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Nippon Denko CoFRA:NJ5 -4.42%73 ROC (Joel Greenblatt) % is 9.90% as of Dec. 2025, which is 70% above its 10-year median of 5.83. GuruFocus rates FRA:NJ5 with a GF Score™ of 73/100 and a GF Value™ of €1.62. The stock has 4 warning signs investors should review. Among 632 Steel companies, Nippon Denko Co ranks worse than 52.22% 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. Nippon Denko Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 9.90%.
The historical rank and industry rank for Nippon Denko Co's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:NJ5'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -24.13 Med: 5.83 Max: 18.89
Current: 6.69
During the past 13 years, Nippon Denko Co's highest ROC (Joel Greenblatt) % was 18.89%. The lowest was -24.13%. And the median was 5.83%.
FRA:NJ5's ROC (Joel Greenblatt) % is ranked worse than 52.22% of 632
companies
in the Steel industry
Industry Median: 7.095
vs FRA:NJ5: 6.69
Nippon Denko Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -7.40% per year.
Nippon Denko Co (FRA:NJ5) 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.
Nippon Denko Co ROC (Joel Greenblatt) % Related Terms
Nippon Denko Co ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Nippon Denko 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:NJ5 vs NUE, STLD, RS: ROC (Joel Greenblatt) % Comparison
For the Steel subindustry, Nippon Denko 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.
Nippon Denko Co ROC (Joel Greenblatt) % vs Steel Industry
For the Steel industry and Basic Materials sector, Nippon Denko Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Nippon Denko Co's ROC (Joel Greenblatt) % falls into.
Nippon Denko Co 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 (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 9.90% mean?
Nippon Denko Co (FRA:NJ5) has a ROC (Joel Greenblatt) % of 9.90% 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 Nippon Denko Co and its competitors. This is 70% above median its historical median of 5.83. According to the industry distribution chart, Nippon Denko Co ranks #330 out of 632 companies in the Steel industry, placing it in the top 52.2%.
Is Nippon Denko Co's ROC (Joel Greenblatt) % too high?
Nippon Denko Co's current ROC (Joel Greenblatt) % of 9.90% is 70% above median its 10-year median of 5.83. The Steel industry median ROC (Joel Greenblatt) % is 7.10. Nippon Denko Co's value of 9.90% is 39.5% above this industry median. Based on the distribution chart, Nippon Denko Co ranks #330 out of 632 companies in the Steel industry, which is below the industry midpoint. Overall, Nippon Denko Co has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Nippon Denko Co's ROC (Joel Greenblatt) % compare to NUE and STLD?
According to the Steel industry distribution chart, Nippon Denko Co ranks #330 out of 632 companies for ROC (Joel Greenblatt) %. This places Nippon Denko Co in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 7.10. Nippon Denko Co's value of 9.90% is 39.5% above this benchmark. While the company's 10-year median is 5.83 vs. the industry median of 7.10, Nippon Denko 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 Steel company?
The median ROC (Joel Greenblatt) % among Steel companies is 7.10, based on 632 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. Nippon Denko Co's current ROC (Joel Greenblatt) % of 9.90% is 39.5% 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 Nippon Denko Co and its competitors. For the Steel industry, the median ROC (Joel Greenblatt) % is 7.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Denko Co's current ROC (Joel Greenblatt) % is 9.90%, which is 70% above median its own 10-year median of 5.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Denko Co stock overvalued right now?
Nippon Denko Co (FRA:NJ5) has a current ROC (Joel Greenblatt) % of 9.90%. The stock's GF Value™ is €1.62, compared to a current price of €2.16 — trading 33.3% above its estimated fair value. The current ROC (Joel Greenblatt) % is 9.90%, which is 70% above median its 10-year median of 5.83 and 39.5% above the Steel industry median of 7.10. Nippon Denko Co's overall GF Score™ is 73/100 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 Nippon Denko Co (FRA:NJ5), the current ROC (Joel Greenblatt) % is 9.90% 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 Nippon Denko Co (FRA:NJ5) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Denko Co stock appears to be overvalued.
The current stock price of €2.16 is trading 33.3% above its estimated GF Value™ of €1.62.
Key valuation signals for FRA:NJ5:
ROC (Joel Greenblatt) %: 9.90% (70% above median its 10-year median of 5.83)
GF Value™: €1.62 vs. price of €2.16 (33.3% above fair value)
Industry Position: 39.5% above the Steel median (#330 of 632)
No single metric tells the full story. See the FRA:NJ5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Denko Co Ltd is mainly engaged in the manufacturing and distribution of ferroalloys. In addition, it is also involved in the electric power generation. The company's core business activities are categorized into four segments: Ferroalloys, Functional Materials, Environment, and Other. The company serves a diverse range of markets including power companies, agricultural cooperatives, local governments and companies discharging industrial waste.
73GF Score
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