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Luckin CoffeeSTU:LC0A +5.33%73 ROC (Joel Greenblatt) % is 55.60% as of Jun. 2026, which is 110% above its 10-year median of 26.46. GuruFocus rates STU:LC0A with a GF Score™ of 73/100 and a GF Value™ of €43.94 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 363 Restaurants companies, Luckin Coffee ranks better than 85.4% 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. Luckin Coffee's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 55.60%.
The historical rank and industry rank for Luckin Coffee's ROC (Joel Greenblatt) % or its related term are showing as below:
STU:LC0A'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -316.86 Med: 26.46 Max: 44.97
Current: 39.14
During the past 9 years, Luckin Coffee's highest ROC (Joel Greenblatt) % was 44.97%. The lowest was -316.86%. And the median was 26.46%.
STU:LC0A's ROC (Joel Greenblatt) % is ranked better than 85.4% of 363
companies
in the Restaurants industry
Industry Median: 8.67
vs STU:LC0A: 39.14
Luckin Coffee's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
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.
Luckin Coffee ROC (Joel Greenblatt) % Related Terms
Luckin Coffee ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Luckin Coffee'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.
STU:LC0A vs BROS, EAT, DPZ: ROC (Joel Greenblatt) % Comparison
For the Restaurants subindustry, Luckin Coffee'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.
Luckin Coffee ROC (Joel Greenblatt) % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Luckin Coffee's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Luckin Coffee's ROC (Joel Greenblatt) % falls into.
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 55.60% mean?
Luckin Coffee (STU:LC0A) has a ROC (Joel Greenblatt) % of 55.60% 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 Luckin Coffee and its competitors. This is 110% above median its historical median of 26.46. According to the industry distribution chart, Luckin Coffee ranks #53 out of 363 companies in the Restaurants industry, placing it in the top 14.6%.
Is Luckin Coffee's ROC (Joel Greenblatt) % too high?
Luckin Coffee's current ROC (Joel Greenblatt) % of 55.60% is 110% above median its 10-year median of 26.46. The Restaurants industry median ROC (Joel Greenblatt) % is 8.67. Luckin Coffee's value of 55.60% is 541.3% above this industry median. Based on the distribution chart, Luckin Coffee ranks #53 out of 363 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Luckin Coffee has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Luckin Coffee's ROC (Joel Greenblatt) % compare to BROS and EAT?
According to the Restaurants industry distribution chart, Luckin Coffee ranks #53 out of 363 companies for ROC (Joel Greenblatt) %. This places Luckin Coffee in the top 15% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 8.67. Luckin Coffee's value of 55.60% is 541.3% above this benchmark. While the company's 10-year median is 26.46 vs. the industry median of 8.67, Luckin Coffee 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 Restaurants company?
The median ROC (Joel Greenblatt) % among Restaurants companies is 8.67, based on 363 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. Luckin Coffee's current ROC (Joel Greenblatt) % of 55.60% is 541.3% 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 Luckin Coffee and its competitors. For the Restaurants industry, the median ROC (Joel Greenblatt) % is 8.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luckin Coffee's current ROC (Joel Greenblatt) % is 55.60%, which is 110% above median its own 10-year median of 26.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luckin Coffee stock overvalued right now?
Based on GuruFocus' analysis, Luckin Coffee (STU:LC0A) is currently considered Modestly Undervalued. The stock's GF Value™ is €43.94, compared to a current price of €31.60 — trading 28.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 55.60%, which is 110% above median its 10-year median of 26.46 and 541.3% above the Restaurants industry median of 8.67. Luckin Coffee's overall GF Score™ is 73/100 with 3 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 Luckin Coffee (STU:LC0A), the current ROC (Joel Greenblatt) % is 55.60% 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 Luckin Coffee (STU:LC0A) Overvalued in 2026?
Based on GuruFocus' analysis, Luckin Coffee stock appears to be undervalued.
The current stock price of €31.60 is trading 28.1% below its estimated GF Value™ of €43.94.
GuruFocus considers Luckin Coffee to be Modestly Undervalued.
Key valuation signals for STU:LC0A:
ROC (Joel Greenblatt) %: 55.60% (110% above median its 10-year median of 26.46)
GF Value™: €43.94 vs. price of €31.60 (28.1% below fair value)
Industry Position: 541.3% above the Restaurants median (#53 of 363)
No single metric tells the full story. See the STU:LC0A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luckin Coffee Inc operates a coffee network in China, providing retail services for freshly brewed drinks and pre-made food and beverage items. Its technology-driven model is built on mobile apps and a store network, offering a cashier-less purchase experience with features such as store selection, advance ordering, multiple payment options, and real-time order tracking. The company mainly operates self-operated pick-up stores in high-demand locations, enabling rapid and cost-efficient expansion, and also uses partnership and franchise models. It offers multiple products, including coffee, tea drinks, snacks, and light meals, with recipes tailored to local preferences, supported by sourcing and proprietary technology for operations and supply chain management.
73GF Score
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