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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. Guangdong Songyang Recycle Resources Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 0.72%.
SHSE:603863'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -25.64 Med: 12.57 Max: 51.71
Current: -24.33
During the past 13 years, Guangdong Songyang Recycle Resources Co's highest ROC (Joel Greenblatt) % was 51.71%. The lowest was -25.64%. And the median was 12.57%.
SHSE:603863's ROC (Joel Greenblatt) % is ranked worse than 91.23% of 285
companies
in the Forest Products industry
Industry Median: 4.78
vs SHSE:603863: -24.33
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.
Guangdong Songyang Recycle Resources Co ROC (Joel Greenblatt) % Chart
Guangdong Songyang Recycle Resources Co Annual Data
For the Paper & Paper Products subindustry, Guangdong Songyang Recycle Resources 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.
Guangdong Songyang Recycle Resources Co ROC (Joel Greenblatt) % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Guangdong Songyang Recycle Resources Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Guangdong Songyang Recycle Resources Co's ROC (Joel Greenblatt) % falls into.
Guangdong Songyang Recycle Resources 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 0.72% mean?
Guangdong Songyang Recycle Resources Co (SHSE:603863) has a ROC (Joel Greenblatt) % of 0.72% 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 Guangdong Songyang Recycle Resources Co and its competitors. This is 94% below median its historical median of 12.57. According to the industry distribution chart, Guangdong Songyang Recycle Resources Co ranks #260 out of 285 companies in the Forest Products industry, placing it in the top 91.2%.
Is Guangdong Songyang Recycle Resources Co's ROC (Joel Greenblatt) % too high?
Guangdong Songyang Recycle Resources Co's current ROC (Joel Greenblatt) % of 0.72% is 94% below median its 10-year median of 12.57. The Forest Products industry median ROC (Joel Greenblatt) % is 4.78. Guangdong Songyang Recycle Resources Co's value of 0.72% is 84.9% below this industry median. Based on the distribution chart, Guangdong Songyang Recycle Resources Co ranks #260 out of 285 companies in the Forest Products industry, which is in the bottom quartile relative to peers. Overall, Guangdong Songyang Recycle Resources Co has a GF Score™ of 50/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Guangdong Songyang Recycle Resources Co's ROC (Joel Greenblatt) % compare to competitors?
According to the Forest Products industry distribution chart, Guangdong Songyang Recycle Resources Co ranks #260 out of 285 companies for ROC (Joel Greenblatt) %. This places Guangdong Songyang Recycle Resources Co in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 4.78. Guangdong Songyang Recycle Resources Co's value of 0.72% is 84.9% below this benchmark. While the company's 10-year median is 12.57 vs. the industry median of 4.78, Guangdong Songyang Recycle Resources 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 Forest Products company?
The median ROC (Joel Greenblatt) % among Forest Products companies is 4.78, based on 285 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. Guangdong Songyang Recycle Resources Co's current ROC (Joel Greenblatt) % of 0.72% is 84.9% 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 Guangdong Songyang Recycle Resources Co and its competitors. For the Forest Products industry, the median ROC (Joel Greenblatt) % is 4.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangdong Songyang Recycle Resources Co's current ROC (Joel Greenblatt) % is 0.72%, which is 94% below median its own 10-year median of 12.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangdong Songyang Recycle Resources Co stock overvalued right now?
Based on GuruFocus' analysis, Guangdong Songyang Recycle Resources Co (SHSE:603863) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥15.77, compared to a current price of ¥12.91 — trading 18.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 0.72%, which is 94% below median its 10-year median of 12.57 and 84.9% below the Forest Products industry median of 4.78. Guangdong Songyang Recycle Resources Co's overall GF Score™ is 50/100 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 Guangdong Songyang Recycle Resources Co (SHSE:603863), the current ROC (Joel Greenblatt) % is 0.72% 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 Guangdong Songyang Recycle Resources Co (SHSE:603863) Overvalued in 2026?
Based on GuruFocus' analysis, Guangdong Songyang Recycle Resources Co stock appears to be undervalued.
The current stock price of ¥12.91 is trading 18.1% below its estimated GF Value™ of ¥15.77.
GuruFocus considers Guangdong Songyang Recycle Resources Co to be Modestly Undervalued.
Key valuation signals for SHSE:603863:
ROC (Joel Greenblatt) %: 0.72% (94% below median its 10-year median of 12.57)
GF Value™: ¥15.77 vs. price of ¥12.91 (18.1% below fair value)
Industry Position: 84.9% below the Forest Products median (#260 of 285)
No single metric tells the full story. See the SHSE:603863 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guangdong Songyang Recycle Resources Co Ltd is a high-tech enterprise engaged in the research and development, production and sales of environmentally-friendly recycled paper.
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