PGS Software (LTS:0RK2) ROC (Joel Greenblatt) %: 230.27% (As of Sep. 2021) — Near Median

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What is PGS Software ROC (Joel Greenblatt) %?

PGS Software LTS:0RK2 4 ROC (Joel Greenblatt) % is 230.27% as of Sep. 2021, which is 8% above its 10-year median of 212.74. GuruFocus rates LTS:0RK2 with a GF Score™ of 4/100. The stock has 6 warning signs investors should review.

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. PGS Software's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2021 was 230.27%.

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

LTS:0RK2' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 125.17   Med: 212.74   Max: 287.27
Current: 204.7

During the past 13 years, PGS Software's highest ROC (Joel Greenblatt) % was 287.27%. The lowest was 125.17%. And the median was 212.74%.

LTS:0RK2's ROC (Joel Greenblatt) % is not ranked
in the Software industry.
Industry Median: 20.25 vs LTS:0RK2: 204.70

PGS Software's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -15.60% per year.


PGS Software  (LTS:0RK2) 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.


PGS Software ROC (Joel Greenblatt) % Related Terms


PGS Software ROC (Joel Greenblatt) % Historical Data

* Premium members only.

The historical data trend for PGS Software'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.

PGS Software ROC (Joel Greenblatt) % Chart

PGS Software Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 280.52 280.27 208.80 181.32 128.70

PGS Software Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 180.33 152.96 232.03 232.08 230.27

LTS:0RK2 vs CRM, INTU, NOW: ROC (Joel Greenblatt) % Comparison

For the Software - Application subindustry, PGS Software'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.


PGS Software ROC (Joel Greenblatt) % vs Software Industry

For the Software industry and Technology sector, PGS Software's ROC (Joel Greenblatt) % distribution charts can be found below:

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



PGS Software 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: Jun. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(24.651 + 0 + 6.255) - (11.862 + 0 + 23.217)
=-4.173

Working Capital(Q: Sep. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(33.102 + 0 + 6.551) - (11.964 + 0 + 12.969)
=14.72

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of PGS Software for the quarter that ended in Sep. 2021 can be restated as:

ROC (Joel Greenblatt) %(Q: Sep. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2021  Q: Sep. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=53.568/( ( (16.454 + max(-4.173, 0)) + (15.352 + max(14.72, 0)) )/ 2 )
=53.568/( ( 16.454 + 30.072 )/ 2 )
=53.568/23.263
=230.27 %

Note: The EBIT data used here is four times the quarterly (Sep. 2021) 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 230.27% mean?
PGS Software (LTS:0RK2) has a ROC (Joel Greenblatt) % of 230.27% as of Sep. 2021. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on PGS Software and its competitors. This is near median its historical median of 212.74. Over the past decade, PGS Software's ROC (Joel Greenblatt) % has ranged from 125.17 to 287.27.
Is PGS Software's ROC (Joel Greenblatt) % too high?
PGS Software's current ROC (Joel Greenblatt) % of 230.27% is near median its 10-year median of 212.74. Over the past 10 years, this metric has ranged from a low of 125.17 to a high of 287.27. The Software industry median ROC (Joel Greenblatt) % is 20.25. PGS Software's value of 230.27% is 1037.1% above this industry median. Overall, PGS Software has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does PGS Software's ROC (Joel Greenblatt) % compare to CRM and INTU?
PGS Software's ROC (Joel Greenblatt) % of 230.27% can be compared against companies in the Software industry. The industry median ROC (Joel Greenblatt) % is 20.25. PGS Software's value of 230.27% is 1037.1% above this benchmark. Historically, PGS Software's own ROC (Joel Greenblatt) % has ranged from 125.17 to 287.27 over the past decade. While the company's 10-year median is 212.74 vs. the industry median of 20.25, PGS Software 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 Software company?
The median ROC (Joel Greenblatt) % among Software companies is 20.25, based on 2,817 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. PGS Software's current ROC (Joel Greenblatt) % of 230.27% is 1037.1% 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 PGS Software and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 20.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PGS Software's current ROC (Joel Greenblatt) % is 230.27%, which is near median its own 10-year median of 212.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PGS Software stock overvalued right now?
PGS Software (LTS:0RK2) has a current ROC (Joel Greenblatt) % of 230.27%. The current ROC (Joel Greenblatt) % is 230.27%, which is near median its 10-year median of 212.74 and 1037.1% above the Software industry median of 20.25. PGS Software's overall GF Score™ is 4/100 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 PGS Software (LTS:0RK2), the current ROC (Joel Greenblatt) % is 230.27% as of Sep. 2021. 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.

PGS Software Business Description

Address ul. Klecinska 123, Wroclaw, POL, 54-413
PGS Software SA provides software development and IT outsourcing services in Poland. It offers nearshore software outsourcing; mobile and web; application development; continuous delivery, quality analysis, and automation; and cloud services.