Li Ning launched multiple sub-brands (such as China Li Ning and Li Ning 1990) to appeal to different demographics. As of the end of 2024, the company had 7,585 stores in China, of which 1,297 were directly operated, and the rest franchised.
98GF Score
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