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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. Shandong Keyuan Pharmaceutical Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 16.62%.
The historical rank and industry rank for Shandong Keyuan Pharmaceutical Co's ROC (Joel Greenblatt) % or its related term are showing as below:
SZSE:301281'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.57 Med: 29.8 Max: 49.47
Current: 3.55
During the past 13 years, Shandong Keyuan Pharmaceutical Co's highest ROC (Joel Greenblatt) % was 49.47%. The lowest was 2.57%. And the median was 29.80%.
SZSE:301281's ROC (Joel Greenblatt) % is ranked worse than 62.73% of 982
companies
in the Drug Manufacturers industry
Industry Median: 11.405
vs SZSE:301281: 3.55
Shandong Keyuan Pharmaceutical Co (SZSE:301281) 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.
Shandong Keyuan Pharmaceutical Co ROC (Joel Greenblatt) % Chart
SZSE:301281 vs LLY, JNJ, ABBV: ROC (Joel Greenblatt) % Comparison
For the Drug Manufacturers - General subindustry, Shandong Keyuan Pharmaceutical 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.
Shandong Keyuan Pharmaceutical Co ROC (Joel Greenblatt) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Shandong Keyuan Pharmaceutical Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Shandong Keyuan Pharmaceutical Co's ROC (Joel Greenblatt) % falls into.
Shandong Keyuan Pharmaceutical 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 16.62% mean?
Shandong Keyuan Pharmaceutical Co (SZSE:301281) has a ROC (Joel Greenblatt) % of 16.62% 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 Shandong Keyuan Pharmaceutical Co and its competitors. This is 44% below median its historical median of 29.80. Over the past decade, Shandong Keyuan Pharmaceutical Co's ROC (Joel Greenblatt) % has ranged from 2.57 to 49.47. According to the industry distribution chart, Shandong Keyuan Pharmaceutical Co ranks #616 out of 982 companies in the Drug Manufacturers industry, placing it in the top 62.7%.
Is Shandong Keyuan Pharmaceutical Co's ROC (Joel Greenblatt) % too high?
Shandong Keyuan Pharmaceutical Co's current ROC (Joel Greenblatt) % of 16.62% is 44% below median its 10-year median of 29.80. Over the past 10 years, this metric has ranged from a low of 2.57 to a high of 49.47. The Drug Manufacturers industry median ROC (Joel Greenblatt) % is 11.41. Shandong Keyuan Pharmaceutical Co's value of 16.62% is 45.7% above this industry median. Based on the distribution chart, Shandong Keyuan Pharmaceutical Co ranks #616 out of 982 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Shandong Keyuan Pharmaceutical Co has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shandong Keyuan Pharmaceutical Co's ROC (Joel Greenblatt) % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Shandong Keyuan Pharmaceutical Co ranks #616 out of 982 companies for ROC (Joel Greenblatt) %. This places Shandong Keyuan Pharmaceutical Co in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.41. Shandong Keyuan Pharmaceutical Co's value of 16.62% is 45.7% above this benchmark. Historically, Shandong Keyuan Pharmaceutical Co's own ROC (Joel Greenblatt) % has ranged from 2.57 to 49.47 over the past decade. While the company's 10-year median is 29.80 vs. the industry median of 11.41, Shandong Keyuan Pharmaceutical 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 a Drug Manufacturers company?
The median ROC (Joel Greenblatt) % among Drug Manufacturers companies is 11.41, based on 982 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. Shandong Keyuan Pharmaceutical Co's current ROC (Joel Greenblatt) % of 16.62% is 45.7% 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 Shandong Keyuan Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median ROC (Joel Greenblatt) % is 11.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Keyuan Pharmaceutical Co's current ROC (Joel Greenblatt) % is 16.62%, which is 44% below median its own 10-year median of 29.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Keyuan Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Keyuan Pharmaceutical Co (SZSE:301281) is currently considered Fairly Valued. The stock's GF Value™ is ¥30.62, compared to a current price of ¥32.71 — trading 6.8% above its estimated fair value. The current ROC (Joel Greenblatt) % is 16.62%, which is 44% below median its 10-year median of 29.80 and 45.7% above the Drug Manufacturers industry median of 11.41. Shandong Keyuan Pharmaceutical Co's overall GF Score™ is 73/100 with 7 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 Shandong Keyuan Pharmaceutical Co (SZSE:301281), the current ROC (Joel Greenblatt) % is 16.62% 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 Shandong Keyuan Pharmaceutical Co (SZSE:301281) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Keyuan Pharmaceutical Co stock appears to be overvalued.
The current stock price of ¥32.71 is trading 6.8% above its estimated GF Value™ of ¥30.62.
GuruFocus considers Shandong Keyuan Pharmaceutical Co to be Fairly Valued.
Key valuation signals for SZSE:301281:
ROC (Joel Greenblatt) %: 16.62% (44% below median its 10-year median of 29.80)
GF Value™: ¥30.62 vs. price of ¥32.71 (6.8% above fair value)
Industry Position: 45.7% above the Drug Manufacturers median (#616 of 982)
No single metric tells the full story. See the SZSE:301281 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Keyuan Pharmaceutical Co Ltd is engaged in the research and development, production, and sales of chemical raw materials and their preparations.
73GF Score
Get the complete analysis for SZSE:301281
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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