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Henan Taloph Pharmaceutical Stock CoSHSE:600222 +0.87%62 ROC (Joel Greenblatt) % is 7.18% as of Mar. 2026, which is 24% below its 10-year median of 9.39. GuruFocus rates SHSE:600222 with a GF Score™ of 62/100 and a GF Value™ of ¥4.90 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 981 Drug Manufacturers companies, Henan Taloph Pharmaceutical Stock Co ranks better than 53.92% 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. Henan Taloph Pharmaceutical Stock Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 7.18%.
The historical rank and industry rank for Henan Taloph Pharmaceutical Stock Co's ROC (Joel Greenblatt) % or its related term are showing as below:
SHSE:600222'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -4.92 Med: 9.39 Max: 15.63
Current: 13.06
During the past 13 years, Henan Taloph Pharmaceutical Stock Co's highest ROC (Joel Greenblatt) % was 15.63%. The lowest was -4.92%. And the median was 9.39%.
SHSE:600222's ROC (Joel Greenblatt) % is ranked better than 53.92% of 981
companies
in the Drug Manufacturers industry
Industry Median: 10.74
vs SHSE:600222: 13.06
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.
Henan Taloph Pharmaceutical Stock Co ROC (Joel Greenblatt) % Chart
SHSE:600222 vs ZTS: ROC (Joel Greenblatt) % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Henan Taloph Pharmaceutical Stock 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.
Henan Taloph Pharmaceutical Stock Co ROC (Joel Greenblatt) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Henan Taloph Pharmaceutical Stock Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Henan Taloph Pharmaceutical Stock Co's ROC (Joel Greenblatt) % falls into.
Henan Taloph Pharmaceutical Stock 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 7.18% mean?
Henan Taloph Pharmaceutical Stock Co (SHSE:600222) has a ROC (Joel Greenblatt) % of 7.18% 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 Henan Taloph Pharmaceutical Stock Co and its competitors. This is 24% below median its historical median of 9.39. According to the industry distribution chart, Henan Taloph Pharmaceutical Stock Co ranks #452 out of 981 companies in the Drug Manufacturers industry, placing it in the top 46.1%.
Is Henan Taloph Pharmaceutical Stock Co's ROC (Joel Greenblatt) % too high?
Henan Taloph Pharmaceutical Stock Co's current ROC (Joel Greenblatt) % of 7.18% is 24% below median its 10-year median of 9.39. The Drug Manufacturers industry median ROC (Joel Greenblatt) % is 10.74. Henan Taloph Pharmaceutical Stock Co's value of 7.18% is 33.1% below this industry median. Based on the distribution chart, Henan Taloph Pharmaceutical Stock Co ranks #452 out of 981 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Henan Taloph Pharmaceutical Stock Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Henan Taloph Pharmaceutical Stock Co's ROC (Joel Greenblatt) % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Henan Taloph Pharmaceutical Stock Co ranks #452 out of 981 companies for ROC (Joel Greenblatt) %. This puts Henan Taloph Pharmaceutical Stock Co in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 10.74. Henan Taloph Pharmaceutical Stock Co's value of 7.18% is 33.1% below this benchmark. While the company's 10-year median is 9.39 vs. the industry median of 10.74, Henan Taloph Pharmaceutical Stock 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 Drug Manufacturers company?
The median ROC (Joel Greenblatt) % among Drug Manufacturers companies is 10.74, based on 981 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. Henan Taloph Pharmaceutical Stock Co's current ROC (Joel Greenblatt) % of 7.18% is 33.1% 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 Henan Taloph Pharmaceutical Stock Co and its competitors. For the Drug Manufacturers industry, the median ROC (Joel Greenblatt) % is 10.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Henan Taloph Pharmaceutical Stock Co's current ROC (Joel Greenblatt) % is 7.18%, which is 24% below median its own 10-year median of 9.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Henan Taloph Pharmaceutical Stock Co stock overvalued right now?
Based on GuruFocus' analysis, Henan Taloph Pharmaceutical Stock Co (SHSE:600222) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥4.90, compared to a current price of ¥8.14 — trading 66.1% above its estimated fair value. The current ROC (Joel Greenblatt) % is 7.18%, which is 24% below median its 10-year median of 9.39 and 33.1% below the Drug Manufacturers industry median of 10.74. Henan Taloph Pharmaceutical Stock Co's overall GF Score™ is 62/100 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 Henan Taloph Pharmaceutical Stock Co (SHSE:600222), the current ROC (Joel Greenblatt) % is 7.18% 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 Henan Taloph Pharmaceutical Stock Co (SHSE:600222) Overvalued in 2026?
Based on GuruFocus' analysis, Henan Taloph Pharmaceutical Stock Co stock appears to be overvalued.
The current stock price of ¥8.14 is trading 66.1% above its estimated GF Value™ of ¥4.90.
GuruFocus considers Henan Taloph Pharmaceutical Stock Co to be Significantly Overvalued.
Key valuation signals for SHSE:600222:
ROC (Joel Greenblatt) %: 7.18% (24% below median its 10-year median of 9.39)
GF Value™: ¥4.90 vs. price of ¥8.14 (66.1% above fair value)
Industry Position: 33.1% below the Drug Manufacturers median (#452 of 981)
No single metric tells the full story. See the SHSE:600222 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Henan Taloph Pharmaceutical Stock Co Ltd is a Chinese company engaged in pharmaceutical manufacturing and pharmaceutical research and development services, including pharmaceutical preparations, Chinese herbal medicine slices, and pharmaceutical research and development services. The company's pharmaceutical preparation business is mainly based on oral Chinese medicine preparations, and its treatment areas cover the respiratory system, cardiovascular and cerebrovascular system, digestive system, and nervous system.
62GF Score
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