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New Japan Chemical CoTSE:4406 -0.39%54 ROC (Joel Greenblatt) % is 6.98% as of Mar. 2026, which is 59% above its 10-year median of 4.39. GuruFocus rates TSE:4406 with a GF Score™ of 54/100 and a GF Value™ of 円200.58 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,609 Chemicals companies, New Japan Chemical Co ranks worse than 53.82% 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. New Japan Chemical Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 6.98%.
The historical rank and industry rank for New Japan Chemical Co's ROC (Joel Greenblatt) % or its related term are showing as below:
TSE:4406'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -2.86 Med: 4.39 Max: 9.49
Current: 9.49
During the past 13 years, New Japan Chemical Co's highest ROC (Joel Greenblatt) % was 9.49%. The lowest was -2.86%. And the median was 4.39%.
TSE:4406's ROC (Joel Greenblatt) % is ranked worse than 53.82% of 1609
companies
in the Chemicals industry
Industry Median: 10.59
vs TSE:4406: 9.49
New Japan Chemical Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
New Japan Chemical Co (TSE:4406) 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.
New Japan Chemical Co ROC (Joel Greenblatt) % Related Terms
New Japan Chemical Co ROC (Joel Greenblatt) % Historical Data
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The historical data trend for New Japan Chemical 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.
New Japan Chemical Co ROC (Joel Greenblatt) % Chart
TSE:4406 vs LIN, SHW, ECL: ROC (Joel Greenblatt) % Comparison
For the Specialty Chemicals subindustry, New Japan Chemical 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.
New Japan Chemical Co ROC (Joel Greenblatt) % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, New Japan Chemical Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where New Japan Chemical Co's ROC (Joel Greenblatt) % falls into.
New Japan Chemical 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 four times the quarterly (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 6.98% mean?
New Japan Chemical Co (TSE:4406) has a ROC (Joel Greenblatt) % of 6.98% 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 New Japan Chemical Co and its competitors. This is 59% above median its historical median of 4.39. According to the industry distribution chart, New Japan Chemical Co ranks #866 out of 1609 companies in the Chemicals industry, placing it in the top 53.8%.
Is New Japan Chemical Co's ROC (Joel Greenblatt) % too high?
New Japan Chemical Co's current ROC (Joel Greenblatt) % of 6.98% is 59% above median its 10-year median of 4.39. The Chemicals industry median ROC (Joel Greenblatt) % is 10.59. New Japan Chemical Co's value of 6.98% is 34.1% below this industry median. Based on the distribution chart, New Japan Chemical Co ranks #866 out of 1609 companies in the Chemicals industry, which is below the industry midpoint. Overall, New Japan Chemical Co has a GF Score™ of 54/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does New Japan Chemical Co's ROC (Joel Greenblatt) % compare to LIN and SHW?
According to the Chemicals industry distribution chart, New Japan Chemical Co ranks #866 out of 1609 companies for ROC (Joel Greenblatt) %. This places New Japan Chemical Co in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 10.59. New Japan Chemical Co's value of 6.98% is 34.1% below this benchmark. While the company's 10-year median is 4.39 vs. the industry median of 10.59, New Japan Chemical Co has consistently been below 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 10.59, based on 1,609 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. New Japan Chemical Co's current ROC (Joel Greenblatt) % of 6.98% is 34.1% below 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 New Japan Chemical Co and its competitors. For the Chemicals industry, the median ROC (Joel Greenblatt) % is 10.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Japan Chemical Co's current ROC (Joel Greenblatt) % is 6.98%, which is 59% above median its own 10-year median of 4.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Japan Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, New Japan Chemical Co (TSE:4406) is currently considered Modestly Overvalued. The stock's GF Value™ is 円200.58, compared to a current price of 円253.00 — trading 26.1% above its estimated fair value. The current ROC (Joel Greenblatt) % is 6.98%, which is 59% above median its 10-year median of 4.39 and 34.1% below the Chemicals industry median of 10.59. New Japan Chemical Co's overall GF Score™ is 54/100 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 New Japan Chemical Co (TSE:4406), the current ROC (Joel Greenblatt) % is 6.98% 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 New Japan Chemical Co (TSE:4406) Overvalued in 2026?
Based on GuruFocus' analysis, New Japan Chemical Co stock appears to be overvalued.
The current stock price of 円253.00 is trading 26.1% above its estimated GF Value™ of 円200.58.
GuruFocus considers New Japan Chemical Co to be Modestly Overvalued.
Key valuation signals for TSE:4406:
ROC (Joel Greenblatt) %: 6.98% (59% above median its 10-year median of 4.39)
GF Value™: 円200.58 vs. price of 円253.00 (26.1% above fair value)
Industry Position: 34.1% below the Chemicals median (#866 of 1609)
No single metric tells the full story. See the TSE:4406 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Japan Chemical Co Ltd is a Japan-based company engages in the production and sale of oleo-chemical and chemical products. It offers fatty acids, glycerol, higher alcohols, unsaturated alcohols, surfactants, plasticizers, functional products, and resin additives.
54GF Score
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