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Muromachi ChemicalsTSE:4885 79 ROC (Joel Greenblatt) % is 27.25% as of Feb. 2026, which is 74% above its 10-year median of 15.64. GuruFocus rates TSE:4885 with a GF Score™ of 79/100 and a GF Value™ of 円985.48 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,605 Chemicals companies, Muromachi Chemicals ranks better than 63.3% 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. Muromachi Chemicals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 27.25%.
The historical rank and industry rank for Muromachi Chemicals's ROC (Joel Greenblatt) % or its related term are showing as below:
TSE:4885'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -0.86 Med: 15.64 Max: 21.64
Current: 14.35
During the past 8 years, Muromachi Chemicals's highest ROC (Joel Greenblatt) % was 21.64%. The lowest was -0.86%. And the median was 15.64%.
TSE:4885's ROC (Joel Greenblatt) % is ranked better than 63.3% of 1605
companies
in the Chemicals industry
Industry Median: 9.55
vs TSE:4885: 14.35
Muromachi Chemicals's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 6.10% 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.
Muromachi Chemicals ROC (Joel Greenblatt) % Related Terms
Muromachi Chemicals ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Muromachi Chemicals'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:4885 vs DOW: ROC (Joel Greenblatt) % Comparison
For the Chemicals subindustry, Muromachi Chemicals'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.
Muromachi Chemicals ROC (Joel Greenblatt) % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Muromachi Chemicals's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Muromachi Chemicals'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 four times the quarterly (Feb. 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 27.25% mean?
Muromachi Chemicals (TSE:4885) has a ROC (Joel Greenblatt) % of 27.25% as of Feb. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Muromachi Chemicals and its competitors. This is 74% above median its historical median of 15.64. According to the industry distribution chart, Muromachi Chemicals ranks #589 out of 1605 companies in the Chemicals industry, placing it in the top 36.7%.
Is Muromachi Chemicals' ROC (Joel Greenblatt) % too high?
Muromachi Chemicals' current ROC (Joel Greenblatt) % of 27.25% is 74% above median its 10-year median of 15.64. The Chemicals industry median ROC (Joel Greenblatt) % is 9.55. Muromachi Chemicals' value of 27.25% is 185.3% above this industry median. Based on the distribution chart, Muromachi Chemicals ranks #589 out of 1605 companies in the Chemicals industry, which is above the industry midpoint. Overall, Muromachi Chemicals has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Muromachi Chemicals' ROC (Joel Greenblatt) % compare to DOW?
According to the Chemicals industry distribution chart, Muromachi Chemicals ranks #589 out of 1605 companies for ROC (Joel Greenblatt) %. This puts Muromachi Chemicals in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 9.55. Muromachi Chemicals' value of 27.25% is 185.3% above this benchmark. While the company's 10-year median is 15.64 vs. the industry median of 9.55, Muromachi Chemicals 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 9.55, 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. Muromachi Chemicals's current ROC (Joel Greenblatt) % of 27.25% is 185.3% 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 Muromachi Chemicals and its competitors. For the Chemicals industry, the median ROC (Joel Greenblatt) % is 9.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muromachi Chemicals's current ROC (Joel Greenblatt) % is 27.25%, which is 74% above median its own 10-year median of 15.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muromachi Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Muromachi Chemicals (TSE:4885) is currently considered Fairly Valued. The stock's GF Value™ is 円985.48, compared to a current price of 円898.00 — trading 8.9% below its estimated fair value. The current ROC (Joel Greenblatt) % is 27.25%, which is 74% above median its 10-year median of 15.64 and 185.3% above the Chemicals industry median of 9.55. Muromachi Chemicals' overall GF Score™ is 79/100 with 2 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 Muromachi Chemicals (TSE:4885), the current ROC (Joel Greenblatt) % is 27.25% as of Feb. 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 Muromachi Chemicals (TSE:4885) Overvalued in 2026?
Based on GuruFocus' analysis, Muromachi Chemicals stock appears to be undervalued.
The current stock price of 円898.00 is trading 8.9% below its estimated GF Value™ of 円985.48.
GuruFocus considers Muromachi Chemicals to be Fairly Valued.
Key valuation signals for TSE:4885:
ROC (Joel Greenblatt) %: 27.25% (74% above median its 10-year median of 15.64)
GF Value™: 円985.48 vs. price of 円898.00 (8.9% below fair value)
Industry Position: 185.3% above the Chemicals median (#589 of 1605)
No single metric tells the full story. See the TSE:4885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muromachi Chemicals Inc is engaged in the production and distribution of pharmaceuticals, planning, production, and distribution of health foods, and distribution and processing of ion-exchange resin products. The Company has three reportable segments based on business type: Pharmaceuticals Business, Health Food Business, and Chemicals Business.
79GF Score
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