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SCATTSE:3974 +0.76%73 ROC (Joel Greenblatt) % is 23.13% as of Apr. 2026, which is 33% above its 10-year median of 17.38. GuruFocus rates TSE:3974 with a GF Score™ of 73/100 and a GF Value™ of 円471.31 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,818 Software companies, SCAT ranks better than 51.74% 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. SCAT's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 23.13%.
The historical rank and industry rank for SCAT's ROC (Joel Greenblatt) % or its related term are showing as below:
TSE:3974'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 10.14 Med: 17.38 Max: 28.19
Current: 23.76
During the past 12 years, SCAT's highest ROC (Joel Greenblatt) % was 28.19%. The lowest was 10.14%. And the median was 17.38%.
TSE:3974's ROC (Joel Greenblatt) % is ranked better than 51.74% of 2818
companies
in the Software industry
Industry Median: 20.03
vs TSE:3974: 23.76
SCAT's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 15.50% 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.
The historical data trend for SCAT'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:3974 vs IBM, ACN, FISV: ROC (Joel Greenblatt) % Comparison
For the Information Technology Services subindustry, SCAT'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.
SCAT ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, SCAT's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where SCAT'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 two times the semi-annual (Apr. 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 23.13% mean?
SCAT (TSE:3974) has a ROC (Joel Greenblatt) % of 23.13% as of Apr. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on SCAT and its competitors. This is 33% above median its historical median of 17.38. Over the past decade, SCAT's ROC (Joel Greenblatt) % has ranged from 10.14 to 28.19. According to the industry distribution chart, SCAT ranks #1360 out of 2818 companies in the Software industry, placing it in the top 48.3%.
Is SCAT's ROC (Joel Greenblatt) % too high?
SCAT's current ROC (Joel Greenblatt) % of 23.13% is 33% above median its 10-year median of 17.38. Over the past 10 years, this metric has ranged from a low of 10.14 to a high of 28.19. The Software industry median ROC (Joel Greenblatt) % is 20.03. SCAT's value of 23.13% is 15.5% above this industry median. Based on the distribution chart, SCAT ranks #1360 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, SCAT has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SCAT's ROC (Joel Greenblatt) % compare to IBM and ACN?
According to the Software industry distribution chart, SCAT ranks #1360 out of 2818 companies for ROC (Joel Greenblatt) %. This puts SCAT in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 20.03. SCAT's value of 23.13% is 15.5% above this benchmark. Historically, SCAT's own ROC (Joel Greenblatt) % has ranged from 10.14 to 28.19 over the past decade. While the company's 10-year median is 17.38 vs. the industry median of 20.03, SCAT 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 20.03, based on 2,818 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. SCAT's current ROC (Joel Greenblatt) % of 23.13% is 15.5% 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 SCAT and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 20.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SCAT's current ROC (Joel Greenblatt) % is 23.13%, which is 33% above median its own 10-year median of 17.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SCAT stock overvalued right now?
Based on GuruFocus' analysis, SCAT (TSE:3974) is currently considered Significantly Overvalued. The stock's GF Value™ is 円471.31, compared to a current price of 円667.00 — trading 41.5% above its estimated fair value. The current ROC (Joel Greenblatt) % is 23.13%, which is 33% above median its 10-year median of 17.38 and 15.5% above the Software industry median of 20.03. SCAT's overall GF Score™ is 73/100 with 6 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 SCAT (TSE:3974), the current ROC (Joel Greenblatt) % is 23.13% as of Apr. 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 SCAT (TSE:3974) Overvalued in 2026?
Based on GuruFocus' analysis, SCAT stock appears to be overvalued.
The current stock price of 円667.00 is trading 41.5% above its estimated GF Value™ of 円471.31.
GuruFocus considers SCAT to be Significantly Overvalued.
Key valuation signals for TSE:3974:
ROC (Joel Greenblatt) %: 23.13% (33% above median its 10-year median of 17.38)
GF Value™: 円471.31 vs. price of 円667.00 (41.5% above fair value)
Industry Position: 15.5% above the Software median (#1360 of 2818)
No single metric tells the full story. See the TSE:3974 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SCAT Inc provides IT services and solutions for beauty salons. It provides business service for SME. It is also involved in the planning and operation of pay nursing home with nursing care.
73GF Score
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