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Showa Chemical Industry CoTSE:4990 +0.20%41 ROC (Joel Greenblatt) % is 8.41% as of Mar. 2026, which is 44% below its 10-year median of 15.07. GuruFocus rates TSE:4990 with a GF Score™ of 41/100. The stock has 3 warning signs investors should review. Among 1,609 Chemicals companies, Showa Chemical Industry Co ranks better than 69.36% 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. Showa Chemical Industry Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 8.41%.
The historical rank and industry rank for Showa Chemical Industry Co's ROC (Joel Greenblatt) % or its related term are showing as below:
TSE:4990'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 9.92 Med: 15.07 Max: 19.67
Current: 18.69
During the past 13 years, Showa Chemical Industry Co's highest ROC (Joel Greenblatt) % was 19.67%. The lowest was 9.92%. And the median was 15.07%.
TSE:4990's ROC (Joel Greenblatt) % is ranked better than 69.36% of 1609
companies
in the Chemicals industry
Industry Median: 10.56
vs TSE:4990: 18.69
Showa Chemical Industry Co (TSE:4990) 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.
Showa Chemical Industry Co ROC (Joel Greenblatt) % Chart
TSE:4990 vs LIN, SHW, ECL: ROC (Joel Greenblatt) % Comparison
For the Specialty Chemicals subindustry, Showa 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.
Showa Chemical Industry Co ROC (Joel Greenblatt) % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Showa Chemical Industry Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Showa Chemical Industry Co's ROC (Joel Greenblatt) % falls into.
Showa 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 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 8.41% mean?
Showa Chemical Industry Co (TSE:4990) has a ROC (Joel Greenblatt) % of 8.41% 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 Showa Chemical Industry Co and its competitors. This is 44% below median its historical median of 15.07. Over the past decade, Showa Chemical Industry Co's ROC (Joel Greenblatt) % has ranged from 9.92 to 19.67. According to the industry distribution chart, Showa Chemical Industry Co ranks #493 out of 1609 companies in the Chemicals industry, placing it in the top 30.6%.
Is Showa Chemical Industry Co's ROC (Joel Greenblatt) % too high?
Showa Chemical Industry Co's current ROC (Joel Greenblatt) % of 8.41% is 44% below median its 10-year median of 15.07. Over the past 10 years, this metric has ranged from a low of 9.92 to a high of 19.67. The Chemicals industry median ROC (Joel Greenblatt) % is 10.56. Showa Chemical Industry Co's value of 8.41% is 20.4% below this industry median. Based on the distribution chart, Showa Chemical Industry Co ranks #493 out of 1609 companies in the Chemicals industry, which is above the industry midpoint. Overall, Showa Chemical Industry Co has a GF Score™ of 41/100, reflecting its overall financial health beyond just this single metric.
How does Showa Chemical Industry Co's ROC (Joel Greenblatt) % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Showa Chemical Industry Co ranks #493 out of 1609 companies for ROC (Joel Greenblatt) %. This puts Showa Chemical Industry Co in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 10.56. Showa Chemical Industry Co's value of 8.41% is 20.4% below this benchmark. Historically, Showa Chemical Industry Co's own ROC (Joel Greenblatt) % has ranged from 9.92 to 19.67 over the past decade. While the company's 10-year median is 15.07 vs. the industry median of 10.56, Showa Chemical Industry 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 10.56, 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. Showa Chemical Industry Co's current ROC (Joel Greenblatt) % of 8.41% is 20.4% 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 Showa Chemical Industry Co and its competitors. For the Chemicals industry, the median ROC (Joel Greenblatt) % is 10.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Showa Chemical Industry Co's current ROC (Joel Greenblatt) % is 8.41%, which is 44% below median its own 10-year median of 15.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Showa Chemical Industry Co stock overvalued right now?
Showa Chemical Industry Co (TSE:4990) has a current ROC (Joel Greenblatt) % of 8.41%. The current ROC (Joel Greenblatt) % is 8.41%, which is 44% below median its 10-year median of 15.07 and 20.4% below the Chemicals industry median of 10.56. Showa Chemical Industry Co's overall GF Score™ is 41/100 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 Showa Chemical Industry Co (TSE:4990), the current ROC (Joel Greenblatt) % is 8.41% 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.
Showa Chemical Industry Co Ltd is engaged in the development and manufacturing of diatomite and perlite. The product range consists of radiolite diatomite filter aids and functional additives, and topco perlite products. Its products are used in a widening spectrum of applications from chemical manufacturing, pool water treatment, pharmaceuticals, incinerator exhaust filtration, the manufacture of building materials, silicone resins, and soil conditioners. It is operating a diatomite plant in Jilin Province, Northeast China.
41GF Score
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