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Merko Ehitus ASSTU:MKS -0.56%70 ROC (Joel Greenblatt) % is 19.23% as of Jun. 2026, which is 17% below its 10-year median of 23.15. GuruFocus rates STU:MKS with a GF Score™ of 70/100 and a GF Value™ of €13.39 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,788 Construction companies, Merko Ehitus AS ranks worse than 50.84% 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. Merko Ehitus AS's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 19.23%.
The historical rank and industry rank for Merko Ehitus AS's ROC (Joel Greenblatt) % or its related term are showing as below:
STU:MKS'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 7.35 Med: 23.15 Max: 66.7
Current: 18.52
During the past 13 years, Merko Ehitus AS's highest ROC (Joel Greenblatt) % was 66.70%. The lowest was 7.35%. And the median was 23.15%.
STU:MKS's ROC (Joel Greenblatt) % is ranked worse than 50.84% of 1788
companies
in the Construction industry
Industry Median: 19.305
vs STU:MKS: 18.52
Merko Ehitus AS's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 14.70% per year.
Merko Ehitus AS (STU:MKS) 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.
Merko Ehitus AS ROC (Joel Greenblatt) % Related Terms
Merko Ehitus AS ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Merko Ehitus AS'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:MKS vs PWR, FIX, EME: ROC (Joel Greenblatt) % Comparison
For the Engineering & Construction subindustry, Merko Ehitus AS'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.
Merko Ehitus AS ROC (Joel Greenblatt) % vs Construction Industry
For the Construction industry and Industrials sector, Merko Ehitus AS's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Merko Ehitus AS's ROC (Joel Greenblatt) % falls into.
Merko Ehitus AS 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 19.23% mean?
Merko Ehitus AS (STU:MKS) has a ROC (Joel Greenblatt) % of 19.23% 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 Merko Ehitus AS and its competitors. This is 17% below median its historical median of 23.15. Over the past decade, Merko Ehitus AS's ROC (Joel Greenblatt) % has ranged from 7.35 to 66.70. According to the industry distribution chart, Merko Ehitus AS ranks #909 out of 1788 companies in the Construction industry, placing it in the top 50.8%.
Is Merko Ehitus AS's ROC (Joel Greenblatt) % too high?
Merko Ehitus AS's current ROC (Joel Greenblatt) % of 19.23% is 17% below median its 10-year median of 23.15. Over the past 10 years, this metric has ranged from a low of 7.35 to a high of 66.70. The Construction industry median ROC (Joel Greenblatt) % is 19.31. Merko Ehitus AS's value of 19.23% is 0.4% below this industry median. Based on the distribution chart, Merko Ehitus AS ranks #909 out of 1788 companies in the Construction industry, which is below the industry midpoint. Overall, Merko Ehitus AS has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Merko Ehitus AS's ROC (Joel Greenblatt) % compare to PWR and FIX?
According to the Construction industry distribution chart, Merko Ehitus AS ranks #909 out of 1788 companies for ROC (Joel Greenblatt) %. This places Merko Ehitus AS in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 19.31. Merko Ehitus AS's value of 19.23% is 0.4% below this benchmark. Historically, Merko Ehitus AS's own ROC (Joel Greenblatt) % has ranged from 7.35 to 66.70 over the past decade. While the company's 10-year median is 23.15 vs. the industry median of 19.31, Merko Ehitus AS 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 Construction company?
The median ROC (Joel Greenblatt) % among Construction companies is 19.31, based on 1,788 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. Merko Ehitus AS's current ROC (Joel Greenblatt) % of 19.23% is 0.4% 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 Merko Ehitus AS and its competitors. For the Construction industry, the median ROC (Joel Greenblatt) % is 19.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merko Ehitus AS's current ROC (Joel Greenblatt) % is 19.23%, which is 17% below median its own 10-year median of 23.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merko Ehitus AS stock overvalued right now?
Based on GuruFocus' analysis, Merko Ehitus AS (STU:MKS) is currently considered Significantly Overvalued. The stock's GF Value™ is €13.39, compared to a current price of €26.50 — trading 97.9% above its estimated fair value. The current ROC (Joel Greenblatt) % is 19.23%, which is 17% below median its 10-year median of 23.15 and 0.4% below the Construction industry median of 19.31. Merko Ehitus AS's overall GF Score™ is 70/100 with 9 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 Merko Ehitus AS (STU:MKS), the current ROC (Joel Greenblatt) % is 19.23% 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 Merko Ehitus AS (STU:MKS) Overvalued in 2026?
Based on GuruFocus' analysis, Merko Ehitus AS stock appears to be overvalued.
The current stock price of €26.50 is trading 97.9% above its estimated GF Value™ of €13.39.
GuruFocus considers Merko Ehitus AS to be Significantly Overvalued.
Key valuation signals for STU:MKS:
ROC (Joel Greenblatt) %: 19.23% (17% below median its 10-year median of 23.15)
GF Value™: €13.39 vs. price of €26.50 (97.9% above fair value)
Industry Position: 0.4% below the Construction median (#909 of 1788)
No single metric tells the full story. See the STU:MKS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merko Ehitus AS is a construction company. The company is engaged in the business of general contracting of construction and on providing complete solutions in professional construction and real estate development. The company operates under two reportable segments: construction service and real estate development. Construction service contributes to the majority of the revenue. The Construction service segment includes all projects of the home markets in general construction, civil engineering, electrical construction and concrete works services. The firm operates mainly in Estonia, Lithuania, Latvia, and Norway. Geographically, the company generates the majority of its revenue from Estonia.
70GF Score
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