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Sterling ToolsNSE:STERTOOLS +2.38%84 ROC (Joel Greenblatt) % is 7.28% as of Mar. 2026, which is 55% below its 10-year median of 16.11. GuruFocus rates NSE:STERTOOLS with a GF Score™ of 84/100 and a GF Value™ of ₹335.60 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 3,065 Industrial Products companies, Sterling Tools ranks worse than 50.57% 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. Sterling Tools's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 7.28%.
The historical rank and industry rank for Sterling Tools's ROC (Joel Greenblatt) % or its related term are showing as below:
NSE:STERTOOLS'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 9.55 Med: 16.11 Max: 35.03
Current: 11.34
During the past 13 years, Sterling Tools's highest ROC (Joel Greenblatt) % was 35.03%. The lowest was 9.55%. And the median was 16.11%.
NSE:STERTOOLS's ROC (Joel Greenblatt) % is ranked worse than 50.57% of 3065
companies
in the Industrial Products industry
Industry Median: 11.67
vs NSE:STERTOOLS: 11.34
Sterling Tools's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 7.50% 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.
Sterling Tools ROC (Joel Greenblatt) % Related Terms
Sterling Tools ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Sterling Tools'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.
NSE:STERTOOLS vs SNA, RBC, SWK: ROC (Joel Greenblatt) % Comparison
For the Tools & Accessories subindustry, Sterling Tools'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.
Sterling Tools ROC (Joel Greenblatt) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Sterling Tools's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Sterling Tools'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 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 7.28% mean?
Sterling Tools (NSE:STERTOOLS) has a ROC (Joel Greenblatt) % of 7.28% 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 Sterling Tools and its competitors. This is 55% below median its historical median of 16.11. Over the past decade, Sterling Tools' ROC (Joel Greenblatt) % has ranged from 9.55 to 35.03. According to the industry distribution chart, Sterling Tools ranks #1550 out of 3065 companies in the Industrial Products industry, placing it in the top 50.6%.
Is Sterling Tools' ROC (Joel Greenblatt) % too high?
Sterling Tools' current ROC (Joel Greenblatt) % of 7.28% is 55% below median its 10-year median of 16.11. Over the past 10 years, this metric has ranged from a low of 9.55 to a high of 35.03. The Industrial Products industry median ROC (Joel Greenblatt) % is 11.67. Sterling Tools' value of 7.28% is 37.6% below this industry median. Based on the distribution chart, Sterling Tools ranks #1550 out of 3065 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Sterling Tools has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sterling Tools' ROC (Joel Greenblatt) % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Sterling Tools ranks #1550 out of 3065 companies for ROC (Joel Greenblatt) %. This places Sterling Tools in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.67. Sterling Tools' value of 7.28% is 37.6% below this benchmark. Historically, Sterling Tools' own ROC (Joel Greenblatt) % has ranged from 9.55 to 35.03 over the past decade. While the company's 10-year median is 16.11 vs. the industry median of 11.67, Sterling Tools has consistently been below 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 an Industrial Products company?
The median ROC (Joel Greenblatt) % among Industrial Products companies is 11.67, based on 3,065 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. Sterling Tools's current ROC (Joel Greenblatt) % of 7.28% is 37.6% below 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 Sterling Tools and its competitors. For the Industrial Products industry, the median ROC (Joel Greenblatt) % is 11.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sterling Tools's current ROC (Joel Greenblatt) % is 7.28%, which is 55% below median its own 10-year median of 16.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sterling Tools stock overvalued right now?
Based on GuruFocus' analysis, Sterling Tools (NSE:STERTOOLS) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹335.60, compared to a current price of ₹252.11 — trading 24.9% below its estimated fair value. The current ROC (Joel Greenblatt) % is 7.28%, which is 55% below median its 10-year median of 16.11 and 37.6% below the Industrial Products industry median of 11.67. Sterling Tools' overall GF Score™ is 84/100 with 4 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 Sterling Tools (NSE:STERTOOLS), the current ROC (Joel Greenblatt) % is 7.28% 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 Sterling Tools (NSE:STERTOOLS) Overvalued in 2026?
Based on GuruFocus' analysis, Sterling Tools stock appears to be undervalued.
The current stock price of ₹252.11 is trading 24.9% below its estimated GF Value™ of ₹335.60.
GuruFocus considers Sterling Tools to be Modestly Undervalued.
Key valuation signals for NSE:STERTOOLS:
ROC (Joel Greenblatt) %: 7.28% (55% below median its 10-year median of 16.11)
GF Value™: ₹335.60 vs. price of ₹252.11 (24.9% below fair value)
Industry Position: 37.6% below the Industrial Products median (#1550 of 3065)
No single metric tells the full story. See the NSE:STERTOOLS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sterling Tools Ltd engages in the manufacture and trade of high tensile cold forged fasteners. The firm offers its products in various categories namely Standard Fasteners, Special Fasteners, Chassis Fasteners, and Engine Fasteners. Its products include bolts, nuts, screws, washers of iron and steel, and cold-forged high-tensile fasteners for automobiles, general engineering, consumer durables, railways, and the auto replacement industry. The company has Automotive components as the only operating segment Geographically, the majority of the revenue comes from India.
84GF Score
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