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Hongfa Technology CoSHSE:600885 +0.50%94 ROC (Joel Greenblatt) % is 34.76% as of Jun. 2026, which is 19% above its 10-year median of 29.25. GuruFocus rates SHSE:600885 with a GF Score™ of 94/100 and a GF Value™ of ¥32.66 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 3,065 Industrial Products companies, Hongfa Technology Co ranks better than 76.54% 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. Hongfa Technology Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 34.76%.
The historical rank and industry rank for Hongfa Technology Co's ROC (Joel Greenblatt) % or its related term are showing as below:
SHSE:600885'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 26.47 Med: 29.25 Max: 33.64
Current: 28.74
During the past 13 years, Hongfa Technology Co's highest ROC (Joel Greenblatt) % was 33.64%. The lowest was 26.47%. And the median was 29.25%.
SHSE:600885's ROC (Joel Greenblatt) % is ranked better than 76.54% of 3065
companies
in the Industrial Products industry
Industry Median: 11.8
vs SHSE:600885: 28.74
Hongfa Technology Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 1.40% per year.
Hongfa Technology Co (SHSE:600885) 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.
Hongfa Technology Co ROC (Joel Greenblatt) % Related Terms
Hongfa Technology Co ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Hongfa Technology 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.
Hongfa Technology Co ROC (Joel Greenblatt) % Chart
SHSE:600885 vs VRT, BE: ROC (Joel Greenblatt) % Comparison
For the Electrical Equipment & Parts subindustry, Hongfa Technology 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.
Hongfa Technology Co ROC (Joel Greenblatt) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hongfa Technology Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Hongfa Technology Co's ROC (Joel Greenblatt) % falls into.
Hongfa Technology 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 (Jun. 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 34.76% mean?
Hongfa Technology Co (SHSE:600885) has a ROC (Joel Greenblatt) % of 34.76% as of Jun. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Hongfa Technology Co and its competitors. This is 19% above median its historical median of 29.25. Over the past decade, Hongfa Technology Co's ROC (Joel Greenblatt) % has ranged from 26.47 to 33.64. According to the industry distribution chart, Hongfa Technology Co ranks #719 out of 3065 companies in the Industrial Products industry, placing it in the top 23.5%.
Is Hongfa Technology Co's ROC (Joel Greenblatt) % too high?
Hongfa Technology Co's current ROC (Joel Greenblatt) % of 34.76% is 19% above median its 10-year median of 29.25. Over the past 10 years, this metric has ranged from a low of 26.47 to a high of 33.64. The Industrial Products industry median ROC (Joel Greenblatt) % is 11.80. Hongfa Technology Co's value of 34.76% is 194.6% above this industry median. Based on the distribution chart, Hongfa Technology Co ranks #719 out of 3065 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Hongfa Technology Co has a GF Score™ of 94/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hongfa Technology Co's ROC (Joel Greenblatt) % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hongfa Technology Co ranks #719 out of 3065 companies for ROC (Joel Greenblatt) %. This places Hongfa Technology Co in the top 24% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.80. Hongfa Technology Co's value of 34.76% is 194.6% above this benchmark. Historically, Hongfa Technology Co's own ROC (Joel Greenblatt) % has ranged from 26.47 to 33.64 over the past decade. While the company's 10-year median is 29.25 vs. the industry median of 11.80, Hongfa Technology Co 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 an Industrial Products company?
The median ROC (Joel Greenblatt) % among Industrial Products companies is 11.80, 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. Hongfa Technology Co's current ROC (Joel Greenblatt) % of 34.76% is 194.6% 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 Hongfa Technology Co and its competitors. For the Industrial Products industry, the median ROC (Joel Greenblatt) % is 11.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongfa Technology Co's current ROC (Joel Greenblatt) % is 34.76%, which is 19% above median its own 10-year median of 29.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongfa Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hongfa Technology Co (SHSE:600885) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥32.66, compared to a current price of ¥36.20 — trading 10.8% above its estimated fair value. The current ROC (Joel Greenblatt) % is 34.76%, which is 19% above median its 10-year median of 29.25 and 194.6% above the Industrial Products industry median of 11.80. Hongfa Technology Co's overall GF Score™ is 94/100 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 Hongfa Technology Co (SHSE:600885), the current ROC (Joel Greenblatt) % is 34.76% as of Jun. 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 Hongfa Technology Co (SHSE:600885) Overvalued in 2026?
Based on GuruFocus' analysis, Hongfa Technology Co stock appears to be overvalued.
The current stock price of ¥36.20 is trading 10.8% above its estimated GF Value™ of ¥32.66.
GuruFocus considers Hongfa Technology Co to be Modestly Overvalued.
Key valuation signals for SHSE:600885:
ROC (Joel Greenblatt) %: 34.76% (19% above median its 10-year median of 29.25)
GF Value™: ¥32.66 vs. price of ¥36.20 (10.8% above fair value)
Industry Position: 194.6% above the Industrial Products median (#719 of 3065)
No single metric tells the full story. See the SHSE:600885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongfa Technology Co Ltd is engaged in Research, manufacture and selling relays, low voltage electrical appliances, contactors, automation equipment and related electronic components and assemblies, electromechanical products, mechanical equipment.
94GF Score
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