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PACCARHAM:PAE +0.39%81 ROC (Joel Greenblatt) % is 10.92% as of Mar. 2026, which is 31% below its 10-year median of 15.87. GuruFocus rates HAM:PAE with a GF Score™ of 81/100 and a GF Value™ of €75.89. The stock has 7 warning signs investors should review. Among 209 Farm & Heavy Construction Machinery companies, PACCAR ranks worse than 56.46% 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. PACCAR's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 10.92%.
The historical rank and industry rank for PACCAR's ROC (Joel Greenblatt) % or its related term are showing as below:
HAM:PAE'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 9.18 Med: 15.87 Max: 29.79
Current: 10.91
During the past 13 years, PACCAR's highest ROC (Joel Greenblatt) % was 29.79%. The lowest was 9.18%. And the median was 15.87%.
HAM:PAE's ROC (Joel Greenblatt) % is ranked worse than 56.46% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 13.24
vs HAM:PAE: 10.91
PACCAR's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 10.40% per year.
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.
The historical data trend for PACCAR'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.
HAM:PAE vs CNH, OSK, AGCO: ROC (Joel Greenblatt) % Comparison
For the Farm & Heavy Construction Machinery subindustry, PACCAR'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.
PACCAR ROC (Joel Greenblatt) % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, PACCAR's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where PACCAR'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 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 10.92% mean?
PACCAR (HAM:PAE) has a ROC (Joel Greenblatt) % of 10.92% 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 PACCAR and its competitors. This is 31% below median its historical median of 15.87. Over the past decade, PACCAR's ROC (Joel Greenblatt) % has ranged from 9.18 to 29.79. According to the industry distribution chart, PACCAR ranks #118 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 56.5%.
Is PACCAR's ROC (Joel Greenblatt) % too high?
PACCAR's current ROC (Joel Greenblatt) % of 10.92% is 31% below median its 10-year median of 15.87. Over the past 10 years, this metric has ranged from a low of 9.18 to a high of 29.79. The Farm & Heavy Construction Machinery industry median ROC (Joel Greenblatt) % is 13.24. PACCAR's value of 10.92% is 17.5% below this industry median. Based on the distribution chart, PACCAR ranks #118 out of 209 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, PACCAR has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does PACCAR's ROC (Joel Greenblatt) % compare to CNH and OSK?
According to the Farm & Heavy Construction Machinery industry distribution chart, PACCAR ranks #118 out of 209 companies for ROC (Joel Greenblatt) %. This places PACCAR in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 13.24. PACCAR's value of 10.92% is 17.5% below this benchmark. Historically, PACCAR's own ROC (Joel Greenblatt) % has ranged from 9.18 to 29.79 over the past decade. While the company's 10-year median is 15.87 vs. the industry median of 13.24, PACCAR 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 a Farm & Heavy Construction Machinery company?
The median ROC (Joel Greenblatt) % among Farm & Heavy Construction Machinery companies is 13.24, based on 209 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. PACCAR's current ROC (Joel Greenblatt) % of 10.92% is 17.5% 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 PACCAR and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROC (Joel Greenblatt) % is 13.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PACCAR's current ROC (Joel Greenblatt) % is 10.92%, which is 31% below median its own 10-year median of 15.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PACCAR stock overvalued right now?
PACCAR (HAM:PAE) has a current ROC (Joel Greenblatt) % of 10.92%. The stock's GF Value™ is €75.89, compared to a current price of €117.14 — trading 54.4% above its estimated fair value. The current ROC (Joel Greenblatt) % is 10.92%, which is 31% below median its 10-year median of 15.87 and 17.5% below the Farm & Heavy Construction Machinery industry median of 13.24. PACCAR's overall GF Score™ is 81/100 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 PACCAR (HAM:PAE), the current ROC (Joel Greenblatt) % is 10.92% 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 PACCAR (HAM:PAE) Overvalued in 2026?
Based on GuruFocus' analysis, PACCAR stock appears to be overvalued.
The current stock price of €117.14 is trading 54.4% above its estimated GF Value™ of €75.89.
Key valuation signals for HAM:PAE:
ROC (Joel Greenblatt) %: 10.92% (31% below median its 10-year median of 15.87)
GF Value™: €75.89 vs. price of €117.14 (54.4% above fair value)
Industry Position: 17.5% below the Farm & Heavy Construction Machinery median (#118 of 209)
No single metric tells the full story. See the HAM:PAE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paccar is a leading manufacturer of medium- and heavy-duty trucks under the premium nameplates Kenworth and Peterbilt, which are primarily sold in the Americas and Australia, and DAF, which primarily services Europe and South America. The trucks segment (74% sales) goes to market through a network of 2,200 independent dealers. Paccar maintains an internal finance subsidiary that provides retail and wholesale financing for customers and dealers (6% sales). In recent years, Paccar has aggressively expanded its parts business (20% of sales), including engines, axles, and transmissions for its own truck brands as well as independent producers. The company commands 30% of the Class 8 market share in North America and 15% of the heavy-duty market share in Europe.
81GF Score
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