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Mercury SystemsFRA:MCY -7.21%61 ROC (Joel Greenblatt) % is 5.68% as of Mar. 2026, which is 76% below its 10-year median of 23.40. GuruFocus rates FRA:MCY with a GF Score™ of 61/100 and a GF Value™ of €37.19 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 357 Aerospace & Defense companies, Mercury Systems ranks worse than 63.31% 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. Mercury Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 5.68%.
The historical rank and industry rank for Mercury Systems's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:MCY'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -36.81 Med: 23.4 Max: 33.38
Current: 3.97
During the past 13 years, Mercury Systems's highest ROC (Joel Greenblatt) % was 33.38%. The lowest was -36.81%. And the median was 23.40%.
FRA:MCY's ROC (Joel Greenblatt) % is ranked worse than 63.31% of 357
companies
in the Aerospace & Defense industry
Industry Median: 10.76
vs FRA:MCY: 3.97
Mercury Systems's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Mercury Systems (FRA:MCY) 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.
Mercury Systems ROC (Joel Greenblatt) % Related Terms
Mercury Systems ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Mercury Systems'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:MCY vs DPC, VSEC, KRMN: ROC (Joel Greenblatt) % Comparison
For the Aerospace & Defense subindustry, Mercury Systems'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.
Mercury Systems ROC (Joel Greenblatt) % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Mercury Systems's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Mercury Systems's ROC (Joel Greenblatt) % falls into.
Mercury Systems 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 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 5.68% mean?
Mercury Systems (FRA:MCY) has a ROC (Joel Greenblatt) % of 5.68% 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 Mercury Systems and its competitors. This is 76% below median its historical median of 23.40. According to the industry distribution chart, Mercury Systems ranks #226 out of 357 companies in the Aerospace & Defense industry, placing it in the top 63.3%.
Is Mercury Systems' ROC (Joel Greenblatt) % too high?
Mercury Systems' current ROC (Joel Greenblatt) % of 5.68% is 76% below median its 10-year median of 23.40. The Aerospace & Defense industry median ROC (Joel Greenblatt) % is 10.76. Mercury Systems' value of 5.68% is 47.2% below this industry median. Based on the distribution chart, Mercury Systems ranks #226 out of 357 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Mercury Systems has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mercury Systems' ROC (Joel Greenblatt) % compare to DPC and VSEC?
According to the Aerospace & Defense industry distribution chart, Mercury Systems ranks #226 out of 357 companies for ROC (Joel Greenblatt) %. This places Mercury Systems in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 10.76. Mercury Systems' value of 5.68% is 47.2% below this benchmark. While the company's 10-year median is 23.40 vs. the industry median of 10.76, Mercury Systems has consistently been below 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 Aerospace & Defense company?
The median ROC (Joel Greenblatt) % among Aerospace & Defense companies is 10.76, based on 357 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. Mercury Systems's current ROC (Joel Greenblatt) % of 5.68% is 47.2% below 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 Mercury Systems and its competitors. For the Aerospace & Defense industry, the median ROC (Joel Greenblatt) % is 10.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercury Systems's current ROC (Joel Greenblatt) % is 5.68%, which is 76% below median its own 10-year median of 23.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercury Systems stock overvalued right now?
Based on GuruFocus' analysis, Mercury Systems (FRA:MCY) is currently considered Significantly Overvalued. The stock's GF Value™ is €37.19, compared to a current price of €83.44 — trading 124.4% above its estimated fair value. The current ROC (Joel Greenblatt) % is 5.68%, which is 76% below median its 10-year median of 23.40 and 47.2% below the Aerospace & Defense industry median of 10.76. Mercury Systems' overall GF Score™ is 61/100 with 4 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 Mercury Systems (FRA:MCY), the current ROC (Joel Greenblatt) % is 5.68% 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 Mercury Systems (FRA:MCY) Overvalued in 2026?
Based on GuruFocus' analysis, Mercury Systems stock appears to be overvalued.
The current stock price of €83.44 is trading 124.4% above its estimated GF Value™ of €37.19.
GuruFocus considers Mercury Systems to be Significantly Overvalued.
Key valuation signals for FRA:MCY:
ROC (Joel Greenblatt) %: 5.68% (76% below median its 10-year median of 23.40)
GF Value™: €37.19 vs. price of €83.44 (124.4% above fair value)
Industry Position: 47.2% below the Aerospace & Defense median (#226 of 357)
No single metric tells the full story. See the FRA:MCY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercury Systems Inc is a commercial technology company serving the aerospace and defense industry. The company envisions, creates, and delivers secure open architecture solutions powering a broad range of mission-critical applications in challenging and demanding environments. Its Mercury Processing Platform spans the full breadth of signal processing from radio frequency front end to the human-machine interface to convert meaningful data, gathered in remote and hostile environments, into critical decisions. The company manufactures components, products, modules, and subsystems and sells to defense prime contractors, the U.S. government, original equipment manufacturers, and commercial aerospace companies. Geographically, it derives maximum revenue from the United States.
61GF Score
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