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Zyxel GroupTPE:3704 +0.54%74 ROC (Joel Greenblatt) % is 10.46% as of Dec. 2025, which is 2% below its 10-year median of 10.65. GuruFocus rates TPE:3704 with a GF Score™ of 74/100 and a GF Value™ of NT$37.00 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 2,491 Hardware companies, Zyxel Group ranks worse than 50.18% 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. Zyxel Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 10.46%.
The historical rank and industry rank for Zyxel Group's ROC (Joel Greenblatt) % or its related term are showing as below:
TPE:3704'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -11.35 Med: 10.65 Max: 27.44
Current: 10.35
During the past 13 years, Zyxel Group's highest ROC (Joel Greenblatt) % was 27.44%. The lowest was -11.35%. And the median was 10.65%.
TPE:3704's ROC (Joel Greenblatt) % is ranked worse than 50.18% of 2491
companies
in the Hardware industry
Industry Median: 10.44
vs TPE:3704: 10.35
Zyxel Group's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -17.40% per year.
Zyxel Group (TPE:3704) 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.
Zyxel Group ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Zyxel Group'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.
TPE:3704 vs CSCO, CIEN, MSI: ROC (Joel Greenblatt) % Comparison
For the Communication Equipment subindustry, Zyxel 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.
Zyxel Group ROC (Joel Greenblatt) % vs Hardware Industry
For the Hardware industry and Technology sector, Zyxel Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Zyxel Group'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 10.46% mean?
Zyxel Group (TPE:3704) has a ROC (Joel Greenblatt) % of 10.46% 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 Zyxel Group and its competitors. This is near median its historical median of 10.65. According to the industry distribution chart, Zyxel Group ranks #1250 out of 2491 companies in the Hardware industry, placing it in the top 50.2%.
Is Zyxel Group's ROC (Joel Greenblatt) % too high?
Zyxel Group's current ROC (Joel Greenblatt) % of 10.46% is near median its 10-year median of 10.65. The Hardware industry median ROC (Joel Greenblatt) % is 10.44. Zyxel Group's value of 10.46% is 0.2% above this industry median. Based on the distribution chart, Zyxel Group ranks #1250 out of 2491 companies in the Hardware industry, which is below the industry midpoint. Overall, Zyxel Group has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zyxel Group's ROC (Joel Greenblatt) % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Zyxel Group ranks #1250 out of 2491 companies for ROC (Joel Greenblatt) %. This places Zyxel Group in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 10.44. Zyxel Group's value of 10.46% is 0.2% above this benchmark. While the company's 10-year median is 10.65 vs. the industry median of 10.44, Zyxel 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 Hardware company?
The median ROC (Joel Greenblatt) % among Hardware companies is 10.44, based on 2,491 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. Zyxel Group's current ROC (Joel Greenblatt) % of 10.46% is 0.2% 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 Zyxel Group and its competitors. For the Hardware industry, the median ROC (Joel Greenblatt) % is 10.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zyxel Group's current ROC (Joel Greenblatt) % is 10.46%, which is near median its own 10-year median of 10.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zyxel Group stock overvalued right now?
Based on GuruFocus' analysis, Zyxel Group (TPE:3704) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$37.00, compared to a current price of NT$46.80 — trading 26.5% above its estimated fair value. The current ROC (Joel Greenblatt) % is 10.46%, which is near median its 10-year median of 10.65 and 0.2% above the Hardware industry median of 10.44. Zyxel Group's overall GF Score™ is 74/100 with 5 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 Zyxel Group (TPE:3704), the current ROC (Joel Greenblatt) % is 10.46% 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 Zyxel Group (TPE:3704) Overvalued in 2026?
Based on GuruFocus' analysis, Zyxel Group stock appears to be overvalued.
The current stock price of NT$46.80 is trading 26.5% above its estimated GF Value™ of NT$37.00.
GuruFocus considers Zyxel Group to be Modestly Overvalued.
Key valuation signals for TPE:3704:
ROC (Joel Greenblatt) %: 10.46% (near median its 10-year median of 10.65)
GF Value™: NT$37.00 vs. price of NT$46.80 (26.5% above fair value)
Industry Position: 0.2% above the Hardware median (#1250 of 2491)
No single metric tells the full story. See the TPE:3704 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zyxel Group Corp is a Taiwan-based company that offers communications and networking products. It produces wifi systems, wireless extenders, home routers, cloud access cameras, switches, power and adapters, personal cloud storage, and security appliances and services. Geographically, it covers the United States, France, and other countries. It has four reportable segments: brand business segment, channel business segment, product business segment, and investment segment.
74GF Score
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