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. Fletcher Building's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was -2.99%.
The historical rank and industry rank for Fletcher Building's ROC (Joel Greenblatt) % or its related term are showing as below:
FRCEF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -7.81 Med: 9.66 Max: 22.15
Current: -7.33
During the past 13 years, Fletcher Building's highest ROC (Joel Greenblatt) % was 22.15%. The lowest was -7.81%. And the median was 9.66%.
FRCEF's ROC (Joel Greenblatt) % is ranked worse than 86.76% of 408
companies
in the Building Materials industry
Industry Median: 8.6
vs FRCEF: -7.33
Fletcher Building's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Fletcher Building (OTCPK:FRCEF) 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.
Fletcher Building ROC (Joel Greenblatt) % Related Terms
Fletcher Building ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Fletcher Building'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.
FRCEF vs CRH, VMC, MLM: ROC (Joel Greenblatt) % Comparison
For the Building Materials subindustry, Fletcher Building'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.
Fletcher Building ROC (Joel Greenblatt) % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Fletcher Building's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Fletcher Building's ROC (Joel Greenblatt) % falls into.
Fletcher Building 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 -2.99% mean?
Fletcher Building (FRCEF) has a ROC (Joel Greenblatt) % of -2.99% 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 Fletcher Building and its competitors. According to the industry distribution chart, Fletcher Building ranks #354 out of 408 companies in the Building Materials industry, placing it in the top 86.8%.
Is Fletcher Building's ROC (Joel Greenblatt) % too high?
Fletcher Building's current ROC (Joel Greenblatt) % is -2.99%. Based on the distribution chart, Fletcher Building ranks #354 out of 408 companies in the Building Materials industry, which is in the bottom quartile relative to peers. Overall, Fletcher Building has a GF Score™ of 51/100, reflecting its overall financial health beyond just this single metric.
How does Fletcher Building's ROC (Joel Greenblatt) % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Fletcher Building ranks #354 out of 408 companies for ROC (Joel Greenblatt) %. This places Fletcher Building in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 8.60. 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 Building Materials company?
The median ROC (Joel Greenblatt) % among Building Materials companies is 8.60, based on 408 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 Fletcher Building and its competitors. For the Building Materials industry, the median ROC (Joel Greenblatt) % is 8.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fletcher Building's current ROC (Joel Greenblatt) % is -2.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fletcher Building stock overvalued right now?
Fletcher Building (FRCEF) has a current ROC (Joel Greenblatt) % of -2.99%. The stock's GF Value™ is $1.16, compared to a current price of $1.63 — trading 40.5% above its estimated fair value. The current ROC (Joel Greenblatt) % is -2.99%. Fletcher Building's overall GF Score™ is 51/100 with 7 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 Fletcher Building (FRCEF), the current ROC (Joel Greenblatt) % is -2.99% 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 Fletcher Building (FRCEF) Overvalued in 2026?
Based on GuruFocus' analysis, Fletcher Building stock appears to be overvalued.
The current stock price of $1.63 is trading 40.5% above its estimated GF Value™ of $1.16.
Key valuation signals for FRCEF:
ROC (Joel Greenblatt) %: -2.99%
GF Value™: $1.16 vs. price of $1.63 (40.5% above fair value)
No single metric tells the full story. See the FRCEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fletcher Building is a New Zealand-based building materials company with operations focused in New Zealand, but also extending to Australia. It has a conglomerate structure with diverse operations across concrete, building products, steel, retail distribution, and development. Most revenue is derived from new house construction, with smaller earnings contributions from commercial and infrastructure construction.
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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