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. Rocky Mountain Chocolate Factory's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was -98.16%.
The historical rank and industry rank for Rocky Mountain Chocolate Factory's ROC (Joel Greenblatt) % or its related term are showing as below:
RMCF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -50.95 Med: -7.42 Max: 65.58
Current: -28.52
During the past 13 years, Rocky Mountain Chocolate Factory's highest ROC (Joel Greenblatt) % was 65.58%. The lowest was -50.95%. And the median was -7.42%.
RMCF's ROC (Joel Greenblatt) % is ranked worse than 91.62% of 1970
companies
in the Consumer Packaged Goods industry
Industry Median: 11.985
vs RMCF: -28.52
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.
* 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.
RMCF vs CTGL, PURE, DQWS: ROC (Joel Greenblatt) % Comparison
For the Confectioners subindustry, Rocky Mountain Chocolate Factory'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.
Rocky Mountain Chocolate Factory ROC (Joel Greenblatt) % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Rocky Mountain Chocolate Factory's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Rocky Mountain Chocolate Factory'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 (Feb. 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 -98.16% mean?
Rocky Mountain Chocolate Factory (RMCF) has a ROC (Joel Greenblatt) % of -98.16% as of Feb. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Rocky Mountain Chocolate Factory and its competitors. According to the industry distribution chart, Rocky Mountain Chocolate Factory ranks #1805 out of 1970 companies in the Consumer Packaged Goods industry, placing it in the top 91.6%.
Is Rocky Mountain Chocolate Factory's ROC (Joel Greenblatt) % too high?
Rocky Mountain Chocolate Factory's current ROC (Joel Greenblatt) % is -98.16%. Based on the distribution chart, Rocky Mountain Chocolate Factory ranks #1805 out of 1970 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Rocky Mountain Chocolate Factory has a GF Score™ of 52/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Rocky Mountain Chocolate Factory's ROC (Joel Greenblatt) % compare to CTGL and PURE?
According to the Consumer Packaged Goods industry distribution chart, Rocky Mountain Chocolate Factory ranks #1805 out of 1970 companies for ROC (Joel Greenblatt) %. This places Rocky Mountain Chocolate Factory in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.99. 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 Consumer Packaged Goods company?
The median ROC (Joel Greenblatt) % among Consumer Packaged Goods companies is 11.99, based on 1,970 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 Rocky Mountain Chocolate Factory and its competitors. For the Consumer Packaged Goods industry, the median ROC (Joel Greenblatt) % is 11.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rocky Mountain Chocolate Factory's current ROC (Joel Greenblatt) % is -98.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rocky Mountain Chocolate Factory stock overvalued right now?
Based on GuruFocus' analysis, Rocky Mountain Chocolate Factory (RMCF) is currently considered Possible Value Trap. The stock's GF Value™ is $1.91, compared to a current price of $1.11 — trading 41.9% below its estimated fair value. The current ROC (Joel Greenblatt) % is -98.16%. Rocky Mountain Chocolate Factory's overall GF Score™ is 52/100 with 9 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 Rocky Mountain Chocolate Factory (RMCF), the current ROC (Joel Greenblatt) % is -98.16% as of Feb. 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 Rocky Mountain Chocolate Factory (RMCF) Overvalued in 2026?
Based on GuruFocus' analysis, Rocky Mountain Chocolate Factory stock appears to be undervalued.
The current stock price of $1.11 is trading 41.9% below its estimated GF Value™ of $1.91.
GuruFocus considers Rocky Mountain Chocolate Factory to be Possible Value Trap.
Key valuation signals for RMCF:
ROC (Joel Greenblatt) %: -98.16%
GF Value™: $1.91 vs. price of $1.11 (41.9% below fair value)
No single metric tells the full story. See the RMCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rocky Mountain Chocolate Factory Business Description
Rocky Mountain Chocolate Factory Inc operates as a manufacturer of chocolate candies and confectionery products. The company prepares numerous products, including caramel apples in the store. The business activity of the firm functions through Franchising, Manufacturing, Retail Stores, and Others. The company derives maximum revenue through manufacturing activities. The products of the company include varieties of Clusters, Caramels, Creams, Toffees, Mints, and Truffles.
52GF Score
Get the complete analysis for RMCF
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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