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Simcere Pharmaceutical GroupSMHGF 94 ROC (Joel Greenblatt) % is 54.11% as of Dec. 2025, which is 25% above its 10-year median of 43.31. GuruFocus rates SMHGF with a GF Score™ of 94/100 and a GF Value™ of $1.26. Among 981 Drug Manufacturers companies, Simcere Pharmaceutical Group ranks better than 82.87% 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. Simcere Pharmaceutical Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 54.11%.
The historical rank and industry rank for Simcere Pharmaceutical Group's ROC (Joel Greenblatt) % or its related term are showing as below:
SMHGF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 23.41 Med: 43.31 Max: 74.12
Current: 46.03
During the past 9 years, Simcere Pharmaceutical Group's highest ROC (Joel Greenblatt) % was 74.12%. The lowest was 23.41%. And the median was 43.31%.
SMHGF's ROC (Joel Greenblatt) % is ranked better than 82.87% of 981
companies
in the Drug Manufacturers industry
Industry Median: 11.46
vs SMHGF: 46.03
Simcere Pharmaceutical Group (OTCPK:SMHGF) 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.
* 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.
Simcere Pharmaceutical Group ROC (Joel Greenblatt) % Chart
SMHGF vs ZTS, UTHR: ROC (Joel Greenblatt) % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Simcere Pharmaceutical Group'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.
Simcere Pharmaceutical Group ROC (Joel Greenblatt) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Simcere Pharmaceutical Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Simcere Pharmaceutical Group's ROC (Joel Greenblatt) % falls into.
Simcere Pharmaceutical Group 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 two times the semi-annual (Dec. 2025) 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 54.11% mean?
Simcere Pharmaceutical Group (SMHGF) has a ROC (Joel Greenblatt) % of 54.11% as of Dec. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Simcere Pharmaceutical Group and its competitors. This is 25% above median its historical median of 43.31. Over the past decade, Simcere Pharmaceutical Group's ROC (Joel Greenblatt) % has ranged from 23.41 to 74.12. According to the industry distribution chart, Simcere Pharmaceutical Group ranks #168 out of 981 companies in the Drug Manufacturers industry, placing it in the top 17.1%.
Is Simcere Pharmaceutical Group's ROC (Joel Greenblatt) % too high?
Simcere Pharmaceutical Group's current ROC (Joel Greenblatt) % of 54.11% is 25% above median its 10-year median of 43.31. Over the past 10 years, this metric has ranged from a low of 23.41 to a high of 74.12. The Drug Manufacturers industry median ROC (Joel Greenblatt) % is 11.46. Simcere Pharmaceutical Group's value of 54.11% is 372.2% above this industry median. Based on the distribution chart, Simcere Pharmaceutical Group ranks #168 out of 981 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Simcere Pharmaceutical Group has a GF Score™ of 94/100, reflecting its overall financial health beyond just this single metric.
How does Simcere Pharmaceutical Group's ROC (Joel Greenblatt) % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Simcere Pharmaceutical Group ranks #168 out of 981 companies for ROC (Joel Greenblatt) %. This places Simcere Pharmaceutical Group in the top 17% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.46. Simcere Pharmaceutical Group's value of 54.11% is 372.2% above this benchmark. Historically, Simcere Pharmaceutical Group's own ROC (Joel Greenblatt) % has ranged from 23.41 to 74.12 over the past decade. While the company's 10-year median is 43.31 vs. the industry median of 11.46, Simcere Pharmaceutical Group 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 a Drug Manufacturers company?
The median ROC (Joel Greenblatt) % among Drug Manufacturers companies is 11.46, 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. Simcere Pharmaceutical Group's current ROC (Joel Greenblatt) % of 54.11% is 372.2% 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 Simcere Pharmaceutical Group and its competitors. For the Drug Manufacturers industry, the median ROC (Joel Greenblatt) % is 11.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simcere Pharmaceutical Group's current ROC (Joel Greenblatt) % is 54.11%, which is 25% above median its own 10-year median of 43.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simcere Pharmaceutical Group stock overvalued right now?
Simcere Pharmaceutical Group (SMHGF) has a current ROC (Joel Greenblatt) % of 54.11%. The stock's GF Value™ is $1.26, compared to a current price of $1.49 — trading 18.2% above its estimated fair value. The current ROC (Joel Greenblatt) % is 54.11%, which is 25% above median its 10-year median of 43.31 and 372.2% above the Drug Manufacturers industry median of 11.46. Simcere Pharmaceutical Group's overall GF Score™ is 94/100. 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 Simcere Pharmaceutical Group (SMHGF), the current ROC (Joel Greenblatt) % is 54.11% as of Dec. 2025. 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 Simcere Pharmaceutical Group (SMHGF) Overvalued in 2026?
Based on GuruFocus' analysis, Simcere Pharmaceutical Group stock appears to be overvalued.
The current stock price of $1.49 is trading 18.2% above its estimated GF Value™ of $1.26.
Key valuation signals for SMHGF:
ROC (Joel Greenblatt) %: 54.11% (25% above median its 10-year median of 43.31)
GF Value™: $1.26 vs. price of $1.49 (18.2% above fair value)
Industry Position: 372.2% above the Drug Manufacturers median (#168 of 981)
No single metric tells the full story. See the SMHGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Simcere Pharmaceutical Group Ltd is engaged in the R&D, production, and commercialization of pharmaceuticals focused on generic pharmaceuticals. The company has a diversified product portfolio focused on therapeutic areas, including, neuroscience, anti-oncology, autoimmune, and antiinfection. The company's products include Endostar, Enweida, Enzeshu, Iremod, Quviviq, Cosela, Sanbexin and Others.
94GF Score
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