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. Kingdee International Software Group Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 18.79%.
KGDEF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -55.05 Med: -4.4 Max: 91.08
Current: 2.45
During the past 13 years, Kingdee International Software Group Co's highest ROC (Joel Greenblatt) % was 91.08%. The lowest was -55.05%. And the median was -4.40%.
KGDEF's ROC (Joel Greenblatt) % is ranked worse than 60.19% of 2801
companies
in the Software industry
Industry Median: 19.99
vs KGDEF: 2.45
Kingdee International Software Group Co (OTCPK:KGDEF) 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.
* 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.
Kingdee International Software Group Co ROC (Joel Greenblatt) % Chart
Kingdee International Software Group Co Annual Data
KGDEF vs UBER, SHOP, CRM: ROC (Joel Greenblatt) % Comparison
For the Software - Application subindustry, Kingdee International Software Group 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.
Kingdee International Software Group Co ROC (Joel Greenblatt) % vs Software Industry
Kingdee International Software Group 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 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 18.79% mean?
Kingdee International Software Group Co (KGDEF) has a ROC (Joel Greenblatt) % of 18.79% 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 Kingdee International Software Group Co and its competitors. According to the industry distribution chart, Kingdee International Software Group Co ranks #1686 out of 2801 companies in the Software industry, placing it in the top 60.2%.
Is Kingdee International Software Group Co's ROC (Joel Greenblatt) % too high?
Kingdee International Software Group Co's current ROC (Joel Greenblatt) % is 18.79%. The Software industry median ROC (Joel Greenblatt) % is 19.99. Kingdee International Software Group Co's value of 18.79% is 6% below this industry median. Based on the distribution chart, Kingdee International Software Group Co ranks #1686 out of 2801 companies in the Software industry, which is below the industry midpoint. Overall, Kingdee International Software Group Co has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kingdee International Software Group Co's ROC (Joel Greenblatt) % compare to UBER and SHOP?
According to the Software industry distribution chart, Kingdee International Software Group Co ranks #1686 out of 2801 companies for ROC (Joel Greenblatt) %. This places Kingdee International Software Group Co in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 19.99. Kingdee International Software Group Co's value of 18.79% is 6% below this benchmark. 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 Software company?
The median ROC (Joel Greenblatt) % among Software companies is 19.99, based on 2,801 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. Kingdee International Software Group Co's current ROC (Joel Greenblatt) % of 18.79% is 6% 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 Kingdee International Software Group Co and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 19.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kingdee International Software Group Co's current ROC (Joel Greenblatt) % is 18.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kingdee International Software Group Co stock overvalued right now?
Based on GuruFocus' analysis, Kingdee International Software Group Co (KGDEF) is currently considered Significantly Undervalued. The stock's GF Value™ is $1.71, compared to a current price of $0.75 — trading 56.2% below its estimated fair value. The current ROC (Joel Greenblatt) % is 18.79% and 6% below the Software industry median of 19.99. Kingdee International Software Group Co's overall GF Score™ is 62/100 with 3 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 Kingdee International Software Group Co (KGDEF), the current ROC (Joel Greenblatt) % is 18.79% 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 Kingdee International Software Group Co (KGDEF) Overvalued in 2026?
Based on GuruFocus' analysis, Kingdee International Software Group Co stock appears to be undervalued.
The current stock price of $0.75 is trading 56.2% below its estimated GF Value™ of $1.71.
GuruFocus considers Kingdee International Software Group Co to be Significantly Undervalued.
Key valuation signals for KGDEF:
ROC (Joel Greenblatt) %: 18.79%
GF Value™: $1.71 vs. price of $0.75 (56.2% below fair value)
Industry Position: 6% below the Software median (#1686 of 2801)
No single metric tells the full story. See the KGDEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kingdee International Software Group Co Business Description
Kingdee International Software Group Co Ltd is engaged in cloud services, including enterprise cloud services, small & micro business finance cloud services, and industry cloud services; and enterprise resource planning business, including development and sales of software products. It has two operating segments: Subscription and software- Including subscriptions and sales of software, and Implementation, consulting, maintenance services, and others - including provision of subscription and software implementation services, software solution consulting, maintenance, upgrade, and other supporting services, and others.
62GF Score
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