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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. Alaska Air Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -7.59%.
The historical rank and industry rank for Alaska Air Group's ROC (Joel Greenblatt) % or its related term are showing as below:
LTS:0HC3'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -21.61 Med: 8.08 Max: 25.72
Current: 2.43
During the past 13 years, Alaska Air Group's highest ROC (Joel Greenblatt) % was 25.72%. The lowest was -21.61%. And the median was 8.08%.
LTS:0HC3's ROC (Joel Greenblatt) % is ranked worse than 82.77% of 998
companies
in the Transportation industry
Industry Median: 11.76
vs LTS:0HC3: 2.43
Alaska Air Group's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Alaska Air Group (LTS:0HC3) 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.
Alaska Air Group ROC (Joel Greenblatt) % Related Terms
Alaska Air Group ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Alaska Air Group'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.
LTS:0HC3 vs CPA, SKYW, ALGT: ROC (Joel Greenblatt) % Comparison
For the Airlines subindustry, Alaska Air Group'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.
Alaska Air Group ROC (Joel Greenblatt) % vs Transportation Industry
For the Transportation industry and Industrials sector, Alaska Air Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Alaska Air Group's ROC (Joel Greenblatt) % falls into.
Alaska Air Group 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 -7.59% mean?
Alaska Air Group (LTS:0HC3) has a ROC (Joel Greenblatt) % of -7.59% 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 Alaska Air Group and its competitors. According to the industry distribution chart, Alaska Air Group ranks #826 out of 998 companies in the Transportation industry, placing it in the top 82.8%.
Is Alaska Air Group's ROC (Joel Greenblatt) % too high?
Alaska Air Group's current ROC (Joel Greenblatt) % is -7.59%. Based on the distribution chart, Alaska Air Group ranks #826 out of 998 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Alaska Air Group has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alaska Air Group's ROC (Joel Greenblatt) % compare to CPA and SKYW?
According to the Transportation industry distribution chart, Alaska Air Group ranks #826 out of 998 companies for ROC (Joel Greenblatt) %. This places Alaska Air Group in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.76. 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 Transportation company?
The median ROC (Joel Greenblatt) % among Transportation companies is 11.76, 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. 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 Alaska Air Group and its competitors. For the Transportation industry, the median ROC (Joel Greenblatt) % is 11.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alaska Air Group's current ROC (Joel Greenblatt) % is -7.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alaska Air Group stock overvalued right now?
Based on GuruFocus' analysis, Alaska Air Group (LTS:0HC3) is currently considered Modestly Undervalued. The stock's GF Value™ is $63.90, compared to a current price of $48.12 — trading 24.7% below its estimated fair value. The current ROC (Joel Greenblatt) % is -7.59%. Alaska Air Group's overall GF Score™ is 85/100 with 6 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 Alaska Air Group (LTS:0HC3), the current ROC (Joel Greenblatt) % is -7.59% 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 Alaska Air Group (LTS:0HC3) Overvalued in 2026?
Based on GuruFocus' analysis, Alaska Air Group stock appears to be undervalued.
The current stock price of $48.12 is trading 24.7% below its estimated GF Value™ of $63.90.
GuruFocus considers Alaska Air Group to be Modestly Undervalued.
Key valuation signals for LTS:0HC3:
ROC (Joel Greenblatt) %: -7.59%
GF Value™: $63.90 vs. price of $48.12 (24.7% below fair value)
No single metric tells the full story. See the LTS:0HC3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alaska Air Group Inc operates two airlines, Alaska and Horizon, in three operating segments. The Alaska Airlines segment includes scheduled air transportation on Alaska's Boeing and Airbus jet aircraft for passengers and cargo throughout the U.S., and in parts of Mexico and Costa Rica. The Regional segment includes Horizon's and other third-party carriers' scheduled air transportation for passengers across a shorter distance network within the U.S. and Canada under capacity purchase agreements. The Hawaiian Airlines segment includes scheduled air transportation on Hawaiian's Boeing and Airbus aircraft for passengers and cargo. It earns revenues from Passenger tickets, including ticket breakage and net of taxes and fees, Passenger ancillary, and Mileage Plan passenger revenue.
85GF Score
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ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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