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SYSTEMS DESIGN CoTSE:3766 +2.48%69 ROC (Joel Greenblatt) % is 115.16% as of Mar. 2026, which is 264% above its 10-year median of 31.63. GuruFocus rates TSE:3766 with a GF Score™ of 69/100 and a GF Value™ of 円1,045.08 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,820 Software companies, SYSTEMS DESIGN Co ranks better than 68.44% 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. SYSTEMS DESIGN Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 115.16%.
The historical rank and industry rank for SYSTEMS DESIGN Co's ROC (Joel Greenblatt) % or its related term are showing as below:
TSE:3766'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -31.43 Med: 31.63 Max: 77.87
Current: 77.87
During the past 13 years, SYSTEMS DESIGN Co's highest ROC (Joel Greenblatt) % was 77.87%. The lowest was -31.43%. And the median was 31.63%.
TSE:3766's ROC (Joel Greenblatt) % is ranked better than 68.44% of 2820
companies
in the Software industry
Industry Median: 19.52
vs TSE:3766: 77.87
SYSTEMS DESIGN Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 23.00% per year.
SYSTEMS DESIGN Co (TSE:3766) 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.
SYSTEMS DESIGN Co ROC (Joel Greenblatt) % Related Terms
SYSTEMS DESIGN Co ROC (Joel Greenblatt) % Historical Data
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The historical data trend for SYSTEMS DESIGN 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:3766 vs IBM, ACN, FISV: ROC (Joel Greenblatt) % Comparison
For the Information Technology Services subindustry, SYSTEMS DESIGN 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.
SYSTEMS DESIGN Co ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, SYSTEMS DESIGN Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where SYSTEMS DESIGN Co's ROC (Joel Greenblatt) % falls into.
SYSTEMS DESIGN 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 115.16% mean?
SYSTEMS DESIGN Co (TSE:3766) has a ROC (Joel Greenblatt) % of 115.16% 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 SYSTEMS DESIGN Co and its competitors. This is 264% above median its historical median of 31.63. According to the industry distribution chart, SYSTEMS DESIGN Co ranks #890 out of 2820 companies in the Software industry, placing it in the top 31.6%.
Is SYSTEMS DESIGN Co's ROC (Joel Greenblatt) % too high?
SYSTEMS DESIGN Co's current ROC (Joel Greenblatt) % of 115.16% is 264% above median its 10-year median of 31.63. The Software industry median ROC (Joel Greenblatt) % is 19.52. SYSTEMS DESIGN Co's value of 115.16% is 490% above this industry median. Based on the distribution chart, SYSTEMS DESIGN Co ranks #890 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, SYSTEMS DESIGN Co has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SYSTEMS DESIGN Co's ROC (Joel Greenblatt) % compare to IBM and ACN?
According to the Software industry distribution chart, SYSTEMS DESIGN Co ranks #890 out of 2820 companies for ROC (Joel Greenblatt) %. This puts SYSTEMS DESIGN Co in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 19.52. SYSTEMS DESIGN Co's value of 115.16% is 490% above this benchmark. While the company's 10-year median is 31.63 vs. the industry median of 19.52, SYSTEMS DESIGN 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 19.52, based on 2,820 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. SYSTEMS DESIGN Co's current ROC (Joel Greenblatt) % of 115.16% is 490% 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 SYSTEMS DESIGN Co and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 19.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SYSTEMS DESIGN Co's current ROC (Joel Greenblatt) % is 115.16%, which is 264% above median its own 10-year median of 31.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SYSTEMS DESIGN Co stock overvalued right now?
Based on GuruFocus' analysis, SYSTEMS DESIGN Co (TSE:3766) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,045.08, compared to a current price of 円1,403.00 — trading 34.2% above its estimated fair value. The current ROC (Joel Greenblatt) % is 115.16%, which is 264% above median its 10-year median of 31.63 and 490% above the Software industry median of 19.52. SYSTEMS DESIGN Co's overall GF Score™ is 69/100 with 3 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 SYSTEMS DESIGN Co (TSE:3766), the current ROC (Joel Greenblatt) % is 115.16% 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 SYSTEMS DESIGN Co (TSE:3766) Overvalued in 2026?
Based on GuruFocus' analysis, SYSTEMS DESIGN Co stock appears to be overvalued.
The current stock price of 円1,403.00 is trading 34.2% above its estimated GF Value™ of 円1,045.08.
GuruFocus considers SYSTEMS DESIGN Co to be Significantly Overvalued.
Key valuation signals for TSE:3766:
ROC (Joel Greenblatt) %: 115.16% (264% above median its 10-year median of 31.63)
GF Value™: 円1,045.08 vs. price of 円1,403.00 (34.2% above fair value)
Industry Position: 490% above the Software median (#890 of 2820)
No single metric tells the full story. See the TSE:3766 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SYSTEMS DESIGN Co Ltd is an information technology service provider in Japan. The business of the company includes system development, integration, outsourcing business, system operation, data solution, and product service. The services offered by the company include quality control system, accounting system, a repair service system, and a dealer management system.
69GF Score
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