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China Meheco Group CoSHSE:600056 -2.54%63 ROC (Joel Greenblatt) % is 14.28% as of Mar. 2026, which is 41% below its 10-year median of 24.21. GuruFocus rates SHSE:600056 with a GF Score™ of 63/100 and a GF Value™ of ¥10.47 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 120 Medical Distribution companies, China Meheco Group Co ranks worse than 59.17% 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. China Meheco Group Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 14.28%.
The historical rank and industry rank for China Meheco Group Co's ROC (Joel Greenblatt) % or its related term are showing as below:
SHSE:600056'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 11.29 Med: 24.21 Max: 45.47
Current: 11.29
During the past 13 years, China Meheco Group Co's highest ROC (Joel Greenblatt) % was 45.47%. The lowest was 11.29%. And the median was 24.21%.
SHSE:600056's ROC (Joel Greenblatt) % is ranked worse than 59.17% of 120
companies
in the Medical Distribution industry
Industry Median: 15.045
vs SHSE:600056: 11.29
China Meheco Group Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -11.30% per year.
China Meheco Group Co (SHSE:600056) 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.
China Meheco Group Co ROC (Joel Greenblatt) % Related Terms
China Meheco Group Co ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for China Meheco Group Co'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.
China Meheco Group Co ROC (Joel Greenblatt) % Chart
SHSE:600056 vs MCK, CAH, COR: ROC (Joel Greenblatt) % Comparison
For the Medical Distribution subindustry, China Meheco Group Co'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.
China Meheco Group Co ROC (Joel Greenblatt) % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, China Meheco Group Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where China Meheco Group Co's ROC (Joel Greenblatt) % falls into.
China Meheco Group Co 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 14.28% mean?
China Meheco Group Co (SHSE:600056) has a ROC (Joel Greenblatt) % of 14.28% 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 China Meheco Group Co and its competitors. This is 41% below median its historical median of 24.21. Over the past decade, China Meheco Group Co's ROC (Joel Greenblatt) % has ranged from 11.29 to 45.47. According to the industry distribution chart, China Meheco Group Co ranks #71 out of 120 companies in the Medical Distribution industry, placing it in the top 59.2%.
Is China Meheco Group Co's ROC (Joel Greenblatt) % too high?
China Meheco Group Co's current ROC (Joel Greenblatt) % of 14.28% is 41% below median its 10-year median of 24.21. Over the past 10 years, this metric has ranged from a low of 11.29 to a high of 45.47. The Medical Distribution industry median ROC (Joel Greenblatt) % is 15.05. China Meheco Group Co's value of 14.28% is 5.1% below this industry median. Based on the distribution chart, China Meheco Group Co ranks #71 out of 120 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, China Meheco Group Co has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Meheco Group Co's ROC (Joel Greenblatt) % compare to MCK and CAH?
According to the Medical Distribution industry distribution chart, China Meheco Group Co ranks #71 out of 120 companies for ROC (Joel Greenblatt) %. This places China Meheco Group Co in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 15.05. China Meheco Group Co's value of 14.28% is 5.1% below this benchmark. Historically, China Meheco Group Co's own ROC (Joel Greenblatt) % has ranged from 11.29 to 45.47 over the past decade. While the company's 10-year median is 24.21 vs. the industry median of 15.05, China Meheco Group Co 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 a Medical Distribution company?
The median ROC (Joel Greenblatt) % among Medical Distribution companies is 15.05, based on 120 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. China Meheco Group Co's current ROC (Joel Greenblatt) % of 14.28% is 5.1% 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 China Meheco Group Co and its competitors. For the Medical Distribution industry, the median ROC (Joel Greenblatt) % is 15.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Meheco Group Co's current ROC (Joel Greenblatt) % is 14.28%, which is 41% below median its own 10-year median of 24.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Meheco Group Co stock overvalued right now?
Based on GuruFocus' analysis, China Meheco Group Co (SHSE:600056) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥10.47, compared to a current price of ¥9.20 — trading 12.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 14.28%, which is 41% below median its 10-year median of 24.21 and 5.1% below the Medical Distribution industry median of 15.05. China Meheco Group Co's overall GF Score™ is 63/100 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 China Meheco Group Co (SHSE:600056), the current ROC (Joel Greenblatt) % is 14.28% 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 China Meheco Group Co (SHSE:600056) Overvalued in 2026?
Based on GuruFocus' analysis, China Meheco Group Co stock appears to be undervalued.
The current stock price of ¥9.20 is trading 12.1% below its estimated GF Value™ of ¥10.47.
GuruFocus considers China Meheco Group Co to be Modestly Undervalued.
Key valuation signals for SHSE:600056:
ROC (Joel Greenblatt) %: 14.28% (41% below median its 10-year median of 24.21)
GF Value™: ¥10.47 vs. price of ¥9.20 (12.1% below fair value)
Industry Position: 5.1% below the Medical Distribution median (#71 of 120)
No single metric tells the full story. See the SHSE:600056 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Meheco Group Co Ltd is engaged in the distribution and trading of botanical medicines, medical instruments, and pharmaceuticals. It offers botanic medicines and herbal products, as well as exports of natural medicines, including herbs, spices, plant extracts, bee products, and Chinese traditional medicines. The company's business scope covers the whole industry chain, from research and development, cultivation and processing, manufacturing, distribution, and logistics to international trading, academic promotion, and technical service. The corporation provides trading services for customers in the pharmaceutical and chemical field, covering APIs, preparations, biologicals, blood products, and others.
63GF Score
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