The Kraft Heinz CoKHC +1.44%55 ROC (Joel Greenblatt) % is 68.50% as of Mar. 2026, which is 26% above its 10-year median of 54.58. GuruFocus rates KHC with a GF Score™ of 55/100 and a GF Value™ of $30.60 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,969 Consumer Packaged Goods companies, The Kraft Heinz Co ranks worse than 94.21% 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. The Kraft Heinz Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 68.50%.
The historical rank and industry rank for The Kraft Heinz Co's ROC (Joel Greenblatt) % or its related term are showing as below:
KHC'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -135.39 Med: 54.58 Max: 97.23
Current: -62.11
During the past 13 years, The Kraft Heinz Co's highest ROC (Joel Greenblatt) % was 97.23%. The lowest was -135.39%. And the median was 54.58%.
KHC's ROC (Joel Greenblatt) % is ranked worse than 94.21% of 1969
companies
in the Consumer Packaged Goods industry
Industry Median: 11.99
vs KHC: -62.11
The Kraft Heinz Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
The Kraft Heinz Co (NAS:KHC) 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.
The Kraft Heinz Co ROC (Joel Greenblatt) % Related Terms
The Kraft Heinz Co ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for The Kraft Heinz 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.
KHC vs GIS, HRL, MKC: ROC (Joel Greenblatt) % Comparison
For the Packaged Foods subindustry, The Kraft Heinz 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.
The Kraft Heinz Co ROC (Joel Greenblatt) % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Kraft Heinz Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where The Kraft Heinz Co's ROC (Joel Greenblatt) % falls into.
The Kraft Heinz 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 68.50% mean?
The Kraft Heinz Co (KHC) has a ROC (Joel Greenblatt) % of 68.50% 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 The Kraft Heinz Co and its competitors. This is 26% above median its historical median of 54.58. According to the industry distribution chart, The Kraft Heinz Co ranks #1855 out of 1969 companies in the Consumer Packaged Goods industry, placing it in the top 94.2%.
Is The Kraft Heinz Co's ROC (Joel Greenblatt) % too high?
The Kraft Heinz Co's current ROC (Joel Greenblatt) % of 68.50% is 26% above median its 10-year median of 54.58. The Consumer Packaged Goods industry median ROC (Joel Greenblatt) % is 11.99. The Kraft Heinz Co's value of 68.50% is 471.3% above this industry median. Based on the distribution chart, The Kraft Heinz Co ranks #1855 out of 1969 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, The Kraft Heinz Co has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Kraft Heinz Co's ROC (Joel Greenblatt) % compare to GIS and HRL?
According to the Consumer Packaged Goods industry distribution chart, The Kraft Heinz Co ranks #1855 out of 1969 companies for ROC (Joel Greenblatt) %. This places The Kraft Heinz Co in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.99. The Kraft Heinz Co's value of 68.50% is 471.3% above this benchmark. While the company's 10-year median is 54.58 vs. the industry median of 11.99, The Kraft Heinz 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 Consumer Packaged Goods company?
The median ROC (Joel Greenblatt) % among Consumer Packaged Goods companies is 11.99, based on 1,969 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. The Kraft Heinz Co's current ROC (Joel Greenblatt) % of 68.50% is 471.3% 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 The Kraft Heinz Co and its competitors. For the Consumer Packaged Goods industry, the median ROC (Joel Greenblatt) % is 11.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Kraft Heinz Co's current ROC (Joel Greenblatt) % is 68.50%, which is 26% above median its own 10-year median of 54.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Kraft Heinz Co stock overvalued right now?
Based on GuruFocus' analysis, The Kraft Heinz Co (KHC) is currently considered Modestly Undervalued. The stock's GF Value™ is $30.60, compared to a current price of $25.37 — trading 17.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 68.50%, which is 26% above median its 10-year median of 54.58 and 471.3% above the Consumer Packaged Goods industry median of 11.99. The Kraft Heinz Co's overall GF Score™ is 55/100 with 1 warning sign 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 The Kraft Heinz Co (KHC), the current ROC (Joel Greenblatt) % is 68.50% 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 The Kraft Heinz Co (KHC) Overvalued in 2026?
Based on GuruFocus' analysis, The Kraft Heinz Co stock appears to be undervalued.
The current stock price of $25.37 is trading 17.1% below its estimated GF Value™ of $30.60.
GuruFocus considers The Kraft Heinz Co to be Modestly Undervalued.
Key valuation signals for KHC:
ROC (Joel Greenblatt) %: 68.50% (26% above median its 10-year median of 54.58)
GF Value™: $30.60 vs. price of $25.37 (17.1% below fair value)
Industry Position: 471.3% above the Consumer Packaged Goods median (#1855 of 1969)
No single metric tells the full story. See the KHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
In July 2015, Kraft merged with Heinz to create one of North America's largest food and beverage manufacturers. Beyond its namesake brands, its portfolio includes Oscar Mayer, Velveeta, and Philadelphia. While the retail channel drives around 85% of its total sales, the firm also maintains a growing foodservice presence. Outside North America, Kraft Heinz's global reach encompasses a distribution network in Europe and emerging markets, which accounts for around 25% of its consolidated sales base. The company's products are sold in more than 190 countries and territories.
55GF Score
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