Aeorema Communications (LSE:AEO) ROC (Joel Greenblatt) %: 68.78% (As of Jun. 2025) — 80% Below Median

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LSE:AEO Aeorema Communications PLC LSE:AEO
58 GF Score
Price £0.62
GF Value £0.79
Valuation Modestly Undervalued
! 9 Warning Signs
View Full Analysis

What is Aeorema Communications ROC (Joel Greenblatt) %?

Aeorema Communications LSE:AEO 58 ROC (Joel Greenblatt) % is 68.78% as of Jun. 2025, which is 80% below its 10-year median of 345.77. GuruFocus rates LSE:AEO with a GF Score™ of 58/100 and a GF Value™ of £0.79 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,015 Media - Diversified companies, Aeorema Communications ranks better than 68.37% 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. Aeorema Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2025 was 68.78%.

The historical rank and industry rank for Aeorema Communications's ROC (Joel Greenblatt) % or its related term are showing as below:

LSE:AEO' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -73.74   Med: 345.77   Max: 852.94
Current: 31.05

During the past 13 years, Aeorema Communications's highest ROC (Joel Greenblatt) % was 852.94%. The lowest was -73.74%. And the median was 345.77%.

LSE:AEO's ROC (Joel Greenblatt) % is ranked better than
68.37% of 1015 companies
in the Media - Diversified industry
Industry Median: 9.81 vs LSE:AEO: 31.05

Aeorema Communications's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.


Aeorema Communications  (LSE:AEO) 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.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


Aeorema Communications ROC (Joel Greenblatt) % Related Terms


Aeorema Communications ROC (Joel Greenblatt) % Historical Data

* Premium members only.

The historical data trend for Aeorema Communications'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.

Aeorema Communications ROC (Joel Greenblatt) % Chart

Aeorema Communications Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -73.74 -47.02 149.14 100.69 46.76

Aeorema Communications Semi-Annual Data
Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25
ROC (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 130.64 -33.40 114.17 -13.77 68.78

LSE:AEO vs NFLX, DIS, WBD: ROC (Joel Greenblatt) % Comparison

For the Entertainment subindustry, Aeorema Communications'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.


Aeorema Communications ROC (Joel Greenblatt) % vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Aeorema Communications's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Aeorema Communications's ROC (Joel Greenblatt) % falls into.


LSE:AEO
58GF Score
Aeorema Communications PLC LSE:AEO
ROC (Joel Greenblatt) % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Aeorema Communications 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:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

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.

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(6.347 + 0 + -8.8817841970013E-16) - (5.073 + 0 + 0.034999999999999)
=1.239

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(6.288 + 0 + 0.081) - (7.36 + 0 + 0.034999999999999)
=-1.026

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Aeorema Communications for the quarter that ended in Jun. 2025 can be restated as:

ROC (Joel Greenblatt) %(Q: Jun. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2024  Q: Jun. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=0.998/( ( (0.868 + max(1.239, 0)) + (0.795 + max(-1.026, 0)) )/ 2 )
=0.998/( ( 2.107 + 0.795 )/ 2 )
=0.998/1.451
=68.78 %

Note: The EBIT data used here is two times the semi-annual (Jun. 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 68.78% mean?
Aeorema Communications (LSE:AEO) has a ROC (Joel Greenblatt) % of 68.78% as of Jun. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Aeorema Communications and its competitors. This is 80% below median its historical median of 345.77. According to the industry distribution chart, Aeorema Communications ranks #321 out of 1015 companies in the Media - Diversified industry, placing it in the top 31.6%.
Is Aeorema Communications' ROC (Joel Greenblatt) % too high?
Aeorema Communications' current ROC (Joel Greenblatt) % of 68.78% is 80% below median its 10-year median of 345.77. The Media - Diversified industry median ROC (Joel Greenblatt) % is 9.81. Aeorema Communications' value of 68.78% is 601.1% above this industry median. Based on the distribution chart, Aeorema Communications ranks #321 out of 1015 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Aeorema Communications has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aeorema Communications' ROC (Joel Greenblatt) % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Aeorema Communications ranks #321 out of 1015 companies for ROC (Joel Greenblatt) %. This puts Aeorema Communications in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 9.81. Aeorema Communications' value of 68.78% is 601.1% above this benchmark. While the company's 10-year median is 345.77 vs. the industry median of 9.81, Aeorema Communications 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 Media - Diversified company?
The median ROC (Joel Greenblatt) % among Media - Diversified companies is 9.81, based on 1,015 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. Aeorema Communications's current ROC (Joel Greenblatt) % of 68.78% is 601.1% 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 Aeorema Communications and its competitors. For the Media - Diversified industry, the median ROC (Joel Greenblatt) % is 9.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aeorema Communications's current ROC (Joel Greenblatt) % is 68.78%, which is 80% below median its own 10-year median of 345.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aeorema Communications stock overvalued right now?
Based on GuruFocus' analysis, Aeorema Communications (LSE:AEO) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.79, compared to a current price of £0.62 — trading 21.5% below its estimated fair value. The current ROC (Joel Greenblatt) % is 68.78%, which is 80% below median its 10-year median of 345.77 and 601.1% above the Media - Diversified industry median of 9.81. Aeorema Communications' overall GF Score™ is 58/100 with 9 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 Aeorema Communications (LSE:AEO), the current ROC (Joel Greenblatt) % is 68.78% as of Jun. 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 Aeorema Communications (LSE:AEO) Overvalued in 2026?

Based on GuruFocus' analysis, Aeorema Communications stock appears to be undervalued. The current stock price of £0.62 is trading 21.5% below its estimated GF Value™ of £0.79. GuruFocus considers Aeorema Communications to be Modestly Undervalued.

Key valuation signals for LSE:AEO:

  • ROC (Joel Greenblatt) %: 68.78% (80% below median its 10-year median of 345.77)
  • GF Value™: £0.79 vs. price of £0.62 (21.5% below fair value)
  • GF Score™: 58/100 with 9 warning signs
  • Industry Position: 601.1% above the Media - Diversified median (#321 of 1015)

No single metric tells the full story. See the LSE:AEO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Aeorema Communications Business Description

Address 87 New Cavendish Street, London, GBR, W1W 6XD
Aeorema Communications PLC is a live events company. The company specializes in devising and delivering corporate communication solutions. The company's customers are spread across the United Kingdom, the United States, and the rest of the world. The revenue generated by the company is derived from the provision of services like assisting clients with venue sourcing, event management, and incentive travel.
58GF Score

Get the complete analysis for LSE:AEO

ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£0.62
Price
£0.79
GF Value