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Encourage Technologies CoTSE:3682 -2.29%76 ROC (Joel Greenblatt) % is 369.55% as of Mar. 2026, which is 37% above its 10-year median of 269.56. GuruFocus rates TSE:3682 with a GF Score™ of 76/100 and a GF Value™ of 円643.42 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,819 Software companies, Encourage Technologies Co ranks better than 89.15% 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. Encourage Technologies Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 369.55%.
The historical rank and industry rank for Encourage Technologies Co's ROC (Joel Greenblatt) % or its related term are showing as below:
TSE:3682'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 117.58 Med: 269.56 Max: 1532.98
Current: 309.85
During the past 13 years, Encourage Technologies Co's highest ROC (Joel Greenblatt) % was 1532.98%. The lowest was 117.58%. And the median was 269.56%.
TSE:3682's ROC (Joel Greenblatt) % is ranked better than 89.15% of 2819
companies
in the Software industry
Industry Median: 19.59
vs TSE:3682: 309.85
Encourage Technologies Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 10.60% per year.
Encourage Technologies Co (TSE:3682) 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.
Encourage Technologies Co ROC (Joel Greenblatt) % Related Terms
Encourage Technologies Co ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Encourage Technologies 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.
Encourage Technologies Co ROC (Joel Greenblatt) % Chart
TSE:3682 vs IBM, ACN, FISV: ROC (Joel Greenblatt) % Comparison
For the Information Technology Services subindustry, Encourage Technologies 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.
Encourage Technologies Co ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Encourage Technologies Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Encourage Technologies Co's ROC (Joel Greenblatt) % falls into.
Encourage Technologies 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 369.55% mean?
Encourage Technologies Co (TSE:3682) has a ROC (Joel Greenblatt) % of 369.55% 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 Encourage Technologies Co and its competitors. This is 37% above median its historical median of 269.56. Over the past decade, Encourage Technologies Co's ROC (Joel Greenblatt) % has ranged from 117.58 to 1,532.98. According to the industry distribution chart, Encourage Technologies Co ranks #306 out of 2819 companies in the Software industry, placing it in the top 10.9%.
Is Encourage Technologies Co's ROC (Joel Greenblatt) % too high?
Encourage Technologies Co's current ROC (Joel Greenblatt) % of 369.55% is 37% above median its 10-year median of 269.56. Over the past 10 years, this metric has ranged from a low of 117.58 to a high of 1,532.98. The Software industry median ROC (Joel Greenblatt) % is 19.59. Encourage Technologies Co's value of 369.55% is 1786.4% above this industry median. Based on the distribution chart, Encourage Technologies Co ranks #306 out of 2819 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Encourage Technologies Co has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Encourage Technologies Co's ROC (Joel Greenblatt) % compare to IBM and ACN?
According to the Software industry distribution chart, Encourage Technologies Co ranks #306 out of 2819 companies for ROC (Joel Greenblatt) %. This places Encourage Technologies Co in the top 11% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 19.59. Encourage Technologies Co's value of 369.55% is 1786.4% above this benchmark. Historically, Encourage Technologies Co's own ROC (Joel Greenblatt) % has ranged from 117.58 to 1,532.98 over the past decade. While the company's 10-year median is 269.56 vs. the industry median of 19.59, Encourage Technologies 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 Software company?
The median ROC (Joel Greenblatt) % among Software companies is 19.59, based on 2,819 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. Encourage Technologies Co's current ROC (Joel Greenblatt) % of 369.55% is 1786.4% 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 Encourage Technologies Co and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 19.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encourage Technologies Co's current ROC (Joel Greenblatt) % is 369.55%, which is 37% above median its own 10-year median of 269.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Encourage Technologies Co stock overvalued right now?
Based on GuruFocus' analysis, Encourage Technologies Co (TSE:3682) is currently considered Fairly Valued. The stock's GF Value™ is 円643.42, compared to a current price of 円598.00 — trading 7.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 369.55%, which is 37% above median its 10-year median of 269.56 and 1786.4% above the Software industry median of 19.59. Encourage Technologies Co's overall GF Score™ is 76/100 with 4 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 Encourage Technologies Co (TSE:3682), the current ROC (Joel Greenblatt) % is 369.55% 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 Encourage Technologies Co (TSE:3682) Overvalued in 2026?
Based on GuruFocus' analysis, Encourage Technologies Co stock appears to be undervalued.
The current stock price of 円598.00 is trading 7.1% below its estimated GF Value™ of 円643.42.
GuruFocus considers Encourage Technologies Co to be Fairly Valued.
Key valuation signals for TSE:3682:
ROC (Joel Greenblatt) %: 369.55% (37% above median its 10-year median of 269.56)
GF Value™: 円643.42 vs. price of 円598.00 (7.1% below fair value)
Industry Position: 1786.4% above the Software median (#306 of 2819)
No single metric tells the full story. See the TSE:3682 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Encourage Technologies Co Ltd develops software that monitors and audits user activity in IT systems. The company also provides maintenance support after the installation of the software as well consulting services.
76GF Score
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