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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. Kawaguchi Chemical Industry Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 was 12.32%.
The historical rank and industry rank for Kawaguchi Chemical Industry Co's ROC (Joel Greenblatt) % or its related term are showing as below:
TSE:4361'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.09 Med: 6.88 Max: 10.86
Current: 10.86
During the past 13 years, Kawaguchi Chemical Industry Co's highest ROC (Joel Greenblatt) % was 10.86%. The lowest was 1.09%. And the median was 6.88%.
TSE:4361's ROC (Joel Greenblatt) % is ranked better than 54.52% of 1605
companies
in the Chemicals industry
Industry Median: 9.67
vs TSE:4361: 10.86
Kawaguchi Chemical Industry Co (TSE:4361) 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.
* 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.
Kawaguchi Chemical Industry Co ROC (Joel Greenblatt) % Chart
TSE:4361 vs LIN, SHW, ECL: ROC (Joel Greenblatt) % Comparison
For the Specialty Chemicals subindustry, Kawaguchi Chemical Industry 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.
Kawaguchi Chemical Industry Co ROC (Joel Greenblatt) % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Kawaguchi Chemical Industry Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Kawaguchi Chemical Industry Co's ROC (Joel Greenblatt) % falls into.
Kawaguchi Chemical Industry 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 (May. 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 12.32% mean?
Kawaguchi Chemical Industry Co (TSE:4361) has a ROC (Joel Greenblatt) % of 12.32% as of May. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Kawaguchi Chemical Industry Co and its competitors. This is 79% above median its historical median of 6.88. Over the past decade, Kawaguchi Chemical Industry Co's ROC (Joel Greenblatt) % has ranged from 1.09 to 10.86. According to the industry distribution chart, Kawaguchi Chemical Industry Co ranks #730 out of 1605 companies in the Chemicals industry, placing it in the top 45.5%.
Is Kawaguchi Chemical Industry Co's ROC (Joel Greenblatt) % too high?
Kawaguchi Chemical Industry Co's current ROC (Joel Greenblatt) % of 12.32% is 79% above median its 10-year median of 6.88. Over the past 10 years, this metric has ranged from a low of 1.09 to a high of 10.86. The Chemicals industry median ROC (Joel Greenblatt) % is 9.67. Kawaguchi Chemical Industry Co's value of 12.32% is 27.4% above this industry median. Based on the distribution chart, Kawaguchi Chemical Industry Co ranks #730 out of 1605 companies in the Chemicals industry, which is above the industry midpoint. Overall, Kawaguchi Chemical Industry 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 Kawaguchi Chemical Industry Co's ROC (Joel Greenblatt) % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Kawaguchi Chemical Industry Co ranks #730 out of 1605 companies for ROC (Joel Greenblatt) %. This puts Kawaguchi Chemical Industry Co in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 9.67. Kawaguchi Chemical Industry Co's value of 12.32% is 27.4% above this benchmark. Historically, Kawaguchi Chemical Industry Co's own ROC (Joel Greenblatt) % has ranged from 1.09 to 10.86 over the past decade. While the company's 10-year median is 6.88 vs. the industry median of 9.67, Kawaguchi Chemical Industry 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 Chemicals company?
The median ROC (Joel Greenblatt) % among Chemicals companies is 9.67, based on 1,605 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. Kawaguchi Chemical Industry Co's current ROC (Joel Greenblatt) % of 12.32% is 27.4% 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 Kawaguchi Chemical Industry Co and its competitors. For the Chemicals industry, the median ROC (Joel Greenblatt) % is 9.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kawaguchi Chemical Industry Co's current ROC (Joel Greenblatt) % is 12.32%, which is 79% above median its own 10-year median of 6.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawaguchi Chemical Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Kawaguchi Chemical Industry Co (TSE:4361) is currently considered Fairly Valued. The stock's GF Value™ is 円1,430.74, compared to a current price of 円1,501.00 — trading 4.9% above its estimated fair value. The current ROC (Joel Greenblatt) % is 12.32%, which is 79% above median its 10-year median of 6.88 and 27.4% above the Chemicals industry median of 9.67. Kawaguchi Chemical Industry Co's overall GF Score™ is 76/100 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 Kawaguchi Chemical Industry Co (TSE:4361), the current ROC (Joel Greenblatt) % is 12.32% as of May. 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 Kawaguchi Chemical Industry Co (TSE:4361) Overvalued in 2026?
Based on GuruFocus' analysis, Kawaguchi Chemical Industry Co stock appears to be overvalued.
The current stock price of 円1,501.00 is trading 4.9% above its estimated GF Value™ of 円1,430.74.
GuruFocus considers Kawaguchi Chemical Industry Co to be Fairly Valued.
Key valuation signals for TSE:4361:
ROC (Joel Greenblatt) %: 12.32% (79% above median its 10-year median of 6.88)
GF Value™: 円1,430.74 vs. price of 円1,501.00 (4.9% above fair value)
Industry Position: 27.4% above the Chemicals median (#730 of 1605)
No single metric tells the full story. See the TSE:4361 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kawaguchi Chemical Industry Co Ltd is the Japanese manufacturer of organic-rubber chemical products. The company's product offering includes organic rubber chemicals, resin chemicals, pharmaceutical intermediates, agricultural chemical intermediates, pigment intermediates, pharmaceutical agents for the environment, photographic chemicals and lubricant additives.
76GF Score
Get the complete analysis for TSE:4361
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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