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. Sumitomo Chemical Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -3.99%.
The historical rank and industry rank for Sumitomo Chemical Co's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:SMM'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -30.36 Med: 14.4 Max: 27.74
Current: 13.63
During the past 13 years, Sumitomo Chemical Co's highest ROC (Joel Greenblatt) % was 27.74%. The lowest was -30.36%. And the median was 14.40%.
FRA:SMM's ROC (Joel Greenblatt) % is ranked better than 61.99% of 1602
companies
in the Chemicals industry
Industry Median: 9.385
vs FRA:SMM: 13.63
Sumitomo Chemical Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Sumitomo Chemical Co (FRA:SMM) 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.
Sumitomo Chemical Co ROC (Joel Greenblatt) % Related Terms
Sumitomo Chemical Co ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Sumitomo Chemical 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.
Sumitomo Chemical Co ROC (Joel Greenblatt) % Chart
FRA:SMM vs DOW: ROC (Joel Greenblatt) % Comparison
For the Chemicals subindustry, Sumitomo Chemical 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.
Sumitomo Chemical Co ROC (Joel Greenblatt) % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sumitomo Chemical Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Sumitomo Chemical Co's ROC (Joel Greenblatt) % falls into.
Sumitomo Chemical 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 (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 -3.99% mean?
Sumitomo Chemical Co (FRA:SMM) has a ROC (Joel Greenblatt) % of -3.99% 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 Sumitomo Chemical Co and its competitors. According to the industry distribution chart, Sumitomo Chemical Co ranks #609 out of 1602 companies in the Chemicals industry, placing it in the top 38%.
Is Sumitomo Chemical Co's ROC (Joel Greenblatt) % too high?
Sumitomo Chemical Co's current ROC (Joel Greenblatt) % is -3.99%. Based on the distribution chart, Sumitomo Chemical Co ranks #609 out of 1602 companies in the Chemicals industry, which is above the industry midpoint. Overall, Sumitomo Chemical Co has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Chemical Co's ROC (Joel Greenblatt) % compare to DOW?
According to the Chemicals industry distribution chart, Sumitomo Chemical Co ranks #609 out of 1602 companies for ROC (Joel Greenblatt) %. This puts Sumitomo Chemical Co in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 9.39. 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 Chemicals company?
The median ROC (Joel Greenblatt) % among Chemicals companies is 9.39, based on 1,602 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. 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 Sumitomo Chemical Co and its competitors. For the Chemicals industry, the median ROC (Joel Greenblatt) % is 9.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Chemical Co's current ROC (Joel Greenblatt) % is -3.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Chemical Co (FRA:SMM) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.86, compared to a current price of €2.86 — trading 53.8% above its estimated fair value. The current ROC (Joel Greenblatt) % is -3.99%. Sumitomo Chemical Co's overall GF Score™ is 59/100 with 6 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 Sumitomo Chemical Co (FRA:SMM), the current ROC (Joel Greenblatt) % is -3.99% 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 Sumitomo Chemical Co (FRA:SMM) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Chemical Co stock appears to be overvalued.
The current stock price of €2.86 is trading 53.8% above its estimated GF Value™ of €1.86.
GuruFocus considers Sumitomo Chemical Co to be Significantly Overvalued.
Key valuation signals for FRA:SMM:
ROC (Joel Greenblatt) %: -3.99%
GF Value™: €1.86 vs. price of €2.86 (53.8% above fair value)
No single metric tells the full story. See the FRA:SMM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Chemical Co Ltd is a Japanese chemical manufacturer. The company operates through six segments. Advanced Medical Solutions covers small molecule drugs, medical oligonucleotides, and regenerative medicine contract manufacturing. Agro & Life Solutions provides pesticides, fertilizers, agricultural materials, insecticides, and feed additives. Essential & Green Materials include synthetic resins, industrial chemicals, methacrylics, aluminum, alumina, and synthetic rubber. ICT & Mobility Solutions handles optical products, semiconductor materials, touch panels, engineering plastics, and battery materials. Sumitomo Pharma focuses on small-molecule drugs, while Others include reagents, energy, plant engineering, transport, and warehousing.
59GF Score
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