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Nippon Rietec CoTSE:1938 +2.75%74 ROC (Joel Greenblatt) % is 23.97% as of Mar. 2026, which is 59% above its 10-year median of 15.04. GuruFocus rates TSE:1938 with a GF Score™ of 74/100 and a GF Value™ of 円1,852.71 (Significantly Overvalued). Among 1,781 Construction companies, Nippon Rietec Co ranks worse than 54.74% 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. Nippon Rietec Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 23.97%.
The historical rank and industry rank for Nippon Rietec Co's ROC (Joel Greenblatt) % or its related term are showing as below:
TSE:1938'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 7.89 Med: 15.04 Max: 25.84
Current: 15.76
During the past 13 years, Nippon Rietec Co's highest ROC (Joel Greenblatt) % was 25.84%. The lowest was 7.89%. And the median was 15.04%.
TSE:1938's ROC (Joel Greenblatt) % is ranked worse than 54.74% of 1781
companies
in the Construction industry
Industry Median: 19.62
vs TSE:1938: 15.76
Nippon Rietec Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 9.10% per year.
Nippon Rietec Co (TSE:1938) 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.
Nippon Rietec Co ROC (Joel Greenblatt) % Related Terms
Nippon Rietec Co ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Nippon Rietec Co'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.
TSE:1938 vs PWR, FIX, EME: ROC (Joel Greenblatt) % Comparison
For the Engineering & Construction subindustry, Nippon Rietec 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.
Nippon Rietec Co ROC (Joel Greenblatt) % vs Construction Industry
For the Construction industry and Industrials sector, Nippon Rietec Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Nippon Rietec Co's ROC (Joel Greenblatt) % falls into.
Nippon Rietec 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 two times the semi-annual (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 23.97% mean?
Nippon Rietec Co (TSE:1938) has a ROC (Joel Greenblatt) % of 23.97% 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 Nippon Rietec Co and its competitors. This is 59% above median its historical median of 15.04. Over the past decade, Nippon Rietec Co's ROC (Joel Greenblatt) % has ranged from 7.89 to 25.84. According to the industry distribution chart, Nippon Rietec Co ranks #975 out of 1781 companies in the Construction industry, placing it in the top 54.7%.
Is Nippon Rietec Co's ROC (Joel Greenblatt) % too high?
Nippon Rietec Co's current ROC (Joel Greenblatt) % of 23.97% is 59% above median its 10-year median of 15.04. Over the past 10 years, this metric has ranged from a low of 7.89 to a high of 25.84. The Construction industry median ROC (Joel Greenblatt) % is 19.62. Nippon Rietec Co's value of 23.97% is 22.2% above this industry median. Based on the distribution chart, Nippon Rietec Co ranks #975 out of 1781 companies in the Construction industry, which is below the industry midpoint. Overall, Nippon Rietec Co has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Rietec Co's ROC (Joel Greenblatt) % compare to PWR and FIX?
According to the Construction industry distribution chart, Nippon Rietec Co ranks #975 out of 1781 companies for ROC (Joel Greenblatt) %. This places Nippon Rietec Co in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 19.62. Nippon Rietec Co's value of 23.97% is 22.2% above this benchmark. Historically, Nippon Rietec Co's own ROC (Joel Greenblatt) % has ranged from 7.89 to 25.84 over the past decade. While the company's 10-year median is 15.04 vs. the industry median of 19.62, Nippon Rietec 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 Construction company?
The median ROC (Joel Greenblatt) % among Construction companies is 19.62, based on 1,781 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. Nippon Rietec Co's current ROC (Joel Greenblatt) % of 23.97% is 22.2% 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 Nippon Rietec Co and its competitors. For the Construction industry, the median ROC (Joel Greenblatt) % is 19.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Rietec Co's current ROC (Joel Greenblatt) % is 23.97%, which is 59% above median its own 10-year median of 15.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Rietec Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Rietec Co (TSE:1938) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,852.71, compared to a current price of 円2,504.00 — trading 35.2% above its estimated fair value. The current ROC (Joel Greenblatt) % is 23.97%, which is 59% above median its 10-year median of 15.04 and 22.2% above the Construction industry median of 19.62. Nippon Rietec Co's overall GF Score™ is 74/100. 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 Nippon Rietec Co (TSE:1938), the current ROC (Joel Greenblatt) % is 23.97% 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 Nippon Rietec Co (TSE:1938) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Rietec Co stock appears to be overvalued.
The current stock price of 円2,504.00 is trading 35.2% above its estimated GF Value™ of 円1,852.71.
GuruFocus considers Nippon Rietec Co to be Significantly Overvalued.
Key valuation signals for TSE:1938:
ROC (Joel Greenblatt) %: 23.97% (59% above median its 10-year median of 15.04)
GF Value™: 円1,852.71 vs. price of 円2,504.00 (35.2% above fair value)
Industry Position: 22.2% above the Construction median (#975 of 1781)
No single metric tells the full story. See the TSE:1938 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Rietec Co Ltd manufactures and sales electrical equipment for various divisions. The company operates in four business divisions including Railway electrical equipment construction, Road equipment, Indoor and outdoor electrical equipment construction and Transmission line construction. Its product offering includes signal equipment, train line equipment, power generation equipment, electric power equipment, distribution line equipment, telecommunication equipment, road information control system, road signs, sound insulation walls, road lighting equipment, aircraft lighting equipment, disaster prevention equipment construction, sanitation equipment construction, machinery equipment facility construction, civil engineering work, and waterproofing construction.
74GF Score
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