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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. Max Petroleum's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2014 was 10.90%.
The historical rank and industry rank for Max Petroleum's ROC (Joel Greenblatt) % or its related term are showing as below:
LSE:MXP'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -817.26 Med: -48.65 Max: -6.92
Current: -66.89
During the past 9 years, Max Petroleum's highest ROC (Joel Greenblatt) % was -6.92%. The lowest was -817.26%. And the median was -48.65%.
LSE:MXP's ROC (Joel Greenblatt) % is not ranked
in the Oil & Gas industry.
Industry Median: 8.56
vs LSE:MXP: -66.89
Max Petroleum's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 24.70% per year.
Max Petroleum (LSE:MXP) 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.
Max Petroleum ROC (Joel Greenblatt) % Related Terms
Max Petroleum ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Max Petroleum'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.
Max Petroleum ROC (Joel Greenblatt) % Competitor Comparison
For the Oil & Gas E&P subindustry, Max Petroleum'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.
Max Petroleum ROC (Joel Greenblatt) % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Max Petroleum's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Max Petroleum'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 two times the semi-annual (Sep. 2014) 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 10.90% mean?
Max Petroleum (LSE:MXP) has a ROC (Joel Greenblatt) % of 10.90% as of Sep. 2014. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Max Petroleum and its competitors.
Is Max Petroleum's ROC (Joel Greenblatt) % too high?
Max Petroleum's current ROC (Joel Greenblatt) % is 10.90%. The Oil & Gas industry median ROC (Joel Greenblatt) % is 8.56. Max Petroleum's value of 10.90% is 27.3% above this industry median.
How does Max Petroleum's ROC (Joel Greenblatt) % compare to competitors?
Max Petroleum's ROC (Joel Greenblatt) % of 10.90% can be compared against companies in the Oil & Gas industry. The industry median ROC (Joel Greenblatt) % is 8.56. Max Petroleum's value of 10.90% is 27.3% above 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 an Oil & Gas company?
The median ROC (Joel Greenblatt) % among Oil & Gas companies is 8.56, based on 998 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. Max Petroleum's current ROC (Joel Greenblatt) % of 10.90% is 27.3% 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 Max Petroleum and its competitors. For the Oil & Gas industry, the median ROC (Joel Greenblatt) % is 8.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Max Petroleum's current ROC (Joel Greenblatt) % is 10.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Max Petroleum stock overvalued right now?
Max Petroleum (LSE:MXP) has a current ROC (Joel Greenblatt) % of 10.90%. The current ROC (Joel Greenblatt) % is 10.90% and 27.3% above the Oil & Gas industry median of 8.56. 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 Max Petroleum (LSE:MXP), the current ROC (Joel Greenblatt) % is 10.90% as of Sep. 2014. 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.
Max Petroleum Plc is an independent oil and gas exploration and production company. The company is engaged in the business of exploration, development, and production of oil and gas assets within the Republic of Kazakhstan. The group owns the exploration and production rights to the Blocks A&E License, which comprises two onshore blocks extending over 12,455 km2 in the Pre-Caspian Basin in Western Kazakhstan.
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