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SafaricomNAI:SCOM +0.28%100 ROC (Joel Greenblatt) % is 54.60% as of Mar. 2026, which is 13% below its 10-year median of 62.40. GuruFocus rates NAI:SCOM with a GF Score™ of 100/100 and a GF Value™ of KES21.98 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 364 Telecommunication Services companies, Safaricom ranks better than 86.26% 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. Safaricom's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 54.60%.
The historical rank and industry rank for Safaricom's ROC (Joel Greenblatt) % or its related term are showing as below:
NAI:SCOM'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 34.58 Med: 62.4 Max: 77.96
Current: 49.79
During the past 13 years, Safaricom's highest ROC (Joel Greenblatt) % was 77.96%. The lowest was 34.58%. And the median was 62.40%.
NAI:SCOM's ROC (Joel Greenblatt) % is ranked better than 86.26% of 364
companies
in the Telecommunication Services industry
Industry Median: 14.97
vs NAI:SCOM: 49.79
Safaricom's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -9.40% per year.
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 historical data trend for Safaricom'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.
NAI:SCOM vs TMUS, VZ, T: ROC (Joel Greenblatt) % Comparison
For the Telecom Services subindustry, Safaricom'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.
Safaricom ROC (Joel Greenblatt) % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Safaricom's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Safaricom'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 (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 54.60% mean?
Safaricom (NAI:SCOM) has a ROC (Joel Greenblatt) % of 54.60% 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 Safaricom and its competitors. This is 13% below median its historical median of 62.40. Over the past decade, Safaricom's ROC (Joel Greenblatt) % has ranged from 34.58 to 77.96. According to the industry distribution chart, Safaricom ranks #50 out of 364 companies in the Telecommunication Services industry, placing it in the top 13.7%.
Is Safaricom's ROC (Joel Greenblatt) % too high?
Safaricom's current ROC (Joel Greenblatt) % of 54.60% is 13% below median its 10-year median of 62.40. Over the past 10 years, this metric has ranged from a low of 34.58 to a high of 77.96. The Telecommunication Services industry median ROC (Joel Greenblatt) % is 14.97. Safaricom's value of 54.60% is 264.7% above this industry median. Based on the distribution chart, Safaricom ranks #50 out of 364 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Safaricom has a GF Score™ of 100/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Safaricom's ROC (Joel Greenblatt) % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Safaricom ranks #50 out of 364 companies for ROC (Joel Greenblatt) %. This places Safaricom in the top 14% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 14.97. Safaricom's value of 54.60% is 264.7% above this benchmark. Historically, Safaricom's own ROC (Joel Greenblatt) % has ranged from 34.58 to 77.96 over the past decade. While the company's 10-year median is 62.40 vs. the industry median of 14.97, Safaricom 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 Telecommunication Services company?
The median ROC (Joel Greenblatt) % among Telecommunication Services companies is 14.97, based on 364 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. Safaricom's current ROC (Joel Greenblatt) % of 54.60% is 264.7% 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 Safaricom and its competitors. For the Telecommunication Services industry, the median ROC (Joel Greenblatt) % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Safaricom's current ROC (Joel Greenblatt) % is 54.60%, which is 13% below median its own 10-year median of 62.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Safaricom stock overvalued right now?
Based on GuruFocus' analysis, Safaricom (NAI:SCOM) is currently considered Significantly Overvalued. The stock's GF Value™ is KES21.98, compared to a current price of KES35.60 — trading 62% above its estimated fair value. The current ROC (Joel Greenblatt) % is 54.60%, which is 13% below median its 10-year median of 62.40 and 264.7% above the Telecommunication Services industry median of 14.97. Safaricom's overall GF Score™ is 100/100 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 Safaricom (NAI:SCOM), the current ROC (Joel Greenblatt) % is 54.60% 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 Safaricom (NAI:SCOM) Overvalued in 2026?
Based on GuruFocus' analysis, Safaricom stock appears to be overvalued.
The current stock price of KES35.60 is trading 62% above its estimated GF Value™ of KES21.98.
GuruFocus considers Safaricom to be Significantly Overvalued.
Key valuation signals for NAI:SCOM:
ROC (Joel Greenblatt) %: 54.60% (13% below median its 10-year median of 62.40)
GF Value™: KES21.98 vs. price of KES35.60 (62% above fair value)
Industry Position: 264.7% above the Telecommunication Services median (#50 of 364)
No single metric tells the full story. See the NAI:SCOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Safaricom PLC is a Kenya-based telecommunications company. The principal activities of the company are the provision of telecommunication services, providing a comprehensive range of integrated telecommunication services including voice and data both mobile and fixed, SMS, the internet, and m-pesa. The company also offers a wide range of devices such as Mobile handsets, mobile broadband modems, routers, tablets, and notebooks. The majority of its revenue comes from service revenues: Voice, m-pesa, mobile data, messaging, fixed data and other service revenue. The company serves both individual and corporate/enterprise customers.
100GF Score
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