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Cheng LoongTPE:1904 -0.93%71 ROC (Joel Greenblatt) % is 7.99% as of Dec. 2025, which is 18% above its 10-year median of 6.78. GuruFocus rates TPE:1904 with a GF Score™ of 71/100 and a GF Value™ of NT$25.95 (Modestly Undervalued). The stock has 11 warning signs investors should review. Among 285 Forest Products companies, Cheng Loong ranks worse than 54.04% 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. Cheng Loong's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 7.99%.
The historical rank and industry rank for Cheng Loong's ROC (Joel Greenblatt) % or its related term are showing as below:
TPE:1904'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.81 Med: 6.78 Max: 14.08
Current: 3.87
During the past 13 years, Cheng Loong's highest ROC (Joel Greenblatt) % was 14.08%. The lowest was 3.81%. And the median was 6.78%.
TPE:1904's ROC (Joel Greenblatt) % is ranked worse than 54.04% of 285
companies
in the Forest Products industry
Industry Median: 4.78
vs TPE:1904: 3.87
Cheng Loong's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -26.40% 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.
Cheng Loong ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Cheng Loong'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.
For the Paper & Paper Products subindustry, Cheng Loong'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.
Cheng Loong ROC (Joel Greenblatt) % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Cheng Loong's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Cheng Loong'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 (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 7.99% mean?
Cheng Loong (TPE:1904) has a ROC (Joel Greenblatt) % of 7.99% 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 Cheng Loong and its competitors. This is 18% above median its historical median of 6.78. Over the past decade, Cheng Loong's ROC (Joel Greenblatt) % has ranged from 3.81 to 14.08. According to the industry distribution chart, Cheng Loong ranks #154 out of 285 companies in the Forest Products industry, placing it in the top 54%.
Is Cheng Loong's ROC (Joel Greenblatt) % too high?
Cheng Loong's current ROC (Joel Greenblatt) % of 7.99% is 18% above median its 10-year median of 6.78. Over the past 10 years, this metric has ranged from a low of 3.81 to a high of 14.08. The Forest Products industry median ROC (Joel Greenblatt) % is 4.78. Cheng Loong's value of 7.99% is 67.2% above this industry median. Based on the distribution chart, Cheng Loong ranks #154 out of 285 companies in the Forest Products industry, which is below the industry midpoint. Overall, Cheng Loong has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cheng Loong's ROC (Joel Greenblatt) % compare to competitors?
According to the Forest Products industry distribution chart, Cheng Loong ranks #154 out of 285 companies for ROC (Joel Greenblatt) %. This places Cheng Loong in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 4.78. Cheng Loong's value of 7.99% is 67.2% above this benchmark. Historically, Cheng Loong's own ROC (Joel Greenblatt) % has ranged from 3.81 to 14.08 over the past decade. While the company's 10-year median is 6.78 vs. the industry median of 4.78, Cheng Loong 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 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. Cheng Loong's current ROC (Joel Greenblatt) % of 7.99% is 67.2% 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 Cheng Loong 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. Cheng Loong's current ROC (Joel Greenblatt) % is 7.99%, which is 18% above median its own 10-year median of 6.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cheng Loong stock overvalued right now?
Based on GuruFocus' analysis, Cheng Loong (TPE:1904) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$25.95, compared to a current price of NT$21.35 — trading 17.7% below its estimated fair value. The current ROC (Joel Greenblatt) % is 7.99%, which is 18% above median its 10-year median of 6.78 and 67.2% above the Forest Products industry median of 4.78. Cheng Loong's overall GF Score™ is 71/100 with 11 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 Cheng Loong (TPE:1904), the current ROC (Joel Greenblatt) % is 7.99% 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 Cheng Loong (TPE:1904) Overvalued in 2026?
Based on GuruFocus' analysis, Cheng Loong stock appears to be undervalued.
The current stock price of NT$21.35 is trading 17.7% below its estimated GF Value™ of NT$25.95.
GuruFocus considers Cheng Loong to be Modestly Undervalued.
Key valuation signals for TPE:1904:
ROC (Joel Greenblatt) %: 7.99% (18% above median its 10-year median of 6.78)
GF Value™: NT$25.95 vs. price of NT$21.35 (17.7% below fair value)
Industry Position: 67.2% above the Forest Products median (#154 of 285)
No single metric tells the full story. See the TPE:1904 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cheng Loong Corp manufactures and sells a variety of paper products. The company is engaged in the manufacturing and sale of paper products, materials for paper products, corrugated cartons, and related products. It is also engaged in building commercial and residential premises for rent and sale in partnership with construction companies. The company generates a majority of its revenue from the manufacturing and sale of industrial paper, corrugated containers, and related products. Its geographical segments are Taiwan, which generates key revenue, China, and Southeast Asia.
71GF Score
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ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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